International Running and Competition of Burberry - Case Study Example

The paper "International Running and Competition of Burberry" is a wonderful example of a case study on business. Burberry Group Plc can be considered as one of the leading luxury fashion houses based in Britain. The company has its own branded stores across the world and is also involved in selling to third party stores through concessions. The trademark of the company has gained immense popularity worldwide. The company got listed itself on the London Stock Exchange and is also a constituent of the FTSE 100 index (Annual report, 2012).

According to it is the 77th most valuable brand in the world for that year. The luxury fashion industry in the world has become highly competitive as several leading organizations, such as LV, Hermes, Gucci, Channel, Burberry, Prada, and many more. The recent financial crisis and global economic recession affected the economic environment of the world especially the European countries. Now, people are trying to avoid the consumption of luxury fashion accessories and products due to low disposable income and the limited purchasing power of people.

The fashion industry is very much competitive and the leading companies like Burberry have a high focus on the implementation of unique and effective business strategies to gain a competitive advantage and increase the market share. The adoption of different strategies of several organizations within the industry is helping them to gain potential competitive advantages. The key reason behind buying trend of luxury fashion apparel and increasing purchasing power of people of developing countries like the United Kingdom and other European countries is faster reform of economic slowdown due to GFC and recent Eurozone inflation.

Therefore, the demand for these luxurious fashion accessories and products is increasing significantly. For example, the apparel, accessories, and luxury goods in the UK market increased 3.6% in 2012 to reach a value of $83,178.1m and it is expected to increase 15.8% by 2017 to $96,314.3m (Global Business Browser, 2013). Burberry is one of the leading Britain-based luxurious fashion brands. In addition to this, the organization uses iconic and popular British faces in order to endorse the brand.

The organization is known for strong product differentiation and high quality of the products (Peng and Chen, 2012).