COMPETITIVE STRATEGIES

OF WALMART, NIKE AND

LEVIS STRAUSS

PRESENTATION BY:
ANURADHA KUSHWAHA
HARSHPREET KAUR
VRINDA GUPTA
 WALMART
. Wal-Mart Stores, Inc., branded as Walmart since 2008 is an
American multinational retail corporation that runs chains of large
discount department stores and warehouse stores.
The company was founded by Sam Walton in 1962, incorporated
on October 31, 1969, and publicly traded on the New York Stock
Exchange in 1972.
Walmart was the first discount store and now operates retail stores
in various formats across the world.
Wal-Mart is the largest retail company in the world which offers a
wide assortment of merchandise at EDLP in its retail stores.
WALMARTS COST LEADERSHIP
STRATEGY
Core philosophy - cost leadership focus on
their customers by offering better value for
money in terms of giving everyday low prices.
WALMARTS Efforts to procure products at the lowest prices
AGGRESIVE possible from manufacturers.
PRICING Mission to provide a wide variety of high
STRATEGY quality, branded and unbranded products at the
(EDLP) lowest possible price.
The major source for their strategy is the
economies of scale operating at a very low
cost through which its products are priced 20%
lower than those of its competitors.
 THE SUCCESSFUL COST
LEADERSHIP STRATEGY
Since Walmart is the first discount store, its strategy plays the major
role in its business and has made it the biggest retailer of the world.

The main source of its strategy is Economies of scale which which

leads to:
PROFITS- Generating more profits due to larger volumes sold
because of the lowest prices given.
SURPLUS- Reinvested in facilities (equipment, technology) .

Walmarts operations and distribution has led to the success of its

strategy as no one has such a supplier and distribution network like
Wal-Mart that allows such low prices.
 NIKE
Market leader in athletic footwear, apparel and equipment.

Works to drive product innovation for athletes and improve performance.

Mission statement is To bring inspiration and innovation to every athlete

is the world. If you have a body, you are an athlete.

The Just Do It slogan and Nike swoosh logo are inherent to consumers.
 PRODUCT DIFFERENTIATION STRATEGY
The business strategy for NIKE is a PRODUCT DIFFERENTIATION
STRATEGY ( price premium and unique product ) which boost
Nikes performance in the global industry.

NIKE emphasizes on the key strategy elements of -

Branding advertising

Design of products and customization

Exclusive customer services

High quality product

New product development

Cutting edge technology ( Colordry technology - remove H2O from

dyeing process and use recycled CO2 to infuse colour )
 HOW IT WORKS

Product differentiation helps company to boosts its profit through the

sale of different product.

Producing a number of product lines is the reduction of risk in that if

one product fails there are numerous other product to compensate for
this loss .

Licensees to produce and sell NIKE brand products aside from

athletic footwear and accessories. ( school supplies, children's clothing,
electronic media device)

Product differentiation
Different segments ( men, women and children )
Offering variety of footwear accessories and apparels ( watches, gym
bags, sport balls, skates etc )
 LEVI STRAUSS & CO.
Levi Strauss & Co. is a worldwide corporation organized into
three geographic divisions:
Levi Strauss Americas (LSA), based in the San Francisco
headquarters;
Levi Strauss Europe, Middle East and Africa (LSEMA), based
in Brussels; and
Asia Pacific Division (APD), based in Singapore.

The core Levi's was founded in 1873 in San Francisco,

specializing in riveted denim jeans and different lines of casual
and street fashion.

LS & CO. is divided into 3 sub brands i.e. Levis, Dockers and
Levis Strauss Signature.
DIFFERENTIATION STRATEGY
Early Years
Barriers to Entry
Since the patent of the rivets in jeans in 1873, the company
achieved monopoly power.

Product differentiation
The rivets on the jeans allowed for longer durability, a form of
vertical differentiation.
DIFFERENTIATION STRATEGY
Now
Levis also differentiates itself from all other competitors
through the ability to brand products through strong brand
image.

The company markets its products under leading brand names

that are among the most successful apparel brands in the
world and it is one of the most widely recognized brands in
the history of the apparel industry.
The company releases new lines of jeans through ad
campaigns with strong music association and the central
theme of the free human spirit.
Maintains its image as the American Icon and originator of
American Jeans
 ANALYSIS
The company was successful in changing in accordance with
the changing consumer preference which took a gradual path
from demanding durability towards the love for fashion.
The company has been successful in launching new jeans
range every single time with the products being accepted by
their target audience.
 REFERENCES
http://javedaslam9.blogspot.in/2015/03/cost-and-differentiation-
theory-levis.html
https://are.berkeley.edu/~sberto/Levis.pdf
https://www.stealingshare.com/pages/what-can-we-learn-from-nike-
the-secrets-to-brand/
http://panmore.com/nike-inc-generic-strategy-intensive-growth-
strategies
https://www.cleverism.com/stand-crowd-examples-differentiation/
https://www.researchgate.net/...Cost_Leadership...Strategies_Walma
rt/
https://www.ukessays.com/essays/marketing/overview-of-walmart-
cost-leadership-marketing-essay.php