Levi’s SWOT Analysis 2022 – Levi Strauss & Co.

122 0

Levi’s SWOT Analysis Analyzes, Levi Strauss & Co., world’s largest maker of pants, noted especially for its blue denim jeans called Levi’s (registered trademark). Its other products include tailored slacks, jackets, hats, shirts, skirts, and belts, and it licenses the manufacture of novelty items. The company is headquartered in San Francisco. Few brands have survived decades of fashion trends the way Levi Strauss has. The company received its first patent for riveted jeans on May 20, 1873, and more than 140 years later, they’re still one of the world’s most popular denim brands.

           Did You Know? The world’s oldest pair of Levi’s are in a fireproof vault in San Francisco.

In 1852, Levi Strauss, an immigrant from Bavaria, opened a dry goods company in San Francisco at the height of the California Gold Rush. While he was working, he recognized a need among hardworking people: clothes built to endure anything. Davis and Strauss purchased the patent of the idea of using copper rivets in clothing on May 20, 1873. The innovation of the rivets in the jeans differentiated Levi’s jeans from others because of its increased durability. Over the years, Levi’s jeans have become more popular, initially due to its durability.

This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Levi’s.

Levi’s At A Glance – Levi’s SWOT Analysis

Company: Levi Strauss & Co.
Founders: Levi Strauss
Year of establishment: 1853, San Francisco, California, United States
CEO: Charles V. Bergh
Headquarters: San Francisco, California, United States
Employees (Dec 2020): 14,800
Ticker Symbol: LEVI
Type: Public
Annual Revenue (Dec 2020): US$1.5 Billion
Profit net income (Dec 2020): US$152.7 Million

Products & Services: Men’s and women’s jeans | Shirts | Tops | Jackets

Company Website: www.levistrauss.com

Top Levi’s Competitors 

Competitors: Lee | Wrangler | Spykar | Tommy Hilfiger | GAP | Calvin Klein | Carhartt

Levi’s SWOT Analysis – SWOT Analysis Of Levi’s

SWOT Analysis Of Levi’s analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Levi’s SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Levi’s SWOT Analysis. Below Is The Detailed SWOT Analysis Of Levi’s.

Levi’s Strengths – Levi’s SWOT Analysis

1. A hefty portfolio Of Brands: Levi Strauss has the following brands within its umbrella: Levi’s, Signature, Denizen and Dockers. They are all well-known brands that have a strong following. This aids Levi Strauss to build customer recall and boost sales year over year.

2. Strong Global presence: Levi Strauss products are available in more than 110 countries, and there are more than 60 manufacturing facilities across the globe, which increase the company’s global market  presence as well as share. This reduces the possibility of dependence too much on any particular area of market.

3. Multiple distribution channels: Levi Strauss distributes its merchandise through different sources of distribution such as the chain of stores, retailers and also online. This aids in increasing the market share of the business.

4. Youth-focused: Levi Strauss has an extremely popular image among the younger generation as it brings trendy products targeted at girls and boys in the twilight years. This helps to build its brand’s reputation.

Levi’s Weaknesses – Levi’s SWOT Analysis 

1. Over-dependence on a small number of wholesale clients: Levi Strauss is highly dependent on its 10 largest wholesalers, who make up for more than 31% of their total revenue. Any breach in contract with these companies could impact the financial condition for Levi Strauss.

2. Contract manufacturers depend on: Approximately 97% of Levi Strauss’ products are made by independent product makers. The manufacturers are situated in 30 countries. Dependence on independent manufacturing increases the risk to the business for Levi Strauss.

3. Duplicity in the brand name: Levi Strauss is a victim of duplicity in brands in the past, and this has impacted the image of the brand and can also affect sales. This has caused a lot of problems the aspects of Lev Strauss’ business.

Levi’s Opportunities – Levi’s SWOT Analysis

1. The growth of the US market for apparel: There has been an ongoing growth rate within the US apparel market, although it’s been slow. This guarantees steady increase for Levi Strauss in one of the largest markets that is responsible for approximately 22 percent of the company’s total sales.

2. Enhancing Lifestyles in emerging countries: In addition to growing per average income and an improvement in the life style of people of emerging nations, the market for apparel is likely for growth due to the growth in the demand for clothing that is branded.

3. Internet shopping: Levi Strauss has four brand-specific websites, which are the primary conduit for the internet-based sales business and also operates via various other platforms. With the growth of online retail, Levi Strauss can leverage its brand’s equity to satisfy the growing demand.

Levi’s Threats – Levi’s SWOT Analysis

1. Competitive: Being a global company in the world of apparel, Levi Strauss faces intense opposition from other global as well as local companies. With constantly changing fashion trends the brand must remain up-to-date and constantly moving forward to stay ahead of rivals.

2. Costs of labour are rising: Labour costs have grown across the globe that means higher production costs for the business. This impacts both the cost structure as well as the selling of the company.

3. eCommerce allows brand new ones to be able to: Prior to the advent of E-commerce, it was a challenge for an emerging brand to get into the market and establish its own. However, with E-commerce being launched across the world, the newest brands now have a fantastic opportunity to compete with brands like Levi’s.

Levi’s SWOT Analysis Template 

Levi's SWOT Analysis Template

This is the SWOT report that Levi’s has done. Please let us know if you have additional suggestions to add.


Let us know What do you think? Did you find the article interesting?

Write about your experiences and thoughts in the comments below.