Levi Strauss & Co was founded in 1853 by a Bavarian immigrant, Levis Strauss. In 1873, along with tailor Jacob Davis, Levis patented the attend to of putting rivets in pants to make them stronger. The first dungaree was thus born. Present in more than 160 countries and employing just about 11,550 people worldwide, the company is now very successful and a major US symbol (Exhibit 1).
The case describes the difficulties the firm is go about in 1994 in Japan, due to the shrinking market and raw(a) distribution channels. Japan is a unique market, compared to the rest of the world. Concerning jeans, Levis managers had to design their own models, which would fit Japanese taste, and could non confide only on importing American models. Levis is not yet a leader in the Japanese market, up to now though it shows good results. Competitors such as Edwin have double as many stores as Levis. These issues are still pertinent today, as the market is still shrinking.
Some of the issues addressed by Levi Strauss Japan K.K. are:
How can Levis cope with a shrinking market?
Do they have to change their trade strategy?
How should they compete with aggressive competitors?
What pricing strategy should they squeeze?
Which distribution channel is most suitable for them?
CRITICAL ISSUES
tailor 1: Shrinking market size
The traditional market for jeans in Japan would likely shrink or remain two-dimensional due to lower birth rate (Exhibit 2). Besides, the average keep down of jeans purchased per person per year in Japan is 0.5 compared to 1.5 in the US, sensation of the reasons being that Japans high schools require students to wear down uniforms.
Additionally, Levis main focus for their products is the segment of male consumers. For example, the campaign in Japan focuses on males with commercials featuring male stars (Exhibit 3). The company also offers products to womanish consumer youngsters, but in a very limited way. Comparatively, VF jackpot (VF), its competitor, operates multiple...If you want to get a full essay, order it on our website: Ordercustompaper.com
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