LEVI¶S JEANS

Strategies of global business
Darina, Sitora, & Maximilien

.... geo-textiles.......................... 4 3................. ............................................. ................ ............................ the industry is facing competition as well as opportunities. 7 1...................Strategies of Global Business ............ .. Introduction 1.......................................... HOW GLOBAL IS THE INDUSTRY?.......... .......................... ... the global textile market is worth of more than $400 billions at present........................................ In a more liberalized environment.......... ....... ....... ....... ...1...... Industry¶s description The textile and clothing (or T&C) industry is a diverse and heterogeneous industry which covers an important number of activities from the transformation of fibres to yarns and fabrics to the production of a wide variety of products such as hi-tech synthetic yarns................... ... ... COMPANY¶S DESCRIPTION ............. INDUSTRY¶S DESCRIPTION... Many new competitors as well as consumers have entered the global market with their immense capabilities and the desire to grow: 1 ........000 companies employing 2.. in 2006 there were 220. .. WHAT ARE THE DRIVERS? ................ .......................... ....................... wool....... CONCLUSION ...................3................................. clothing etc According to the latest structural data available..Levi¶s Jeans and Maximilien 12th of May 2011 Darina............................. ..................................... ..... 3 2........... The world textile and apparel industry has gone into a phase of transformation since the elimination of quota in the year 2005...............................................2............................. . Week 10 Table of Content 1.. ............................. ..... ............ The textile and clothing sector accounts for 3% of total manufacturing value added in Europe According to statistics.. ................. ................................................. 5 2.. WHAT ARE THE USED LEVERS?........... industrial filters..............1....................................... 4 2.................. 7 4....... Sitora.... 4 2........... RECOMMENDATIONS . ........ INTRODUCTION........ bed-linen........................... .............. ... ......................................... 1 1... FINDINGS ..5 million people and generated a turnover of ¼190 billion........... ........... It is predicted that Global textile production will grow up to 25 % by the year 2010 and 50 % by 2014.......................... 1 1............. .....2...... ........................................................................................................... ..1..

Levi¶s Jeans and Maximilien 12th of May 2011 Darina. The reasons for such expansion include growth of new consumption markets. Global expansion of modern retail business. boom of air and sea shipments. It is going to be a challenging global market full of risks but also full of unbelievable opportunities.Strategies of Global Business . Sitora. South East Asia. Turkey. growth of textile and related production in Eastern Europe. China and South America. In future. ex Russian block. Strategic partnership among various interests will become more important than the traditional transactions through vendor relations.A Perspective The future global market for textile and apparel is expected to expand in a significant way. Middle East. 2 . India. Week 10 Future Textile Industry.

specializing in riveted denim jeans and different lines of casual and street fashion.S. still in use by Levi Strauss. Chic. Lee Sport. Levi's' plants were perhaps the highest performing. modern jeans were not produced until the 1920s. and NBA apparel under license. Consumer tastes. a Canadian clothing manufacturer. was founded in 1873 in San Francisco. From the early 1960s through the mid 1970s. Earl Jeans. clothing manufacturers aren¶t just at the mercy of consumers²they¶re at the mercy of retailers that also face serious competitive challenges and profit pressures. The North Face. Here is some additional information on each of these competitors. Vassarette. Perhaps most impressive. Gitano.Levi¶s Jeans and Maximilien 12th of May 2011 Darina. MLB. Rustler.Company¶s description Levi Strauss & Co. However. Mr. Levi Strauss & Co. Peter Haas Sr. and Vans. is a volatile and fickle one. based in Singapore. based in the San Francisco headquarters. VF also makes Nike. California to open a west coast branch of his brothers' New Yorkdry goods business.I. whims. JanSport. Some of the major competitors in the jeans-casual sportswear clothing apparel industry include Gap. Week 10 The clothing apparel industry. The world¶s number one maker of jeans (with 21 percent of the market) includes a bevy of brands such as Lee. based in Brussels. Brittania. (LS&CO) is a privately held clothing company known worldwide for its Levi's brand of denimjeans. The company¶s other brand names include Vanity Fair.. The company employs a staff of approximately 10. Tommy Hilfiger.. (GWG). was Levi's expansion under Simpkins was accomplished without a single unionized employee as a result of Levi's' and the Haas families' strong stance on human rights and Simpkins' use of "pay for performance" manufacturing at the sewing machine operator level up. Although the company began producing denim overalls in the 1870s. and wants can change as quickly as teenagers in a department store dressing room. GWG was responsible for the introduction of the modern "stone washing" technique. Levi Strauss Europe. It was founded in 1853 when Levi Strauss came from Buttenheim. Levi Strauss experienced explosive growth in its business as the more casual look of the 1960s and 1970s ushered in the "blue jeans craze" and served as a catalyst for the brand. Sitora. Nautica.Strategies of Global Business . NFL. Simpkins is credited with the company's record paced expansion of its manufacturing capacity from fewer than 16 plants to more than 63 plants in the United States from 1964 through 1974. Levi's. expanded the firm's clothing line by adding new fashions and models. Franconia. but remains owned and controlled by descendants and relatives of Levi Strauss' four nephews.2. Levi's. Although manufacturers and retailers want the same thing²products that consumers demand and purchase²they don¶t always hold the same views about the most effective strategic decisions for achieving this goal. Paul Glasco and George P.. best organized and cleanest textile 3 . and Asia Pacific Division (APD). The company briefly experimented (in the 1970s) with employee ownership and a public stock listing. As a result. 1.. however. the main brand. (Kingdom of Bavaria) to San Francisco. under the leadership of Jay Walter Haas Sr. Wrangler. Red Kap. Lily of France. Eastpak. and VF Corporation. Bulwark. is a worldwide corporation organized into three geographic divisions: Levi Strauss Americas (LSA). H. Middle East and Africa (LSEMA). and Riders Jeans brands. and owns and develops a few brands. including stone-washed jeans through the acquisition of Great Western Garment Co. Simpkins Sr. particularly for companies with brand-name fashions.500 people worldwide.

Levi¶s Jeans and Maximilien 12th of May 2011 Darina. which can be easily applied to the markets worldwide. Sitora. Many of the phone's cosmetic attributes are customisable at the point of purchase. Levi¶s had created a global distribution of the products the company is offering. Launched in 2003. distributed and sold in the region of Americas. Levi¶s® and Dockers® brand products are marketed and sold in more than 40 countries in the region. The Dockers brand. The headquarters of the Americas region is situated in San Francisco. launched in 1986. Levi Strauss Canada Levi Strauss Mexico Levi Strauss Latin America Levi Strauss Americas is the company¶s largest region. The products of Levi¶s are being manufactured. Week 10 facilities of their time. Levi Strauss Signature features jeanswear and casualwear. 4 . In the Europe Division.1. How global is the industry? The business of Levi Strauss & co is well-established brand worldwide. This goal demands hiring well. The goal also requires the global trends awareness and had introduced business practices. The headquarters of the division are placed in Brussels.experienced and talented local managers who desire to be a part of the global brand. 2. The company operates in 110 different countries and around half of the net profit of the company comes from the sales outside of the United States. This had helped Levi¶s to build a brand that people love and trust worldwide.Strategies of Global Business . helped the company grow through the mid-1990s. Middle East and North Africa. which were known in the industry to be notoriously hot. Europe Division and Asia Pacific Division. Levi's even piped in massive amounts of air conditioning for the comfort of Levi's workers into its press plants. as denim sales began to fade. which is sold largely through department store chains.000 employees. which are responsible for the operations in different countries: Americas division. Findings 2. Levi Strauss attempted to sell the Dockers division in 2004 to relieve part of the company's $2 billion outstanding debt. with nearly 4. Dockers were introduced into Europe in 1993. The company has three main headquarters. Levi's released a mobile phone in co-operation with ModeLabs. In November 2007. The major goal of Levi¶s is: ³To operate in a truly authenticate way wherever we source our materials or manufacture and sell our clothes´. The Americas Division includes four distinct businesses: ‡ ‡ ‡ ‡ Levi Strauss U. 2004 saw a sharp decline of GWG in the face of global outsourcing. Belgium and covers Europe. which is due to the responsible business practices track record that were combined with the respect to local communities.S. so the company was closed and the Edmonton manufacturing plant shut down.

Sitora.500 people across the region with nine sales offices. and has offices in Australia. The Asia Pacific Division of the company also includes subsidiary businesses. New Zealand. Pakistan. Japan. the Philippines. Malaysia.500 employees. the company employs more than 3. six distribution centers and three production facilities In the Asia Pacific Division. the headquarters are situated in Singapore since 1995. India. Korea. South Africa. The company employs around 4. Week 10 In the Europe Division. Hong Kong.2. licensees and distributors. Indonesia. 2. Taiwan and Vietnam. What are the drivers? Market Globalization drivers: ‡ ‡ ‡ ‡ ‡ Customers needs become more common Customers and channels increase Transferable marketing became the norm The world brand was established Reunion of income per capita Cost Globalization Drivers: ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Economies of scale increased Lower factor costs Sourcing efficiency to improve Flexible operations More investment on high cost Product Development Integrated supply chain Relocation of production Advantages of different country costs Cost savings Competitive Globalization Drivers: ‡ ‡ Exports and imports within countries increases More and more competitors from different regions and continents 5 .Strategies of Global Business .Levi¶s Jeans and Maximilien 12th of May 2011 Darina.

Japan. Indonesia. shirts. The headquarters in San Francisco are the corporate and Americas Division headquarters. which operate in different regions of the world. Brussels is known worldwide as the center of the creativity. Dockers and Signature by Levi Strauss & Co. three production facilities and six distribution centers. Mexico and Latin America. on creating relations with the new customers and to provide better quality products to the customers of the company. originality and designs in the European region. Sitora. The headquarters in Brussels are mainly responsible for the operations in Europe. women handbags. The products are being marketed and sold in approximately sixty countries in the regions. the Philippines. The products Levi¶s mainly offers to its customers are jeans. United States. In the region. Global Location of Activities Levi¶s company has three main headquarters. The headquarters in Singapore were founded in 1995. sourcing and manufacturing operations are taking place in 15 different countries of the region. since it offers the closing items and accessories to the customers of the company. Pakistan. etc. South Africa. Nowadays. The San Francisco headquarters are responsible for operations in Canada. Malaysia. sunglasses. Taiwan and Vietnam Global Marketing 6 .500 employees in the region. which are Levi¶s.Levi¶s Jeans and Maximilien ‡ ‡ ‡ ‡ Increase rivalry between competitors Interdependence of countries improved Global network growth Global strategic alliances increase 12th of May 2011 Darina. which was established in 1853 and is the home base for the company. which are covered by the division. What are the used levers? Global Market Participation Levi¶s company mainly targets the clothes markets. jackets. The headquarters in Singapore are responsible for the Asia Pacific Division. The retail. the company has nine offices. The strategy of the company focuses on having long-term relations with the existing customers of the company. shoes and accessories like belts.3. Global Products and Services The company offers three different brands to the customers. The target market of the company is a mainly upper and upper middle class. Week 10 2. the company employs around 4. New Zealand. Middle East and North Africa. Korea.Strategies of Global Business . cotton pants.

The main competitors are: ‡ ‡ ‡ ‡ ‡ ‡ ‡ Calvin Klein Gap Jeans VF Corporation (Lee. the company used the historical theme in order to remind the customers of the old history of the company. Also. Wrangler) Tommy Hilfiger Pepe Jeans Leeds GAP jeans 3. which caused the decrease of the brand image. By promoting brand loyalty. was threatened by competition due to the relatively low barriers of entry. The marketing efforts of the company didn¶t help much to increase worldwide demand for jeans. Levi¶s was pushed by the competitors to improve and increase the marketing efforts due to the increase of the competition. In the advertisements. Levi¶s was hoping to maintain the existing customers of the company. Conclusion 7 . therefore the company focused on promoting brand loyalty and brand image.Strategies of Global Business . Recommendations 4.Levi¶s Jeans and Maximilien 12th of May 2011 Darina. Sitora. the company was focusing on promoting brand image and attracts the young target groups. Week 10 The main goal of the marketing efforts of the company was to raise the brand awareness. Global Competitive Moves Levi Strauss & Co.