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CASE FOR ANALYSIS

Levi Strauss’s Goes Global

This case demonstrates how a company can pursue a transnational

strategy. Levi Strauss has located production facilities around

the globe and customizes its products to local tastes. Foreign

subsidiaries are responsible for marketing. It is also

transferring knowledge abroad. To implement its strategy, Levi’s

established a network structure. Design is performed in the U.S.

and foreign partners produce and distribute products.

1. What global strategy is Levi Strauss pursuing? Is it

effective?

Levi Strauss is pursuing a transnational strategy. Levi’s is

seeking to both reduce costs and provide customer

responsiveness. Production facilities are located around the

world to take advantage of low cost foreign labor. However,

Levi’s wants to tailor its jeans to local customers; foreign

subsidiaries are responsible for marketing. For example, Asia

may offer more smaller size jeans. Other countries desire

various colors. Moreover, Levi’s transfers knowledge to its

subsidiaries. For example, marketing knowledge learned on

Decker’s in the U.S. was transferred to Europe.

2. What structure does Levi Strauss use to implement its

strategy?

To implement its transnational strategy, Levi Strauss uses a

network structure. Design is performed in the U.S. and foreign

partners produce and distribute products. A partner will be

replaced if it doesn’t meet Levi’s standards.

Analyzing the Organization

Students will examine the domain that the organization serves,

the market that it competes in, and the strategies used to

create value for its stakeholders.