Ecomics Research

Levi Strauss & Co.

Evaluating the Internal Environment

Strengths & Opportunities

Levi has a reputation for quality products and responsible business practices.

Levi has over 5,000 trademark registrations and applications worldwide. Trademarks are created on an ongoing basis. The company regards these trademarks as its most valuable assets because they bring substantial value in marketing of Levi products.

Levi offers innovative and upgraded products at attractive price points to multiple consumer segments.

Levi sources approximately 95% of product from independent contractors located in 45 countries with no single country representing more than 20% of production.

To better manage its inventory, resources and business processes, Levi continues to implement a SAP enterprise resource planning system in Asia, North America and Europe.

Weaknesses & Risks

The sales of Levi Strauss Signature Brand through mass channel retailers like Wal-Mart and K-Mart may erode margins and sales in other, more expensive, Levi product lines.

Changes in senior management could have an adverse effect on the company's ability to implement strategies.

Most of the employees in the company's United States distribution centers are covered by collective bargaining units as are most of the distribution and production employees located outside the United States. Job actions by these employees could hurt business and Levi's reputation.

Liabilities associated with pension, post retirement benefits, deferred compensation plans, and restructuring