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Levis Strauss and Co, maker of Levi's familiar 501 and Made and Crafted brands of jeans, also makes a brand that was introduced for discount retailers such as Walmart and Kmart. Levi's strategy with the new jeans (the Signature brand) was to sell a competitively priced pair of jeans. The jeans are about one-half or less the price of the familiar 501 and Made and Crafted jeans. To get costs down Levi's: • Uses cheaper fabrics and materials. • Shuns costly mass-market advertising. • Strictly limits the number of fits, styles, and colors. Required: 1. Assess the new strategy at Levi. What do you think are the potential benefits and risks? 2. How will the firm's value chain and balanced scorecard change as a result of the new strategy?

Operation Management, Management Studies

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