Case 2-3: Levi's Personal Pair Proposal
weblackmanThe Decision
As Heidi leaned back and gazed outside at the rain soaked plaza, she considered the pros and cons to the proposal. The proposal carried several risks that she could not fully quantify. First, there was the ability of Levi Strauss to implement new technologies. Second, the cost savings in the proposal were based on CCTC’s estimates in their proposal for the program. Would the program still be successful if the costs turned out to be very different?Third, market research indicated that women were not satisfied about fit. How much would they be willing to pay for a better fit?
On another level, she wondered about the competition. If the program were successful, would their low cost rivals dive into this market as well? Did Levi’s have any advantage here? What if they did not move forward with the proposal? Would one of their rivals partner with CCTC?
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