Levi Strauss seem to be performing well in the market, discuss the following three key value measurements in relation to either one organisation; customer satisfaction, customer value add and profitability analysis.
Levi Strauss jeans created in 1873 began as a manufacturer of denim workpants with copper rivets
used to strengthen the pocket stitching. By listening to its customers, Levi Strauss created the
most popular piece of clothing in the world-blue jeans. Levi jeans sold in more than 110 countries
has gained competitive advantage through its product offerings, distribution, and customer
support.
How Does Supply Chain Usage Gain Competitive Advantage within an Industry.
Levi Strauss with assistance from customer support created the ‘personal pair’ kiosks that allow
women to custom fit and design their own jeans. This innovation, which is part of an eight step
process, involves taking four measurements from women with pre-programmed data in the kiosks
and with assistance form a sales clerk a final inseam measurement made. After the measurements
are made, a pair of jeans can be built to order.
The process is guaranteed with home delivery for an additional $5. Even though the “personal
pair’ jeans cost $15 more than off the shelf jeans, Levi Strauss’s sales and profits have increased.
For example, custom cut jean styles sales were up 49%, manufacturing and distribution costs were
reduced by 47%.In addition with the increased price on personal pair jeans along with costs
reductions, an increase in pretax profit increased by 467% or from $6 to $34 per pair of jeans.
Levi Strauss seem to be performing well in the market, discuss the following
three key value measurements in relation to either one organisation; customer
satisfaction, customer value add and profitability analysis.
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