An analytical report on the company Levi’s

Beginning in 1853 with Levi Strauss as the first manufacturer of the blue jean, the Levi’s company

has remained a highly regarded business earning brand loyalty through its entrepreneurial spirit. As

discussed in Appendix A, the brand currently operates in 110 countries with over 500 stores

producing high quality clothing including jackets, t shirts and chinos but are world renowned for their

jeans including the still produced Levi’s 501’s, the original blue jean. This report will focus solely on

the Levi’s brand and how it has maintained a rate of success over the past 150 years. Despite facing

the challenges of being a fashion company in an era dominated by fast fashion and ever-changing

trends Levi’s has managed to remain prominent due in part to the way it has maintained its traditional

values while adapting to the needs of the modern consumer. Furthermore, the company’s dedication

to provide excellent quality denim that lasts and that can eventually be passed down to the next

generation highlights the renewed importance of sustainability for consumers when purchasing

products (2022). Ultimately, the company exhibits the entrepreneurial spirit of its original leader but

will need to continue to personify this in order to remain a prominent player by developing alongside

the current and future fashion and cultural trends, perhaps within their online presence, or in better

highlighting all the services they offer such as their free tailor shop.

The entrepreneurial spirit embodied by Levi Strauss when he created the first blue jean has clearly

been carried on into the modern period. Strauss’ ability to find and fill a gap in the market and the

company’s ability to sustain its’ place as a global brand leader for denim highlights the innovation the

company exemplifies which contributes to its success. Furthermore, Strauss adopted the firm belief

held by successful entrepreneurs that failure once does not equate to failure overall by undertaking a

huge risk in using the last of his materials based on recommendations from consumers, highlighting

the importance of taking advantage of opportunity when it comes to creating a prosperous and lasting

business (Newbery, 2015). Whilst the risks undertaken by the company today are not within the same
bracket, the business continues to undertake strategic risks such as the implementation of new

campaigns with the assumption that these will generate new revenue streams, contributing to the

success of the company. By producing new campaigns every quarter, the company demonstrates its

creative outlook, furthermore the choice to partner with existing corporations such as the recent

Simpsons campaign, (Woods, 2022) highlights that the business takes the opportunity to collaborate

with others, in the hope that this will generate larger profit margins. Ultimately from monitoring the

business progressing at its current rate we can gather that the company is modelled on the importance

of consumers and their likes and dislikes and it can be argued that it follows the VSMV pyramid

(Appendix B), using its values including, innovation, sustainability and progress to support its vison

of implementing ethical and profitable success. In this way it embodies the idea of entrepreneurship as

the company continually strives to be the best it can be. If the company continued at this standard,

ultimately there would be a maintenance growth in revenue and the achievement of goals. However,

this success is hinged on the current consumer and manufacturing climate maintaining the same rate

of progress. Given that this is highly unlikely the business will need to continue to develop and

innovate in order to stay relevant in the modern environment, monitoring the risk factors that come

alongside originality such as failing to appeal to all consumer types and focusing on the larger

demographics they can reach, to stay ahead of competing brands (Wolke et al., 2017).

The importance of purchasing from sustainable and ethical brands has become more and more

important to the modern consumer. Many customers have become more focused on the impact of their

purchases on the planet, Levi’s ‘Buy Better, Wear Longer’ campaign (Levi’s, 2022) allows them to

highlight to their customers how they have contributed to a more sustainable industry. From

reviewing the Levi’s 2021 sustainability report (Appendix C) we can see that the brand has set clear

goals to improve its impact on the climate. By allowing the public access to this report Levi’s

attempts to take accountability for these goals and assure customers that they are choosing an ethical

brand, an astute marketing technique. As addressed by Levi’s’ CEO, Chip Berg, (Levi’s, 2021)

sustainability is also key for any business with long term plans and goals, Levi’s report highlights that

it has plans that extend into the next few decades and provides consumer with an idea how they will
operate within this. This is an excellent business strategy as it shows assurance to consumers as well

as investors. Given the importance of confidence in creating loyalty this allows Levi’s to be viewed in

a higher regard compared to other brands that offer similar services, in addition it reassures investors

that they have chosen a stable company in which to support; allowing Levi’s to continue to prosper

alongside investor sustenance (Schwetje et al., 2011).

The “Buy Better, Wear Longer” campaign also allows Levi’s to survive in the rapidity of an industry

dominated by fast fashion. As trends and styles continue to rise and fall in popularity, Levi’s

commitment to staple pieces such as the 501’s allows them to always stay relevant despite the current

designs of the season. This message targets the consumer, connecting them with the brand and

therefore ensuing they maintain a relationship despite changes in trends, perhaps evoking the

consumer to purchase other items that are more entwined with current fashion icons. Furthermore, the

innovative measure of Levi’s to provide a free tailor shop encapsulates its message of “Buy Better,

Wear Longer” (Levi’s). In this way Levi’s demonstrates the importance of creativity within a brand

by a having a service, unlike there competitors, that allows customers to feel as if their jeans will

always be made and crafted for them. Innovation has become more important as a way for business to

find a competitive edge and Levi’s could achieve this with this service (Stefan et al., 2008). However,

from analysing the company’s public and corporate website, it is clear that full use of the advertising

platform has not been used to showcase the tailorship service. It is likely that increasing consumer

knowledge of this service would allow them to reach more customers. The appeal of other denim

brands such as ‘Unspun’ offering “completely customisable sizing” (Jacobs, 2022) makes them appeal

to a wider variety of people. Whilst Levi’s does have the ability to provide this service, the failure to

make it prime knowledge is likely to result in less revenue, especially as more brands begin offering

the same thing. When purchasing high quality products customers want to ensure their getting the best

value for money; creating a service that offers them tailor made to fit denim undoubtably increases the

profit margins of the company, however it is likely that if they improved the advertisement of this

service, they would likely increase their overall revenue.

Online shopping has caused the diminishment of many popular retailers. Levi’s ability to stay

profitable despite the rise in online retailers especially given the Covid 19 pandemic and the inability

to open its shop doors, highlights its success as a business. Online shopping offers consumers the

ability to browse within the comfort of their homes. The Levi’s company also offers this option for

customers, which increases its revenue, resulting in a “fifth of Levi’s sales” taking place online in the

third quarter of the financial year in 2021 (Rigby, 2022). In an operating perspective, the brand instills

reliability by offering free delivery for members and the ability to return items for free in store or in

the post. This tactic appeals to consumers who became used to shopping online and allows them to

reach a wider variety of people. Ultimately, Levi’s online presence can be considered good given that

they have physical stores to back it up but could certainly be improved through providing customers

with a more definitive sizing guide. Whilst the company has also begun to offer virtual styling in

order to provide online customers with some of the same opportunities as in store consumers the fact

that, similarly to their tailor shop, they fail to fully advertise this attribute is likely causing them to

lose revenue. If the company continues to not showcase the advantages of choosing Levi’s over

different leading brands it is likely the business will not be able to grow and develop to its full

potential. However, if they implemented a strategy that highlighted to consumer that they offered this

service it is evident that the brand would be able to generate more profit, and lose less consumers to

the impact of online shopping.

Alongside Levi’s online presence the inclusion of the red tab membership program allows customers

to earn points on their purchases, persuading them to continue to purchase from the business (Levi’s).

As brand loyalty becomes a strategic factor in a company’s success, (Kocak Alan) Reward based

memberships have become a pinnacle structure of retail with brands like tommy Hilfiger also

introducing members clubs to create deeper relationships with the consumer. However, the red tab

club has been adapted to reach customers across the globe, offering a five-pound joining voucher as

well as extra discount on sale items, a creative way to reach more customers. Evidently, customers are

more likely to return to a store if they can receive money off their next purchases; with the need to
increase prices, due in part to inflation but also the massive loss the company faced during the covid

19 pandemic, the importance of loyalty becomes extremely important. The prominent advertisement

of the member club is a key indicator of the value it provides to the business. Ultimately the brand has

succeeded in instilling customer consistency by offering incentives that in many ways distract from

these price increase; the presence of the membership club will likely result in the brand obtaining

more customers and therefore more revenue.

Given that entrepreneurial spirit it’s so important to a company the fact that other brands such as

“Mud Jeans’’ (Mud jeans) have discovered ways to appeal to a wider variety of consumers with the

creative idea to offer the rental of jeans for people who cannot afford to buy right now, highlights that

Levi’s needs to continue its creative thinking in order to perform to its best ability. Mud Jenas, the

premium denim brand allows customers to lease a pair of jeans for approximately 11 euros per month

for up to a year, following this, consumer can choose to keep their pair or swap them for another,

renewing their lease. Furthermore, the company boast their sustainability by making the new jeans

from the customer’s old pair. While this would certainly be a large risk to undertake, if Levi’s were

able to implement an ability for customers to rent a pair of jeans for those unable to commit to buying

a pair they would likely be able to reach a new demographic of customers, generating more revenue

and profiting further off a single pair. The importance of risk is instrumental to a business success,

however, with such a large company, risk is mainly determined by the investors viewpoint (Forlani &

Mullins, 2000). It may perhaps be more beneficial for Levi’s to focus on its second-hand operations

before it undertakes enormous risk due to the current unstable climate of retail. Whilst Levi’s does

have a system for second hand clothes in the US this could be improved and brought in across their

stores globally in order to increase revenue. Levi’s second hand provides consumer with gift cards in

exchange for old Levi’s products (Levi's). The products featured on the site also include pictures and

in-depth explanations on how they appear, providing important detail to the customer and promoting

renewing products rather than throwing them away, however many of the products listed on Levi’s

second hand.com don’t differ massively in price to the original products and moreover, they currently

only offer a select number of products. The company could benefit from increasing the number of
products listed and introducing the site across the rest of their stores which would result in not only

more revenue but most likely the creation of a more sustainable chain of production.

To conclude, the entrepreneurial spirit encapsulated by Levi’s Strauss when he first manufactured the

blue jean is clearly shown to continue to be spread across the company today. As profits has shown

the business is able to thrive within a fast paced, unsteady market due to its strategic use of creating

staples that will always be valued by consumers and instilling brand loyalty through its sustainability

schemes. The inclusion of personal styling both in store and online is a useful marketing technique

that highlights to consumers that jeans can be designed specifically for them. Whilst the company

could benefit from increasing its online presence to show consumer everything it has to offer, as well

as undertaking new initiatives such as developing the Levi’s second-hand online store to reach a wider

range of consumers, ultimately from reviewing the company we can see that its innovative structure

has allowed it to remain profitable. In order to continue to be successful Levi’s will need to remain

vigilant in keeping up with current and new trends alongside its consumers; ensuring it determines

what risks can be taken within the business, to maintain a key position as a leading brand in the

modern fashion industry.

Appendices

Appendix A

Levi Strauss, along with tailor Jacob w. Davis was the first manufacturer of the blue jean is a really

inspiring entrepreneur as he utilised the last of his materials to effectively revive a failing business

and turn it into what has become a global brand leader in denim. The lasting power of the Levi’s

brand has managed to stay active in an era dominated fast fashion and quickly shifting trends,

suggesting why it has stayed relevant for almost 150 years. Currently Levi’s has over 500 stores

worldwide, making it hugely successful and Strauss's legacy has lasted throughout generations,

echoing the staying power of the Levi’s brand. I find Strauss story particularly inspiring as he was

able to find a gap in the market by listening to consumer's complaints and use this to create a

profitable and lasting business.

Pre – module task, an entrepreneurial business

Appendix B

VSMV pyramid to recalibrate growth in business

Appendix c

https://www.levistrauss.com/sustainability-report/

Levi’s sustainability report 2021

Bibliography

Forlani, D., & Mullins, J. W. (2000). Perceived risks and choices in Entrepreneurs' New
Venture Decisions. Journal of Business Venturing, 15(4), 305–322.
https://doi.org/10.1016/s0883-9026(98)00017-2

Jacobs, M. (2022, October 6). How ethical is Levi's? Good On You. Retrieved December 17,
2022, from https://goodonyou.eco/levis-ethical/

Kocak Alan, A. (n.d.). Brand Trust and brand affect: Their strategic importance on Brand
Loyalty.
httBRAND_TRUST_AND_BRAND_AFFECT_THEIR_STRATEGIC_IMPORTANC
E_ON_BRAND_LOYALTY. Retrieved December 17, 2022, from
https://www.researchgate.net/profile/Alev-Kocak-
Alan/publication/293638632_BRAND_TRUST_AND_BRAND_AFFECT_THEIR_ST
RATEGIC_IMPORTANCE_ON_BRAND_LOYALTY/links/56f1348b08ae5c367d4a9
8e9/BRAND-TRUST-AND-BRAND-AFFECT-THEIR-STRATEGIC-
IMPORTANCE-ON-BRAND-LOYALTY.pdf

Levis. (n.d.). Levi's red tab membership. Levi.com. Retrieved December 17, 2022, from
https://www.levi.com/GB/en_GB/features/red-tab-members-program

Levi's. (n.d.). Levi's® Secondhand Trade-in for Gift Card. levisecondhand.com. Retrieved
December 17, 2022, from https://help.levi.com/hc/en-us/articles/360050122792-Levi-s-
SecondHand-Trade-In-for-Gift-Card

Levis. . (2021). Levis Strauss & Co. 2021 Sustainability Report . Levisstrauss.com. Retrieved
December 17, 2022, from https://www.levistrauss.com/wp-
content/uploads/2022/09/LSCo.-2021-Sustainability-Report.pdf.

Mud jeans . (n.d.). Easy go - used stone. MUD Jeans. Retrieved December 17, 2022, from
https://mudjeans.eu/collections/women-jeans/products/easy-go-used-stone

Newbery, J. P. (2015, August 24). https://www.huffpost.com/entry/entrepreneurs-are-

losers_b_8032348 . Retrieved December 17, 2022, from
https://www.huffpost.com/entry/entrepreneurs-are-losers_b_8032348 .

n/a, n/a. (n.d.). Levi's tailor shop . Levi.com. Retrieved December 17, 2022, from
https://www.levi.com/GB/en_GB/features/tailor-shop

Rigby, C. (2022, June 8). Levi's sees a fifth of sales take place online, while Shoppers Buy
More direct from the brand. Internet Retailing. Retrieved December 17, 2022, from
https://internetretailing.net/strategy-and-innovation/levis-sees-a-fifth-of-sales-take-
place-online-while-shoppers-buy-more-direct-from-the-brand-23816.

Schwetje, G., Vaseghi, S., & Gentilozzi, J. (2011). The business plan: How to win your
investors' confidence. Springer.
Staff, U. (2022, September 22). Levi's® launches "Buy better, wear longer" 2.0. Levi Strauss
& Co. Retrieved December 17, 2022, from
https://www.levistrauss.com/2022/09/21/levis-launches-buy-better-wear-longer-2-0/

Stefan, S., & Becker, J. (2008). How does creativity Impact business processes? In M.
Rosemann (Ed.), Proceedings of the16th European Conference on Information
Systems. (pp. 1–13). essay, Acton, T, Golden, W, Conboy, K, Tuunainen, V, & van der
Heijden.

Sustainability report. Levi Strauss & Co. (2022, September 27). Retrieved December 17,
2022, from https://www.levistrauss.com/sustainability-report/

Wolke, T. (2017). 6 Risk controlling. In Risk Management (pp. 290–317). essay, Walter de
Gruyter GmbH. Retrieved from
https://ebookcentral.proquest.com/lib/exeter/reader.action?docID=5144613&ppg=1.

Woods, T. (2022, February 18). Levi’s x Simpsons Collaboration On The Way For SS22′.
Retrieved December 17, 2022, from https://pausemag.co.uk/2022/02/levis-x-simpsons-
collaboration-on-the-way-for-ss22/.