Thursday, March 21, 2013

LEVI JEANS: SWOT ANALYSIS






LEVI JEANS: SWOT ANALYSIS
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Levi jeans (SWOT analysis)
Since the founding of the company in 1853, Levi jeans have continued to control the significant share of the market because it has adopted the attributes of development and expansion in the international markets. The conduction of SWOT analysis shows that both internal and external environments for the company.
            The strengths of the company includes the aspects of excess working capital that has sustained the company and the choice of effective advertising medium  that has been adopted by the company. This has ensured that majority of the consumers are aware of the product. David Hunter has been known as the successful fashion brand in the market. some of the opportunities favoring the performance of Levi jeans includes the attributes of consumers becoming more leisure oriented thereby choosing the jeans and the consideration of K-mart and Wal-mart to opt out of the market for the selling of Levi’s jeans.  The aspect of the market share controlled by Levi Jean is another ideal incentive for growth and expansion. Levi jeans control 43 % of the market share.
            The weaknesses of the company can be cited the reduction in the loyalty of the customers and the decline sales of Levi jeans. In view of these disparities, nine plants that manufacture Levi jeans have been closed. In view of these, the market performance of the company has been adversely reduced. The threats facing Levi jeans are also immense for example, VF crop’s and Blue Bell jeans companies are gaining control of significant market share. Distributors like Sears and J.C. Penny’s have withdrawn their orders from Levi Jeans Company. Over the period, the company has introduced a policy that requires distributions to the large scale market distributors and sellers and this policy is adversely affecting the distributors and they may opt for other brands. Finance is an issue that enhances company performance and the company experienced dire consequences that were attributed to the financial distress that occurred in the periods of 1980-1982. This posed a threat because it reduced the aspects of production, manufacturing and distribution because they performance of the company was significantly reduced.