Levis Strauss and Co, maker of Levi's familiar 501 and Made and Crafted brands of jeans, also makes a brand that was introduced for discount retailers such as Walmart and Kmart. Levi's strategy with the new jeans (the Signature brand) was to sell a competitively priced pair of jeans. The jeans are about one-half or less the price of the familiar 501 and Made and Crafted jeans. To get costs down Levi's: Uses cheaper fabrics and materials. Shuns costly mass-market advertising. Strictly limits the number of fits, styles, and colors.

1. Assess the new strategy at Levi. What do you think are the potential benefits and risks? 2. How will the firm's value chain and balanced scorecard change as a result of the new strategy?