Why did Levi's consider selling their jeans at Wal-Mart

Subject: Consumer Behavior

Paper Model: APA

Paper Type: Article

Total Words: 1626

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Why did Wal-Mart consider selling Levi's jeans at Wal-Mart?

Wal-Mart is one of Levi's buyers. Whose bargaining power is bigger

What generic strategy (among the following four: (1) broad target / cost leadership, (2) broad target differentiation, (3) focused target / cost leadership, and (4) focused target / differentiation) is Wal-Mart following? Justify your answer


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Levis and Wal-Mart are two famous companies in United States, and in limelight due to quality, branding and services for customers. Levis intends to sell its jeans at Wal-Mart to gain numerous benefits. Levis is been brilliant in clothes quality and branding, and has sustained its brand equity in different varieties in clothes. Regarding Jeans, they have to improvise, and collaborate with Wal-Mart to increase the sales.

Levis management is looking to increase profitability, as jeans have not sold as expected in recent years. Management just wants to share the success with Wal-Mart, as customers make early decisions in different Wal-Mart stores. Profitability, sustainability, strong brand image and share of profit are benefits for Levis at Wal-Mart. Wal-Mart is one of the best retail chain is the world, and Levis is going to take advantage to increase the sales of jeans here. (Girard, 2003)

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