ECommerce - Levi Strauss: key reasons for the failure of its B2C site, consider and explain how the company might have utilised its existing B2B e-commerce to expand successfully to B2C

1.0         Introduction

The Internet has been compared to the California Gold Rush of 1849 in which Levi Strauss create a Fortune 500 fellowship by planning miners with clothing (White Paper, Building an E-commerce Network). Levis managed to reap from the opportunities of the California Gold Rush. However, in an attempt to achieve the same achiever with the Internet and ecommerce, Levis failed to succeed. This news report investigates key reasons for such failure and identifies generic critical success factors as a guide for other business who wishes to comprise in the path of ecommerce. ü

2.0         Levis

In the 1990s Levis Strauss was well regarded as a clothing brand by fashion minded four-year-old consumers. However since then, market share has dropped 16.9% and gross revenue have rock-bottom $1.1 billion from 1996 to 1998. The reason for such poor performance was charge on missed opportunities on changes in fashion and non meeting new tastes. The cool image of the brand was also slipping. The company was criticised for focusing too much on re-engineering the company, which took focus get rid of the product. In order to reconnect to young people, the company clique up a community orientated web site that would modify feedback from consumers that would lead to marketing decisions (Oz, 2002 p141).



Levis expected that the site would help set them apart from competitors (Olsen and Wolverton, 1999). ü

In 1998, the web site offered the consumers the ability to purchase products unaccompanied on the Levis web site. This upset key retailers who were prohibited from merchandising Levis and Dockers from their own web sites (Caylor, 1999).

Just under a year later, Levis announced that they were closing the web site after poor sales and cost of running. The online sales were taken over by retailers Macys and J.C. Penneys.

3.0          list Reasons...

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