Levi Case

Topics: Levi Strauss & Co., Levi Strauss, Jeans Pages: 1 (369 words) Published: November 15, 2011
In this case, Heidi Green is working for Custom Clothing Technology Corporation (CCTC). She is given a few days to come up with a recommendation about a new concept called Personal Pair. CCTC had approached Levi Strauss with a joint proposal; their jeans could now be customized in style and fit to meet each customer’s unique needs and taste. According to CCTC, this idea would generate higher profit margins for the company. At the same time, Heidi was hesitant about Levi being able to handle the new technology and was uncertain if the whole operation would come back later to hunt her. Market research revealed that only a quarter of women were truly happy with the fit of their jeans. The company hoped to attract higher income customers because of this situation.

After being familiar with the pros and cons of this new possible operation, Heidi was faced with a few problems. What if the cost savings in the proposal were based on CCTC’s estimates in their proposal for the program? Would this plan still be successful if the costs changed a lot? How much exactly were women willing to pay for a pair of jeans? She also started thinking about the competition and if their low-cost rivals would dive into this market as well if the program were successful.

This proposal has much strength; such as large possible number of females wanting to pay the higher price of their jeans and of course many males would too. The company could also market themselves as not taking part in exploiting disadvantaged workers from poor countries unlike their competitors. Some weaknesses would include the competition having a low cost labor force because of them moving into low-cost overseas facilities. Some unknown factors such as some of these calculations being right may be a danger to the proposal, for ex if some costs become a little higher for this production, the bottom line will decline.

My recommendation would be to go for it, not many companies provide this kind of service for...
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