Levis Case Study Levi Strauss Term Paper

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Just as subsidiaries can provide high quality, low-cost manufacturing, they can also offer Levi Strauss high value channels for distribution and marketing.

2. Levi Strauss's global expansion strategy depends on maintaining a networked structure, on strategically locating production and distribution operations worldwide, and perhaps especially on its approach to product customization. Customizing its products for different markets worldwide enhances sales in localized markets and helps Levi Strauss meet the needs of differential consumer demands.

Furthermore, Levi Strauss can expand the range of products it provides in all markets. If a certain cut, style, or color proves successful in one area, it may likely become a trend in another. Researching the needs of specific markets also allows Levi Strauss to design products for a target population. For instance, the Asian lines will include more production of smaller sizes vs. The North American or European markets.

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Localized trends and climate factors will also impact design decisions such as which colors or cuts to promote in which region and when.

In addition to customizing its products for different markets, Levi Strauss also developed a networked structure for manufacturing and distribution. With a core hub in the United States, Levi Strauss maintains a worldwide network in which manufacturing and distribution can be dispersed through a region or even worldwide. This way, Levi Strauss can minimize costs while maximizing profits. Similarly, Levi Strauss forms strategic alliances with foreign companies. These alliances give Levi Strauss helpful entry into foreign markets and reduces operations costs. Subsidiaries are closely monitored not only for quality control but also for working conditions, so that the company can avoid unfair or inhumane labor….....

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