Question # 1
Levis Company started a new project named Personal Pair Project envisioned a niche that would allow Levis to avoid competing against the low-cost high-volume producers. It was a jeans customization program made possible through a joint venture with custom clothing technology corporation, in Newton, Massachusetts approached Levi Strauss described the potential of its technology and suggested that together the two companies could enter the mass customization arena.
The pair personal proposal reflected a form of collaborative customization. This approach helps customers who find the array of choices in the marketplace overwhelming to narrow down their specific needs. The company enters into a dialogue with customers to help them understand why they need and is then able to provide specialized products that meet that specific need. Collaborative customizers can keep inventories of finished products at a minimum, which brings new products to market faster.
Original Levis Stores would be equipped with networked PC’s and Personal Pair kiosks. Trained sales clerks would measure customer’s waist, hips, rise, and inseam, resulting in one of 4224 possible size combinations. Once the program was underway, the proposal suggested that about half of the orders would be from existing customers. Reordering would be simplified and encouraged by the bar code sewn into each pair.
Quantitative Perspective
If CCTC were correct, this would reach the higher end of jeans market, yield stronger profit margins due to both the price premiums and streamlined production process involved. The initial proposal was to equip Original Levis stores with pair personal kiosks and specialized PC. Once the systems were worked out, this would be expanded to more than 60 kiosks across the United States and Canada. Moreover, they envisioned Opening Kiosks in London where they estimated that the product would command a premium of euro 19 over the original Euro 46 price for standard jeans. This personal proposal project will also increase the quantity of jeans of Levis in the market. It would lead Levis towards progress. The jeans would still be produced in Tennessee and shipped via Federal Express.
VRIO Framework
The VARIO analysis of the pair personal project is given below
Valuable
The project is valuable as it has increased the quantity of jeans of Levis in stores. It has also taken Levis towards profit. It increased the dead of Levis products in the market and had attracted the customers towards it and made them satisfied with the products.
Rare
This project is rare as many companies do not follow it and its attributes are deferent from many other projects, so it is very rare to find any project such that in the market.
Imitate
As this project is rare, and there are not many such projects in the market, so most of the people are interested in imitating it. However, as the attributes of this project are different, so it is costly to imitate it and do a project such that.
Organized
It is a very organized project as it has led to the progress and increase in the profit and customers of Levis so this a very organized and suitable project to increase performance.
Question #2
Recommendations
Although the new project would like some investments, there are also many cost savings in this program so the benefits of using this program are more than the loss so this process should be used as it has led to increasing in the business of Levis. So the personal proposal project is a good project that has led to the increase in the number of jeans sold as well as the loyalty of many customers. In the personal proposal no price adjustments are needed so it is also good in this perspective. In it also the same material will be used that will be used previously, so it also reduces the cost of new material, and this will also be beneficial. It is also helpful if either the products or the sub-processes in the manufacturing chain are standardized. It allows for more efficient production and inventory management, whether it be for different types of domestic uses or different markets. It would also help to integrate some technology enhanced subprocesses with existing standard labor intensive manufacturing methods.
The most beneficial aspect of personal Proposal project is that there will be less cost as compared to the previous system. There will be an increase in quality and quantity, and it will be more beneficial than the previous one so recommendations will be of using this process as there are more profits in this project as compared to the costs, so this will lead Levis towards progress.
Moreover, the quantity will be increased after using this process, and the number of loyal and satisfied customers will also increase so this will be a more beneficial project as compared to the previous one. Levis will move towards progress after using it.
