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Report based on strategic review of an organization Burberry - Coursework Example

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The paper undertakes a strategic review of Burberry, first undertaking an environmental analysis of the firm via the use of PESTEL and Five Forces as tools to unearth relevant factors such as technological and social factors that impact the future prospects of the firm, and to…
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Report based on strategic review of an organization Burberry
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Download file to see previous pages The external analysis also reveals the enviable position of Burberry and its competitors in a high-margin industry that is also relatively impervious to the threat of new entrants. This owes partly to the iconic nature of the brand, and the prestige and high brand equity that the name enjoys in high fashion. The internal analysis on the other hand, making use of the value chain analysis in the main, reveals a firm that excels in those activities that add value to its brand, namely in design, in marketing, and in certain key aspects of its supply chain, including logistics, sourcing, and distribution, the latter evidenced by its complex distribution channels mix. This foregoing analysis is then used to come up with recommendations for future strategic actions for the firm, and finds that there is room for the company to explore each of the strategic options presented in the Ansoff matrix to come up with a four-pronged strategy to achieve growth, profitability moving forward (Professional Academy 2014; Jurevicius 2013; Google 2014; Reuters 2014; Yahoo! 2014; Chesters 2012; BBC 2012; Doran 2012; Porter 2008; Institute of Management Accountants 1996; LuxInnovation 2008; HJMBD.ie 2012).
Burberry is in the business of fashion wear, with an outer wear focus and a brand image that is strongly associated with being British It is positioned as a brand of luxury, focusing on key iconic items of British wear, including the trench coat which it has elevated into the status of iconic items of British-ness (Burberry 2014). The primary business channels for distribution are retail and wholesale, with 70 percent accounted for by retail sales and 30 percent by wholesale sales, for about 2 billion British pounds in sales in 2012-2013 (Burberry 2014b). A third channel consists of licensing. The company is present in digital stores, brick and mortar stores, prestige stores in different markets around ...Download file to see next pagesRead More
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