65. Levis Strauss and Co, maker of Levi's familiar 501 and 505 brands of jeans, also make a new brand that was introduced for discount retailers such as Walmart. Levi's strategy with the new jeans was to sell a competitively priced pair. The jeans will be about the price of the familiar 501 and 505 jeans. To get costs down Levi's will: Use cheaper fabrics and materials. • Shun costly mass-market advertising. • Strictly limit 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?
65. Levis Strauss and Co, maker of Levi's familiar 501 and 505 brands of jeans, also make a new brand that was introduced for discount retailers such as Walmart. Levi's strategy with the new jeans was to sell a competitively priced pair. The jeans will be about the price of the familiar 501 and 505 jeans. To get costs down Levi's will: • Use cheaper fabrics and materials. • Shun costly mass-market advertising. • Strictly limit 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?
Test-Bank-for-Cost-Management-A-Strategic-Emphasis-6th-Edition-by-Blocher.docx