Restructuring / Turnaround Strategies Case Study

Levi Strauss in the US (Part A): Fading Denim?

Abstract:
Levi Strauss, the original blue jeans manufacturer and largest apparel manufacturer till the 1990s, has been steadily losing market share in the US since 1996. Levi was also said to have been sloppy in terms of keeping up with the latest trends in fashion and hence was taken over by competitors such as Tommy Hilfiger, VF, Gap. Part A of the case talks about this phase of Levi, from its birth. The case highlights the period in Levi’s history from the 1980s since when Robert Haas, great-great-grand nephew of the founder has been at the helm of affairs. It is his Utopian management style which experts have pointed out as the reason for the fading of the brand. Will Levi be able to stem the decline in its sales and catch up with the industry trends?

Pedagogical Objectives:

• To understand how Levi had become the largest apparel manufacturer
• To understand the effectiveness of Utopian management style on business.

Keywords : Branded Apparel Industry; Levi Jeans;Dockers; Slates; Levi's 501 jeans; Lee; Wrangler; Levi Strauss; Roberts Haas; LBO; Restructuring / Turnaround Strategies Case Study; Benevolent management style; jeans market; Supply Chain Initiative; Leadership; Global Sourcing Guidelines