Levi Strauss Co.

Project Title:

Levi Strauss Co.

By

Jason Lee

Jin M Kim

John Glenn

Tom Matson

Yong Kim

BUSA 499-01 Strategic Management

Spring 2008

Chung-Shing Lee, Ph.D.

Table of Contents

Intrepid International 3

Executive Summary 4

Strategy Identification 5

Segmentation Graph 6

Strategic Evaluation 6

Industry Defined 7

Porter's Five Forces

Threat of Entry 8

Threat of Rivalry 10

Threat of Substitutes 11

Threat of Suppliers 12

Threat of Buyers 13

Competitor Analysis 13

Customer/Marketplace Trends & Environment Forecast 15

VRIO

Value 16

Rarity 17

Imitability 17

Organization 17

VRIO Table 18

SWOT Analysis 18

Strengths 19

Weaknesses 20

Opportunities 20

Threats 21

Strategic Option Development

New Premium Denim Line 21

Fast Fashion 22

Strategic Option Evaluation 22

Trade-Off Table 24

Strategic Selection 24

Strategy Implementation 25

Measuring Competitive Advantage 26

To Whom This May Concern:

Intrepid International is an external consulting agency founded in 2007, located in Tacoma, Washington. The company consistently performs consulting audits for the surrounding community and both private and publicly traded firms across the United States. At Intrepid International, we take pride in excellence in both external and internal audit reports. The excellence committed to at Intrepid International merits admiration and respect amid all peers of commerce.

Intrepid International executed this external consulting audit report with a high degree of responsibility, due care, and accuracy independent of the company audited. This consulting audit is a qualified audit report because the information contained in this report is of ‘true and fair view' of the state of the company's affairs. This audit also investigates the fact that analysis conducted has limitations. Some of the limitations consist of, but not limited to: financial information not presented, current economic conditions, and/or company data not released as a result of the distinctive nature of the industry.

Executive Summary

Levi Strauss and Co. is a privately held company owned by the family of its founder, Levi Strauss. The company was created about 130 years ago and currently is one of the leading apparel companies in the world. The company produces and sells a range of men's, women's and children's jeans and casual wear including cotton and cotton blend casual and dress casual pants, tops and seasonal pants and shirts, denim jackets, accessories, and footwear. The company has three major