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Levis Personal Pair Jeans A Case Solution

Solution Id Length Case Author Case Publisher
2749 2285 Words (9 Pages) William Lawler, John K. Shank, Lawrence Carr Babson College : BAB020
This solution includes: A Word File A Word File

This case study details Levi's Pair and the strategy proposed to become a market leader. The differentiation strategy based on delivering customers personalized pairs of jeans increases their brand loyalty. In addition to that, their focus is to become a cost leader within the market as well. They are achieving this by ensuring that the cost of each unit produced is lower than their competitors. This enables them to be high on the differentiation and cost leadership spectrum.

Moreover, by integrating technology into their strategy, they are also allowing themselves to go further than their competitors. This also discusses the addition of CCTC's proposal. This software could help Levi's further advance its "personal pair" into the market. Lastly, the case analyzes steps the organization has taken and can potentially take to ensure its innovative process continues to be distinct and low-cost compared to the competitors. Thus, maintaining their competitive advantage.

Following questions are answered in this case study solution:

  1. What is Levi’s strategy?

  2. Where is Levi’s on spectrums of differentiation and cost leadership?

  3. What are the other important elements of Levi’s strategy? Would these change under CCTC’s proposal?

  4. How is Levi’s able to differentiate?

  5. Which source(s) of differentiation is relevant?

  6. Which of Levi’s capabilities/resources are most important for maintaining a differentiation advantage?

  7. Evaluate the external environment and its strategic implications at two levels:

    a. Broader industry: apparel manufacturers

    b. Specific industry: jeans manufacturers

Case Study Questions Answers

1. What is Levi's strategy?

Levi's strategy is essentially a differentiation strategy. They based their strategy highly on differentiation. Due to this, Levi's has successfully manufactured generic products and ensured its own competitive advantage in the industry. A differentiation strategy is an approach to developing something unique and distinct from other competitors in the industry. This differentiation strategy achieves the objective of increasing the competitive advantage of Levi's in the marketplace. A business usually does this by analyzing its strengths and weakness and focusing on what the customers of the brand need. This coincides with what the brand can provide and the value addition of focusing on the particular product in question. Two types of differentiation strategies are available: a broad strategy and a focused differentiation strategy. The former consists of building a brand or business that is different in some way from the competition in the industry or the consumer market targeted. 

The latter requires the business to offer unique features to products and services and target a specific market. Levi's has always been in the business of the former, more focused differentiation strategy. Their women's jeans were specific to women and were advertised accordingly. Now their "personal pair" service works similarly. It essentially personalizes the process of purchasing jeans for the customer. It differentiates them from their competitors in being able to provide not only a personalized experience to their customers but also a "personal pair" of jeans. This strategy allows them to stand out from their competitors. It also enables them to make the experience of purchasing jeans enjoyable and different from their competitors. This also creates consumer brand loyalty, which is key for increased profits and long-term customers. A unique experience and differentiated product just for them will create loyalty among customers. 

2. Where is Levi's on the spectrums of differentiation and cost leadership?

Levi's produces high-quality products and also prices them at affordable rates. They could price at a higher rate as their services could be equated to other premium providers. However, on the spectrum of prices, the products are priced at an affordable rate. In terms of differentiation, as discussed above, their strategy is more focused on the differentiation of the products. With the personalized Pair of jeans, they have the ability to charge a premium price.

Nonetheless, their focus is on brand loyalty. Thus, they are among the best price givers to their consumers. Levi's is high on the spectrum of differentiation and cost leadership. Cost leadership is a strategy brand can make use of to gain a reputation in the market for being the provider of cheaper goods in the market. For instance, Levi's aims to be delivering good quality goods at affordable rates. 

A cost leadership strategy can be applied to a variety of goods and services. The brands that are high on the spectrum of cost leadership, such as Levi's, offer high-quality products, but these are offered at the lowest possible prices that enable them to remain competitive and simultaneously earn profits. In addition to being high on the spectrums of differentiation and cost leadership, Levi's is also focused on reducing its cost of production so that it may offer affordable prices to its customers. It is important to point out that practices that reduce profit or revenues are cost-based strategies. The focus is to produce products that cost less than other competitors. The reason Levi's is high on the spectrum of cost leadership is that they are able to produce "personal pair" at a lower cost and greater customer satisfaction. This Pair also makes them a leader on the differentiation spectrum.

3. What are the other important elements of Levi's strategy? Would these change under CCTC's proposal?

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