Levis Strauss and Co, Maker of Levi's Familiar 501, 512

Essay

Levis Strauss and Co, maker of Levi's familiar 501, 512, and 711 brands of jeans, also makes a brand that was introduced for discount retailers such as Walmart. Levi's strategy with the new jeans (the Signature brand) was to sell a competitively priced pair of jeans. The jeans are about one-half or less the price of the familiar 501, 512, and 711 jeans. To get costs down Levi's:
Uses cheaper fabrics and materials.
Shuns costly mass-market advertising.
Strictly limits the number of fits, styles, and colors.
Required:
1. Assess the new strategy at Levi. What do you think are the potential benefits and risks?
2. How will the firm's value chain and balanced scorecard change as a result of the new strategy?