L e v i S t r a u s s& C o .

Market Failures

Levi Strauss & Co.Wicked Problem

COMPLACENCY

Underestimated theCompetition

Product Design Failure to Meet

NicheMarkets/Trends

Complacency

LS&Co.'s Market failures

Levi is rated in the top5 of Most American

Brands... Yet LS&Co.outsources 95% of its

products

IMPERFECT COMPETITION

1 2 3Fast Fashion Retailers

and Premium DenimLines have been

"chipping away" atLS&Co.'s market

dominance

FALLACIES FACTS PRODUCTS

No longermonopolized thedenim market...

Private OwnershipEnforced

Complacency

Levi's vs Main CompetitorsReturn on Assets Ratio   

LEVI'S LIFE CYCLEASSESSMENT

CARE TAG FOR THE PLANET IN-STORE PROMOTION

LS&Co. Created the FirstApparel Industry LifeCycle Assessment The Study Showed ThatMost Water Use HappensDuring the ConsumerCare Stage

Levi's Study Has Shiftedthe Blame of theCompany Being Wastefulto the Consumer

LS&Co. Heavily PromotesSustainability Through TheirOnline Presence and CareTag Initiative... However, LS&Co.'s Instore WaterLessItems are not asHeavily Promoted -Consumer Expected toInquire About theWater:Less Products.

INFORMATION ASYMMETRY

Men's Wear Accounts for75% of LS&Co.'s Business.Leaving the Women's LineVulnerable to an Already

Overcrowded Market

OPPORTUNITY COSTS

CONSUMER Design

LS&Co. Men'sSales

"Focus on innovativeproducts and initiatives

is great, but they'vefailed to meet the basic

consumer needs."

Slow Response toTrends

Failure to MeetNiche Markets

NEEDS OF DIFFERENT GROUPS

“The averageconsumer’s closet is

composed of around 7to 8% denim, if you

could just snapshotthe value… That

means by definitionthat more than 90% is

not denim”

Failure to Respond toConsumer Feedback

and Trends.Private Ownership

Allows forComplacency and

Slow Growth

CONSUMERS CONSEQUENCES

PRODUCERS/MEDIATORS CONSEQUENCES

Continuous RevenueLoss

Problems StayingRelevant and Trendy toNew Market Segments

STRENGTHS1. Authentic "American"

Branding 

2.Pioneered the Denim

Industry 

3. Wide Range

Distribution Channels

and Global Outsourcing 

OPPORTUNITIES 1. Entry into the

"Athleisure" Market 

2. New Emerging Global

Markets

3. Incorporate Stretch

into the Women's Line

 

WEAKNESSES1. Slow Response to

Trends 

2.  Increased

Competition of Niche

Markets 

3. Slow Growth Rate

SWOTANALYSIS

THREATS1. Fast Changing

Consumer Tastes 

2. Increased

Competition

3. Product

Substitution