Abstract:
Levi Strauss, the original blue jeans manufacturer and largest apparel manufacturer till the 1990s, has been steadily losing market share in the US since 1996. Levi was also said to have been sloppy in terms of keeping up with the latest trends in fashion and hence was taken over by competitors such as Tommy Hilfiger, VF, Gap. Part A of the case talks about this phase of Levi, from its birth. The case highlights the period in Levi’s history from the 1980s since when Robert Haas, great-great-grand nephew of the founder has been at the helm of affairs. It is his Utopian management style which experts have pointed out as the reason for the fading of the brand. Will Levi be able to stem the decline in its sales and catch up with the industry trends?
Pedagogical Objectives: * To understand how Levi had become the largest apparel manufacturer * To understand the effectiveness of Utopian management style on business.
Levi Strauss in the US (Part B): The Great Turnaround Plan
Abstract:
Levi Strauss, the original blue jeans manufacturer, has been steadily losing market share in the US since 1996. When the industry trend was to move manufacturing facilities to developing economies in order to save on labor costs, Levi dragged its feet. It was also said to have been sloppy in terms of keeping up with the latest trends in fashion and hence lost its market leader position to Tommy Hilfiger, VF, Gap… and a whole lot of new entrants in the industry. Part A of the case talks about this phase of Levi, from its birth. The issue here is: “How will Levi stem the decline in its sales and catch up with the industry trends?”
In the 21st century the company has initiated a series of comeback efforts aimed at recapturing its lost glory. Levi’s president and CEO, Phil Marineau, who joined the company in 1999, has engineered ‘The Great LS & Co. Turnaround Plan,’ to revive the company. Part B of the case