Levi Strauss & Co was established in 1853 in San Francisco, California (Ristau, 2009, p.128). This company is known for the manufacture of jean wear like Dockers which is a popular wear among many youth today. In addition, the company has over the years been the biggest producer of Denim jeans that is used by many blue-collar workers within the United States due to the toughness and durability of the material used.
Levi Strauss & Co has been successful in the past due to the fact that the American consumer base has embraced jean wear as being a casual trade mark within the United States. This has reduced the risk of losing of the consumer base within the United States therefore encouraging the company to increase its production within the United States as well as keep up with the ever-evolving taste and preferences among the youth who constitute the bulk of the American consumer base. In addition, the demand for Levi Strauss products has expanded to overseas causing the company to open up stores and manufacturing plants abroad specifically in Asia, Europe and Africa. Currently, Levi Strauss & Co has successfully opened up more than 470 stores all over the world (Downey, 2009, p.34).
Though Levi Strauss & Co has been able to remain in business since 1853 due to the quality of its products and a large consumer base, the company faces the risk of operation difficulties due to two important factors. First of all, the adoption of environmental regulations within many states in which the company has manufacturing plants might force the company to change its manufacturing systems. Changing the manufacturing systems in order to comply with environmental regulations is likely to affect the industry financially. One of the remedies to environmental regulations is to engage in offshore outsourcing. This means that the company has to embark on relocating most of its manufacturing plants from developed countries like the United States, which has stringent environmental regulations, to developing countries. However, such a step requires caution in that offshore outsourcing would increase unemployment in the developed world. The other major challenge that the Levi Strauss Company faces is competition from other textile companies that produce the same kind of goods for a cheaper price. To overcome this challenge, Levi Strauss & Co has to make sure that they control both the manufacturing and the retailing of their products. The company should also capitalize on its advertising strategies so as to educate customers how to differentiate between its products and those of other low quality companies. This prevents the use of their high quality goods by other competitors to attract customers.
In conclusion, Levi Strauss & Co has been successful in the past due to the production of high quality products that counter competition from its competitors and also due to the high demand of its products all over the world. However, the company faces the challenges of adjusting its manufacturing systems to the environmental regulations in its areas of operations and also the risk of competition from other companies producing the same kind of goods.
References
Downey, L. (2009). Levi Strauss & Co. Chicago, Illinois: Arcadia Publishing
House.
Ristau, R., A. (2010). Introduction to Business. Mason, Ohio: South-Western
Cengage Learning
