Levi’s Strauss: a case study from an organizational plan point of view
Levis is undoubtedly one of the most recognizes brand of jeans on the planet. The business found by the Strauss family in 1875, initially manufactured jeans for miners out of tent fabric and canvas. However they later shifted to manufacturing jeans from denim which gained popularity amongst miners during the California gold rush.
Strategic elements of an organisational plan
The process of developing strategic elements of an organisational plan involves three broad categories.
Levi’s Strauss analysed its visions, mission objectives and external environments. This meant evaluation of the current market share and its segmentation, product range of competitors and what the company may want to do about it.
From the findings of the analysis, the company had to decide on two main factors. What industries to try and expand into and how to be competitive in those industries. As such Levi commissioned market research agencies to carry out survey and research on the habits and attitudes of its customer base. This was all done with the idea of moving into the higher price clothing market since up until now Levi has mostly produced casual wear of the low price category. After such quantitative surveys the target market was selected.
This target market comprised of Independent consumers with expensive tastes looking for classic designs which are not massed produced and rely on individual styling and fitting. It was then decided by Levi to carry out analysis of its target market in order to study their attitudes and behaviour in details so that further plans to enter the specific market segment can be made.
It was decided by Levi to avoid direct price wars and as a result Levi decided to charge 10% above the prices of it closest competitors. In order to cater to the classic independent nature of the target market segment, Levi also decided to distribute through...
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