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Levi’s “Personal Pair” Jeans
Introduction
Women’s jeans was very popular and broad market. Levi Strauss was the market leader in the growing fast market in the US which 51 size combinations of standard Levi’s women’s jeans were sold for decades. The market research revealed that only 24 percent of women were fully satisfied with their products at cost of $50 per pair. The fashion in jeans meant more style, more colors and better fit that made more complexity in product line for manufacturing-oriented. The other problem was supply chain from product design to retail sale that was still complex, expensive and slow. Therefore, the Personal Pair kiosks were introduced as a new alternative value chain concept with a new technology of MA-based software application link to point of sale customer fitting program directly with the single ply cutting programs in apparel factories by a partnership with Custom Clothing Technology Corp (CCTC). This report addresses in five parts. First, the impacts of the Personal Pair kiosks are identified. Then, the relevant issued in terms of performance measurement and value chain analysis are recognized including SWOT analysis. The third part is an alternative solution to solve the problems. Fourth, this section suggested about the role of management in decision making. The final part is conclusions of this study.
Problems
Levi faced with the complexity in product line for manufacturing-oriented and the complication of supply chain from product design to retail sale. Therefore, Levi’s jeans had high cost of productions and high selling price that lead to the lower of customer satisfaction. When the Personal Pair system was established, it had impacts on the value chain of traditional original Levi’s store. Managements have to answer how it will identify the price of the Personal Pair jeans and how it will change the overall result of ROIC. The other issue is how to make decisions in further expansion, extent to other products,
Introduction
Women’s jeans was very popular and broad market. Levi Strauss was the market leader in the growing fast market in the US which 51 size combinations of standard Levi’s women’s jeans were sold for decades. The market research revealed that only 24 percent of women were fully satisfied with their products at cost of $50 per pair. The fashion in jeans meant more style, more colors and better fit that made more complexity in product line for manufacturing-oriented. The other problem was supply chain from product design to retail sale that was still complex, expensive and slow. Therefore, the Personal Pair kiosks were introduced as a new alternative value chain concept with a new technology of MA-based software application link to point of sale customer fitting program directly with the single ply cutting programs in apparel factories by a partnership with Custom Clothing Technology Corp (CCTC). This report addresses in five parts. First, the impacts of the Personal Pair kiosks are identified. Then, the relevant issued in terms of performance measurement and value chain analysis are recognized including SWOT analysis. The third part is an alternative solution to solve the problems. Fourth, this section suggested about the role of management in decision making. The final part is conclusions of this study.
Problems
Levi faced with the complexity in product line for manufacturing-oriented and the complication of supply chain from product design to retail sale. Therefore, Levi’s jeans had high cost of productions and high selling price that lead to the lower of customer satisfaction. When the Personal Pair system was established, it had impacts on the value chain of traditional original Levi’s store. Managements have to answer how it will identify the price of the Personal Pair jeans and how it will change the overall result of ROIC. The other issue is how to make decisions in further expansion, extent to other products,
References: Porter, EM 1980, Competitive strategy: techniques for analysing industries and competitors, viewed 2 April 2011, < http://books.google.com.au/books?hl=th&lr=&id= QN0kyeHXtJMC&oi=fnd&pg=PR9&dq=competitive+strategy%2Bmichael+porter& ots=joHZYnJ3Bb&sig=PBco1BDp9UH_xMRxRlkIu0aXfVE#v=onepage&q=compet itive%20strategy%2Bmichael%20porter&f=false>. Proctor, RA & Hassard, JS 1990, ‘Towards a New Model for Product Portfolio Analysis’, Management Decision, vol. 28, no. 3, pp.14-5, viewed 2 April 2011, < http://www.emeraldinsight.com.simsrad.net.ocs.mq.edu.au/journals.htm?issn=0025- 1747&volume=28&issue=3&articleid=864430&show=html>.