The shutdown of Levi's 11 US plants and the layoff of 1000 employees came true after its two announcements.
There are other competitors in the markets that produce similar products.
Levi's other bands also have a slight drop of sales.
Ã¢Â Â¡. Statement of the problem:
Because of management's oversight of the demands of teenagers, Levi's is losing its attraction for young consumers. Missing this age group leads to a sharp decrease in teen sales as well as sales among other age groups.
High cost caused by the failure of Special Reserve
When Special Reserve turned out to be a failure, Levi's had already put a large amount of money into designing, raw materials, advertising and distributing
Levi's is also confronted with the increased competition caused by top-end designers and low-priced retailers.
Affected relationships with distributors
The failure of Special Reserve could also harm the relationship between Levi's and its distributors.
Due to the overstock and unpopularity of Special Reserve, distributors may think about devoting more shelves to profitable products of other companies.
Non-attractive packaging and labeling of all products
The packages and labels of Levi products are not attractive to young people. The first impression of a product would influence specific groups of consumers to buy it.
Management lacks new ideas and independent opinions
It seems that Levi's is losing touch with the market. A lack of new ideas and independent opinions means management does not know clearly about what is going on in the market. Thus, their responses to the external environment will be slowed down, and it is very possible they will not make decisions based on the current situation. Also, management may lack new ideas about the problems they are facing.
Ã¢Â Â¢. Implications
a) On Personnel
The layoff of 1000...