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To: Jurgis Bekepuris who wrote (1077)	2/25/1999 2:02:00 AM
From: Tomato	Respond to of 4691

Thanks Jurgis. I was beginning to think I was invisible. ;-)

To: Jurgis Bekepuris who wrote (1077)	2/25/1999 8:26:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 4691

Jurgis, great post re: Levis vs. "The Inevitables" I would add a couple more things. One is the nature of the purchase. What you want in an inevitable is a product which only costs a little that somebody purchases very frequently. A Coke costs less than a dollar. A Gillette razor is something you use every day. The consumer is less likely to price shop on a purchase like that. Also the nature of the competition. Levis faces a price conscious consumer, even though their product is priced very reasonably for the value the consumer gets out of it. But there's always going to be somebody with a decent quality product driving down price in that business. Count up the competitors Levis has who are reasonable alternative purchases. Gap, Lee, Polo probably a few others. Then ask yourself how many competitors Coke and Gillette and Wrigley have who are in their league. I won't even look at another brand of razor or gum. Coke has Pepsi, but they both play essentially the same game. This is a very difficult question, and one we should keep exploring. Maybe the way to get at the answer is to start with a well known brand which does not generate excess profitability. Barnes & Noble or Chevrolet, for instance. Another problem with Levi Strauss is that it has always been run half as a business, half as a force for social good. If they were a public company, they would have gone offshore years ago. JJC