This Study Resource Was: Ana Fdez de La Puente 100409218

Ana fdez de la puente
100409218
1. What went wrong with Levi Strauss strategic marketing?
In 1853, the brand of jeans Levi became the most popular brand
known for selling jeans at that time. They had a huge impact since their
business grew at very amazing rates. It was known worldwide. As after
WWII American products had a boom and started to be very successful
in the entire world. However, this popularity was mostly focalized in
Europe. This popularity as the article mentions was promoted by
Hollywood actors and movies. The actors appearing in the Hollywood
screens, transmitted several feelings to the spectators while wearing
Levi’s jeans. Then, the people watching those movies were thrilling to
m
er as
buy the brand’s products in order to get to feel and experience the
co
eH w
same things as in those movies. Such feelings were freedom,
o.
braveness, individuality…
rs e
However, even though Levi has a great beginning there were some
ou urc
situations that made the company fall. In the 1970’s the company had
o
not yet faced any competitors but in this decade they eventually did.
aC s
This made their situation worse.

v i y re
However, there was a strategic mistake in the company’s marketing.

Due to all the fame and the boom that the company experienced, they
ed d
had the arrogancy to think that they did not need any type of
ar stu
innovation. However, when new tendencies started to show up and

Levi did not take into account what young people such as teenagers
sh is
were looking for. This was a huge mistake, as the brand was considered
Th
as a “synonymous of rebellious youth movement”. Teenagers saw the

brand as a brand for parents which a very contradictory feeling due to
what Levi wanted to transmit. The company had an arrogant way to act
and they did not offer products to all kind of publics instead they only
focused on adults, due to Levi had the feeling that they were such an
important brand that nothing would tear them down. They got stuck
and were chased by other brands who entered the market.
This study source was downloaded by 100000797930090 from CourseHero.com on 04-08-2021 11:13:25 GMT -05:00
https://www.coursehero.com/file/80617144/What-went-wrong-with-Levi-Strauss-strategic-marketingdocx/
100409218
2. Use the Porter’s matrix to analyses the competitive structure of the Levi
Strauss’ reference market?
The Porter’s matrix is a category scheme that
was described by Michael Porter. It mainly
consists of four types of strategies that firms
use in order to accomplish competitive
advantage. The matrix consists of a company
choosing one of two types of competitive advantage. Because that is how
porter said that the maximum benefit was reached. The firms can either
chose a lower cost than the firms competing against them or they can
choose the differentiation strategy which is basically being different based
m
er as
on what customers want…Each strategy changes based on the business
co
eH w
structure the firm choses to follow, economical features and the
o.
segment’s tactics to which the firms belong to.
rs e
According to the article we can observe several forces from the porter’s
ou urc
matrix being applied to the Levi Strauss’ competitive structure. From 1853
o
to 1873 the brand Levi grew a lot and it was considered to be the only
aC s
brand selling jeans. They had the domain of jeans market. This is because
v i y re
they opted for a differentiation strategy. The customers saw Levi as a

brand exclusive for the clients since no other brand was selling this
ed d
product. Nevertheless, competitors started to appear in 1970. Then, Levi

ar stu
started to lose their exclusivity among customers. According to Porter’s

matrix the success does not only resides on having the cost leadership. He
sh is
actually defended that having that having the leadership of a business

Th
sector can be considered successful even when the control of the whole
sector has not been achieved. This article does not mention all the forces
that porter’s matrix includes.
100409218
3. Use the competitor’s identification matrix to assess the competitive

threats confronted by Levi Strauss.
Levi did not show a lot of interest in changing the prices. They set the
prices based on them and not on how many competitors were against
them at that time. Levi had many initial competitors some haute couture
firms as Gucci, Armani… And other standard brands as Benetton, Zara,
H&M, Tommy Hilfiger… The haute couture brands set very high prices as if
it was something very innovative and exclusive that only certain people
could afford. And the standard brands set some more affordable prices.
Levi did nothing in order to improve their situation. They were being
arrogant as they thought that they would be always the number one firm
m
er as
in jeans sellers. However, this arrogancy led them to failure.
co
eH w
Levi had several threats, such as an amazing increase in the number of
o.
competitors in the market of jeans. There was also a product substitution
rs e
since as the number of competitors augmented, levi lost its exclusivity
ou urc
among customers. Customers found new options where they were able to
o
buy jeans. Levi also had the threat of being unsecure about whether they
aC s
should have adapted their brand and products to time and young people.
v i y re
They had the uncertainty that if they executed those changes younger
people would have not adopted their new styles. This left them behind
ed d
compared to other firms that did innovate.

ar stu
sh is
Th
Powered by TCPDF (www.tcpdf.org)

This Study Resource Was: Ana Fdez de La Puente 100409218

Uploaded by

Copyright:

Available Formats

This Study Resource Was: Ana Fdez de La Puente 100409218

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

This Study Resource Was: Ana Fdez de La Puente 100409218

Uploaded by

Copyright:

Available Formats

Ana fdez de la puente

1. What went wrong with Levi Strauss strategic marketing?

This made their situation worse.

However, there was a strategic mistake in the company’s marketing.

innovation. However, when new tendencies started to show up and

as a “synonymous of rebellious youth movement”. Teenagers saw the

they opted for a differentiation strategy. The customers saw Levi as a

product. Nevertheless, competitors started to appear in 1970. Then, Levi

started to lose their exclusivity among customers. According to Porter’s

actually defended that having that having the leadership of a business

3. Use the competitor’s identification matrix to assess the competitive

compared to other firms that did innovate.

You might also like