Evaluate the external environment and its strategic implications

After reading the Levi’s Case from our textbook, respond to the following prompts in one to five sentences:

Based on the information in the case (and as of the case’s date, Early 2000’s)

• What is Levi’s strategy?
  • Where is Levi’s on spectrums of differentiation and cost leadership? What are other important elements of Levi’s strategy? Would these change under CCTC’s proposal?
• How is Levi’s able to differentiate?
  • Which source(s) of differentiation are relevant (see Chapter 5 and Table 5.2 of textbook for sources)?
  • Which of Levi’s capabilities/resources are most important for maintaining a differentiation advantage?
• Evaluate the external environment and its strategic implications at two levels:
  • Broader industry: apparel manufacturers
  • Specific industry: jeans manufacturers
    • How attractive is its industry what are the key industry forces and success factors?
  • Do any major manufactures of jeans (with substantial market share) have broader product offerings (e.g. jeans < 50% of total revenue)
    • Should Levi widen their offering offerings (if so to where) based on the analysis of its competitors (both those who are focused and diversified)
• Analyze CCTC’s proposal & its impact on Levi’s participation in the value chain?
  • What does the value chain look like for Levi’s with & without the CCTC offer?
  • How else could Levi’s adjust its participation in the value chain?
  • Evaluate potential outcomes – Do Levi’s resources/capabilities support implementing CCTC’s offer; what are the strategic and financial upside and downside and how certain are the outcomes (e.g. impact of external environment change, reliability of the cost savings estimates, etc.)