Monday, June 24, 2013

Porter’s five forces model – Company: Levi Strauss & Co.


Bargaining power of buyers – High
Switching cost from Levi’s brands to other brands like Pepe etc., very low.
No customized product or standardized product sizes and styles in every country.

Bargaining power of suppliers – Low
Mass production Company (Produces in bulk of various models and brans of Levi’s)
Wide spread or global presence of manufacturing firms of the company

Threat of new entrants – low
No government policies to protect Levis from others to enter into the market in almost all the countries

Degree of rivalry – High
Many brands and low cost players in the market with various stylish products
(Other brands like Spykar, Lee, wrangler, Tommy Hilfiger, Pepe etc.,)

Threat of substitutes – High
Customers many number of substitute products like casuals, winter wear based on climate conditions etc. based on the needs of the customer.