史前一万年高清,复制杀人魔,包叙定
|
A core competency is a specific factor that a business sees as being central to the way it, or its employees, works. (Prahalad, C.K. and Hamel, G. (1990). It provides consumer benefits, it is not easy for competitors to imitate and it can be leveraged widely too many products and markets. (Prahald, C.K. et al (1990). Core competencies are particulare strengths relative to other organizations in the industry which provide the fundamental basis for the provision of added value.
Core competencies are the collective learning in organizations, and involve how to coordinate diverse production skills and integrate multiple streams of technologies. (Prahalad, C.K. and Hamel, G. (1990) The core competence of the corporation, Harvard Business Review (v.68, no.3) pp. 79-91). Levi’s core competencies were found in manufacturing, merchandising and marketing.
With regards to manufacturing, Levi has decided to do mass customization for the customers. The mass customization results in them satisfying a number of customers needs and savings cost at the same time by producing in bulk. From a strategic point, the concept is based on finding a niche market. Mass customization uses emerging communication and computer technologies to bypass the limitations of traditional mass production methods.
Therefore Levi had a core competency in meeting the customer’s needs by been more flexible and has greater choice in the market place with the help of manufacturing with the use of technology. In addition, a mass customisation model lowers the costs as well as it provides the differentiation advantage over the competitors, since the re-engineering process is often more efficient once the new technology is applied. Therefore Levi will have this competency of customer’s loyalty and brand recognition due to their needs been satisfied.
The next core competency is merchandising, Merchandising is the methods, practices, and operations used to promote and sustain certain categories of commercial activity. (Kunz, Grace (2005). In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. Levi is doing this by offering the customers a chance to find the perfect fitting jean.
Levi operation equips the store with networked PC’s and personal pair kiosks. Customers will be measured and with this technology operation and practice it results in one of 4 224 possible size combinations. The computer generates a code for the number of correspondents. This practice gives Levi a competitive advantage as they would be the first company to offer these unique resources to the customers.
Lastly you can see the core competency of Levi in their marketing. Levi is such a well known brand, and is given terms such as authentic, genuine and original. This indicates that they are widely known and considers having customer recognition. Therefore Levi is able to market to their customers that are willing to pay for the quality products. The marketing strategy allowed differentiation to be possible and to offer the customers a new product development of a perfect fitted jean.
Levi’s aspects of the VRIO framework: Valuable: Has a history of Brand Loyalty and Recognition and remains number one internationally in its markets. Rare: Has a strong branding image. Levi’s is marketed as “authentic” and “genuine” and enjoys customer support. Inimitable: Jeans are “US made” unlike competitors. Levi’s provides generous packages to employees – retention of HR. Organised: Manufacturing is key core competency and is managed to have maximum value for resources (J.F Smith, 06/22/2009).
Should Levi go ahead with the joint venture? What would you recommend and why?
Yes, Levis should go ahead with the joint venture with Custom Clothing Technology Corporation (CCTC). Levi stands to lose this opportunity to competitors if it decides to not move forward. Market research has shown that more than ? of women are not fully satisfied with “fit” of their jean, this is almost guaranteeing a market segment that will be willing to buy the perfect fit.
Low-cost and high value competition makes it necessary to create value features that would differentiate it in the eyes of the consumer. Therefore by joining CCTC, Levi will be able to get the technology expertise on how to create and capture different possible size jeans for different shaped people. Offering this to the customers will allow them to feel that they are been catered for and therefore willing to pay the price in order to feel good. This creates customer loyalty at the end of the day due to customer intimacy, Levi should ensure that the intimacy is marketed and to show the benefits.
Levi should at first enter into the proposal cautiously by choosing to enter a test phase before proceeding in joining the full scale project. The result of doing this will ensure that Levi will be making a good decision and know more about what they are getting involved with. Levi will benefit this joint venture in many ways. Firstly with mass customisation and offering the customers a perfect fit can result in Levi to better adapt to the individual needs and wishes. This means that it will result in the customers to less likely switch brands.
Levi should also consider the fact that by going into a joint Venture with CCTC and offering mass customisation it will help Levi learn directly from the customers and it will help them identify the new trends and the taste that improves the New Product Development. This is because Levi will be dealing with a variety of customers of different shapes and sizes and needs to understand that they require and look for different styles. Therefore Levi will get a hand full of people to represent the possible sizes and this creates the customer value.
This venture can allow more customers’ needs responded to and therefore by allowing the customers to participate in the New Product Development allows the product to be accepted by the market much faster. Levi will be catering for them and they will respond due to Levi identifying that there is a need for a perfectly fitted jean. Levi must understand that by doing this venture they are responding to the individual needs of the customers.
The response of one person will lead to them telling their friends, the word of mouth is a very powerful and very cheap form of communication. Levi’s Strauss can only benefit from joining the CCTC’s approach. At the end of the day it will add value to Levi’s value chain due to them catering for their customers’ needs and wants. The fundamental idea in this approach is to gain customers satisfaction and if Levi does not take this opportunity another company will.
Creating this system which is driven by the customers’ demands and specific to the exact needs of their customers CCTC can help Levi ultimately make their business be more aware and learn more about their customers and how to fully achieve customer satisfaction. Without a joint venture with CCTC and outside value chain analysis, Levi might not be able to grasp the actual scope of the opportunities that they were missing out on. This joint venture will help the company adapt to the fast growing industry and competition, it can also help the company differentiation.
Due to the fact that the competition is offering lower prices it is vital that Levi offers something unique to the customers. Levi wants to avoid price based competition because they had a history of brand recognition and brand loyalty. Therefore it would be wiser to join this venture with CCTC and create customer value and customer satisfaction. Personal pair was a jeans customisation program which will make the joint venture with Custom Clothing Technology Corporation. Together these companies can enter the mass customisation with the help of technology.
CONCLUSION:结论
A valuable lesson that can be taken from this case is how necessary it is to keep up with your brand image and customer loyalty. Being content with one niche in a market such as clothing is never acceptable and is therefore necessary that Levi makes the joint venture successful. Styles, times, and preferences are changing so rapidly, that a clothing line must be able to meet the needs and wants of their customers.
While Levi’s still had a market in the older generations, they were missing out on a huge market that likes to shop and that are looking for the perfectly fitted jean no matter what their size was. The second implication that can be applied to other companies would be their option for strategic alliance. Levi’s really needs some help in the area of brand image and by collaborating with Customer Clothing Technology Corporation, they will have a whole new consumer market.
Levi’s has learned that they cannot be comfortable in one market for too long because that alienates another market such as the younger generations. Collaborating with CCTC, the company can obtain certain advantages that can only help Levi with the competitive environment. Therefore Levi can improve its customer value chain and achieve maximum customer’s satisfaction with mass customization.
Harvard References:哈佛引用格式
Alexander Osterwalder, 2004
Barney, J.B. and Hesterly, W.S. (2008). Strategic management and Competitive Advantage: Concepts and Cases. 2nd edition. Upper Saddle River, NJ: Pearson Prentice Hall |
