Response to Maria Volodkevich Post #1 – Personal Pair Proposal
Write a 250 word response and include references.
Maria Volodkevich Post #1
What is the root of their problems in the denim market?
Levi’s problem in the denim industry was the rise of competitors and their introduction of a cheaper alternative to Levi’s brand. With other rivals sourcing production in cheap facilities overseas, they could enter the denim market with a cost advantage over Levi and his brand. Therefore, Levi needed to find a competitive edge to gain market share over the companies that reduced production costs (Cost Advantage, 2021).
How does Levi Strauss create value for its customers?
Levi Strauss creates value for its customers by maintaining a strong “social conscience” and avoiding the exploitation of disadvantaged workers overseas. Additionally, much of the company’s value rests in its long history, durable fabric, and “original” fit & feel. Brand recognition and loyalty serve as focal points of value for its customers.
Assess the Personal Pair Proposal. What is your evaluation of it from a quantitative perspective? What is your evaluation of its using the VRIO framework?
From a quantitative perspective, the Personal Pair Proposal does require the risk of cost implementation. With an initial $3 million dollars required to integrate the systems within the existing Levi systems, the software also requires additional funds to maintain the system. While this cost is somewhat minimal to the company’s overall wealth, the significantly lower inventory does help offset this initial cost. From the VRIO framework, the PPP is valuable as women desire a pair of jeans that fit their bodies the best. With regards to rare, this type of system at that time had not yet been implemented to this extent. The system and concept are inimitable, however. Yet, Levi is a well-established business and can create an organized way to implement the process, making it a sustained competitive advantage.
What is your recommendation concerning the Personal Pair Proposal?
I recommend that Levi pursue this concept. With any success comes potential failure. However, Levi is in a critical position whereby his company needs to be differentiated from other competitors manufacturing and selling jeans at a lower cost. To keep Levi’s brand as a much sought-after pair of jeans, the organization needs to step out of its comfort zone and pursue something new that sets it apart and makes its higher cost compared to competitors… Worth it! As Grome (2021) states that taking risks in any business venture has the possibility for success as often competitors aren’t willing to do the same.
References:
Cost Advantage. (2021). Monash University. Retrieved March 26, 2023,
from https://www.monash.edu/business/marketing/marketing-dictionary/c/cost-advantage
Grome, J. (2021, December 2). The Importance Of Taking Risks In Business.
Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2021/12/02/the-importance-of-taking-risks-in-business/?sh=4b6862b6555d
