Unformatted text preview: Customer Financial performance Order backlog Gross profit ratio Customer satisfaction Net income Market share Sales growth by product and region P2-41 1 Whereas Levi Strauss has historically used a strategy of differentiation, the new Signature line uses a cost leadership strategy. The potential benefit is an opportunity to reach cost conscious consumers with the new line. The risk is that historical customers of Levi's differentiated products will switch to the new low cost line, an issue called cannabilization. 2 Value chain is unlikely to change much as the process by which low cost jeans are produced is likely to be very similar to the process used to product differentiated products. The balanced scorecard is likely to change to reflect the new strategy. Measures of quality and new features are likely to be de-emphasized. In contrast, measures of cost are likely to increase in importance: cost per yard of fabric, advertising cost per $ of sales, etc....
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This homework help was uploaded on 04/18/2008 for the course ACCTG 250 taught by Professor Rabe during the Spring '08 term at Luther.
- Spring '08
- Decision Making