Levis at Walmart

free essayLevi’s is one of the most popular jeans brands in the world. People have always valued the outstanding quality of jeans and other clothes produced by the company. SWOT analysis allows to outline the strengths, weaknesses, opportunities, and threats associated with the company’s performance. In addition, the company has an outstanding expertise in navigating the jeans industry, which allows it to easily accommodate to the terms and conditions of the external business environment. Further, the company has a myriad of efficient distribution channels. Moreover, the company’s management knows how to successfully apply global outsourcing methods. As for the company’s weaknesses, the rising competition, especially from the brands that sell clothes at cheaper prices and focus on the younger generation, has a high pressure on Levi’s. It reduces the space for its growth and makes it challenging to protect the company’s brand name. In fact, the company can hardly protect its image on the global level. In terms of opportunities, Levi’s can increase the spread of the western clothes across the world. However, the ever-changing customers’ tastes and the continuous increase in competition and substitute products are the main threats the company has to deal with.

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Question 2

According to the case study, which reveals the history of Levi’s, its competitive position, and product lines, it is evident that the company follows a differentiation strategy. First, the company selected a single industry for its operation. Differentiation took many forms at Levi’s, which fuelled the emergence of various characteristic features that support the company’s strategy. For example, the company’s name and brand image started obtaining popularity from the beginning of its existence. Besides, the company offers quality customer service, and the company’s leadership is dedicated to making the firm’s products beneficial for potential clients. Outstanding quality is another characteristic trait of the company’s products. Further, innovation is another characteristic feature of the company’s performance, which played a significant role in the history of the firm’s growth. Levi’s not only aimed to increase its product lines, it has always been willing to improve its previous collections. As a result, a continuous optimization of the company’s products made it possible to reach success and win a significant market share. Consequently, all the facts mentioned above support the idea that Levi’s utilizes a differentiation strategy in its performance in order to win the loyalty of customers.

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Question 3

On the one hand, the position of Levi’s allows distributing its products through Walmart. Collaboration with Walmart, a global retailing leader capable of bringing Levi’s to the new level of the competition, may become a successful partnership. On the other hand, Levi’s has dedicated many years to building its brand and image. Thus, the selling of products via another corporation may taint the image of Levi’s. In addition, customers should not associate Levi’s with another brand since the company may lose its uniqueness and greatness. In addition, the contemporary media sources continue to highlight various lawsuits involving Walmart, which may further worsen the reputation of Levi’s. From this point of view, it is unacceptable for Levi’s to involve in business affairs with Walmart. Consequently, cooperation with Walmart would not be profitable, and it can hardly lead the company to success. Moreover, the company should continue to operate in the market of premium jeans, and the quality of its clothes must not be associated with the quality of products sold at any retailing company. The official stores of Levi’s is the best distribution option, which will support the company’s brand and image.

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