You’re right that there were a variety of factors that led to the decline of Levi’s. This includes increased competition from Gap and the growth of “designer” denim such as Diesel, Energie, and G-Star. Low-cost denim from Wal-Mart and JC Penney’s also was a factor.

Still, the core problem, in my opinion, is that Levi’s tried to broaden their positioning in an effort to compete with other brands. Instead, they needed to reinforce their core positioning as the original, very high-quality denim maker.

Levi’s was always the answer to the following question in the customer’s mind:

“Where do I go for a solid pair of jeans that will last forever?”

When Levi’s broadened their positioning in effort to be competitive, they attempted to own the answer to these additional questions:

“Where do I go for basic clothing?”
“Where do I go for a basic pair of jeans?”
“Where do I go for designer denim?”
“Where do I go for really cheap jeans?”

But other companies already owned the answers to those questions: Gap, Diesel, Wal-mart. In addition, Levi’s even lowered the quality on their classic 501s in an effort to compete in price. In doing so, they almost purposely weakened their original positioning as a high-quality denim maker. It’s no wonder that Levi’s has little relevancy and meaning for customers today.

I am not saying that you should not be narrow. I (most of the time) agree with that. However don’t prove it with something that is not proof.

This is not only on this article, it applies to many business books I have read. Don’t believe things just because people have ‘proof’. Read a lot, experience a lot and make your own judgments.

If you want proof, your best bet is to buy Harvard Business Review, although even their studies are also not always scientifically sound.

Just my $0.02

Patrick