SWOT Analysis of Levi’s

Introduction 

Swot analysis of Levi Strauss & Co. Levi’s is a US clothing multinational company. Levi Strauss was the founder of Levi’s, and he laid the foundation of the clothing company on May 01, 1853. The headquarter of the company is in San Francisco, California, USA.

Levi’s main products and services are belts, skirts, shirts, hats, jackets, tailored slacks, denim jeans, pants, trucker jackets, denim jackets, and many clothing items for men, women, and children.

According to an estimate, the annual revenue of Levi’s in Feb 2021 was 4.252 billion dollars, and it has decreased by 27.12%. Out of which, the net income of the company was -0.127 billion dollars, and it has declined by 134.27%. However, the company has employed more than 16000 employees to manage its worldwide operations.

Levi’s top competitors are Tommy Hilfiger, Spykar, Wrangler, Lee, H&M, Gap, Carhartt, Zara, Gucci, Pretoria Clothing & Caps, ThoughtSpot, Duluth Trading, Patloon, Ralph Lauren, and VF.

Today, we’ll discuss the swot analysis of Levi’s. It’s going to focus on the internal and external factors impacting the world’s leading clothing brand. Here’s the swot analysis of Levi’s as follows;

Strengths of Levi’s 

Manufacturing Units

According to an estimate, Levi’s has approximately more than 60 manufacturing units in the US, and the remaining over 25 manufacturing plants are all over the world. The worldwide production facilities prove the supply chain strength of the company.

Marketing

Levi’s uses various marketing channels for the promotion of its products and services. Like TV ads, retro songs, and social media marketing campaigns. It has allowed the clothing brand to be aware of the customers’ trends and engage with them.

Global Brand

According to an estimate, Levi’s has got more than 500 stores and the company’s products are available in over 110 countries across the world. The company’s presence in the global market amplifies its brand value and customer market share. However, access to the international market helps the company to exploit many opportunities.

Supply Chain & Distribution

Levi’s has a strong supply chain and distribution network. The clothing company uses various outsourcing and distribution channels to reach customers. For instance, the brand’s retail stores partnered with shopping malls, online, etc. It allows the clothing brand to penetrate into various markets.

Jeans & Young Image

Levi’s offers a wide range of clothing products and services to its worldwide customer market. But the company has special expertise in the production of jeans. Most important, the company has established a strong reputation of having a youthful image. The company’s target market is young boys and girls.

Brand Portfolio

Dockers, Denizen, Signature, Levi’s, and Levi Strauss & Co are the brands operating under the umbrella of Levi’s. They all are well-established brands and they help the company to diversify its brand portfolio.

Brand Value

According to an estimate by Fortune 500, Levi’s ranks at the 580th position of the world’s leading brand. However, the market value of the clothing company in 2021 is 9,559.8 million dollars.

Weaknesses of Levi’s 

Competition

H&M, Gucci, Zara, Tommy Hilfiger, SpyKar, Wrangler, and others are some of the main competitors of Levi’s. They’re competing with the clothing brand in different categories. Their market presence limits the company’s growth.

Pressure

The most significant impact of competition is to protect your brand identity in the competitive environment. It’s because almost all the competitive brands are offering more or less similar products. Therefore, it puts great pressure on the marketing and designing departments to stay ahead of the competition.

Opportunities available to Levi’s 

Western Clothes Trend

The trend of wearing western clothes has been increasing all over the world. The worldwide high acceptance level of western clothes presents a great opportunity for Levi’s to launch its clothing products in different markets and expand its customer market share.

Low Cost in some Markets

Levi’s should take advantage of the cheap labor in the developing Asian countries and outsource its manufacturing works from there. It would help the company to lower the production cost and increase profitability.

Casual Wear

The trend of casual wear is also increasing. Nowadays, people want to wear such clothes in which they would feel comfortable. Therefore, Levi’s should offer casual wear clothes to target such a market.

Threats Levi’s has to face

Product Substitution

When customers go out shopping in the market, then they have got a lot of choices of various brands to choose from. It has put the customers’ brand loyalty into question. That’s why they switch it to other brands easily.

Low Copyright Protection

Levi’s and other clothing brands are facing the severe threat of IPR issues in China and other third-world countries. Some counterfeit manufacturers steal the designs of top brands and launch them under their brand and offer it at a lower price.

Changing Trends

The trends in the clothing and apparel industry keep on changing throughout the year. Levi’s has to spend a plethora of resources on designers to keep up with the growing and changing trends.

Conclusion: Levi’s Swot Analysis 

After a careful study of the swot analysis of Levi’s, we’ve concluded that Levi’s is indeed the world’s leading clothing brand. The increasing competition, high product substitution rate, changing trends, and competitive pressure are some of the main challenges. Levi’s should expand its product portfolio and outsources its manufacturing work in order to deal with increasing cost issues.