founded in 1853 by bavarian immigrant levi strauss

Founded in 1853 by Bavarian immigrant Levi Strauss

Sales in more than 110 countries

Geographic divisions:

Levi Strauss,

North

America

(LSNA)

based in the San Francisco

headquarters

Levi Strauss

Europe (LSE)

based in Brussels

Asia Pacific

Division (APD)

based in Singapore

Levi Strauss & Co. is a privately held company,

owned by descendants of the family of Levi

Strauss.

Shares of the company's stock are not

publicly traded.

Levi Strauss & Co. has publicly traded bonds,

and shares of the company's affiliate, Levi

Strauss Japan K.K., are publicly traded in Japan.

Belt

Tee

Skirt Cap

Major product :

Jeans

The company employs a staff of

approximately 8,850 people worldwide, including

approximately 1,000 people at its San Francisco,

California headquarters.

How

to p

rodu

ce?

How

to p

rodu

ce?

By the 1920s, Levi's® waist overalls

were the leading product in men's work

pants in the Western states.

During World War II, American GIs took

their favorite pairs of denim pants

overseas, guarding them against the

inevitable theft of valuable items.

Denim pants became less associated

with workwear and more associated with

the leisure activities of prosperous post-

war America.

The outerwear garment

of blue denim was

meant to serve as a

protective garment over

work clothes.

Fo

r wh

om

to p

rod

uce

?

After World War II, Levi

Strauss & Co.'s customer

base changed from

working adult men to

leisure-loving teenage boys

and their older college-age

brothers who called the

product "jeans."

Fo

r wh

om

to p

rod

uce

?

Levi’s® brand

Invented in 1873

Most successful

Original, authentic

jeans Dockers® brand

Launched in 1986 in the United

States

Expanded to more than 50 countries

Including tops, footwear,

outerwear and accessories for a

broad range of consumers.

The Levi Strauss Signature™

brand

Launched in 2003

IIncluding a collection of denim and non-

denim pants, shirts, skirts and jackets for

men, women and children

Wh

at a

nd

for w

ho

m to

pro

du

ce?

The demand for Levi’s® jeans tends to be more

elastic as :

a lot of close substitutes, such as Texwood® ,

Lee Jeans and Pointer Brand.

D

Q (quantity)

P (price)

0

Levi’s® jeans

With Advertisement, by giving coupons

The demand for Levi’s Jeans increase.

Quantity

Price

The total revenue

Q (quantity)

P (price)

0

Levi’s® jeans

D1

D2 GAIN

S

P1

P2

Q1 Q2

Q (quantity)

P (price)

0

Levi’s® jeans

D1

P1

P2

Q1 Q2

LOSS

GAIN

Lower the price

Quantity

AS it is elastic, gain > loss

So revenue

The supply for Levi’s® jeans tends to be more elastic as:

It belongs to light industry

It can increase production by employing extra labour

No professional skills/special equipment for workers

required

Many new entries of producer

S

Q (quantity)

P (price)

0

Levi’s® jeans

Monopolistic

competition A large number of sellers and buyers

in the clothing market e.g.

Free entry and exit

Goods are heterogeneous

Imperfect information

Works with Philips Electronics

To design the first electronic jackets

Philips provides the technology and Levi's provides

the brand name for a digital future that they believe will

expand the business base of both companies.

Advantages:

To diversify production

To extend brand name to other production lines

To use resources more flexibly

THE END