founded in 1853 by bavarian immigrant levi strauss
TRANSCRIPT
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