Levi Strauss & Co is a clothes and apparel manufacturing American multinational company. Levi Strauss founded the clothing brand in 1853. Today, we’ll discuss the BCG matrix of Levi’s; four growth-share matrix analysis example of quadrants; stars, cash cows, question marks, and dogs.
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The BCG matrix of Levi’s would focus on the four growth-share matrix analysis example of quadrants like stars, cash cows, question marks, and dogs. Here’s Levi’s BCG matrix growth-share matrix analysis as follows;
BCG Matrix of Levi’s
Let’s discuss the four growth-share matrix quadrants in the BCG matrix of Levi’s; they’re as follows;
Stars of Levi’s
The star quadrant in Levi’s BCG matrix growth-share matrix analysis comprises such products and services that have higher market share and higher growth rates. They contribute significantly to the sales, revenue, and profitability of the clothing and apparel brand. However, some of the main star products and services of the clothing brand Levi’s are as follows;
I-Denim Clothes, Jeans, Jackets
According to an estimate, Levi Strauss has achieved the highest market share of 38% in the denim market and the company plans to reach 48% by 2028. The company has earned a significant market share in the denim products market with an increasing growth rate. Higher market share and higher growth rate make denim the star products of Levi’s.
II-Footwear & Accessories
According to an estimate, Levi’s has a market share of approximately 5.35% in the global apparel, footwear, and accessories market. The clothing brand has earned a significant market share in the footwear and accessories market with an increasing growth rate. It allows you to cover its expenses and focus on new projects.
Cash Cows of Levi’s
The cash cow quadrant in Levi’s BCG matrix growth-share matrix analysis consists of such products and services that have higher market share and lower growth rates. They contribute significantly to the sales, revenue, and profitability of the clothing and apparel brand. However, some of the main cash cow products and services of the clothing brand Levi’s are as follows;
I-Levi Strauss Men’s Products
According to an estimate, Levi Strauss men’s products contribute roundabout 65% of the total sales of the company. The men’s products of Lev’s have earned a significant portion of the market share, and their growth rate is slower due to market saturation and tough competition.
II-Levi’s
Levi’s is the top-selling and revenue-generating brand of Levi Strauss and Co. According to an estimate, it contributes roundabout 87% of the total market share and revenue of the company with a bit slower growth rate due to the tough competition and market saturation.
Question Marks of Levi’s
The question mark quadrant in Levi’s BCG matrix growth-share matrix analysis outlines such products and services that have lower market share and higher growth rates. They have the potential to contribute to the sales, revenue, and profitability of the clothing and apparel brand; if the company fixes the weak areas. However, some of the main question mark products and services of the clothing brand Levi’s are as follows;
I-Circular 501
Levi’s introduced a new line by the name of “Circular 501” in 2022; because it employs 50% of the material from recycled denim fiber. Its market share is slower, but its growth rate is higher because the customer market prefers recycled products that would have a limited impact on the environment.
II-Levi’s Cottonized Hemp
Levi Strauss introduced a new product line by the name of “Levi’s Cottonized Hemp” in 2021 with the focus and intention of environmental sustainability. It employs limited water and doesn’t damage the soil in the production and manufacturing process. The reason it has a higher growth potential is because the world’s is moving towards environmental sustainability.
III-Dockers, Signature and Deinzen
Dockers and Signature by Levi Strauss and Denizen both are subsidiary brands of Levi’s and their revenue contribution to the parent brand is 5% and 6% respectively. They have the potential to become the next star products of the company if the brand increases their market share.
Dogs of Levi’s
The dog quadrant in Levi’s BCG matrix growth-share matrix analysis includes such products and services that have lower market share and lower growth rates. They don’t contribute to the sales, revenue, and profitability of the clothing and apparel brand; instead, they consume a lot of capital resources of the company. However, some of the main dog products and services of the clothing brand Levi’s are as follows;
I-Beyond Yoga
The revenue contribution of Beyond Yoga is approximately 2% to the parent brand Levi. It has a lower market share and a limited growth rate. In other words, it is not contributing to the revenue and profitability of the brand.
Conclusion: Levi’s BCG Matrix Growth-Share Matrix Analysis
After an in-depth study of the BCG matrix of Levi’s; we have realized that Levi Strauss and Co. is the world’s leading clothes and apparel manufacturing brand. If you are learning about Levi’s BCG matrix growth-share matrix analysis; then you should keep in mind the abovementioned four quadrants; stars, cash cows, question marks, and dogs.
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