Burberry: Strategy Analysis for Growth Opportunities and Threats

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Module Name: STRATEGY IN PRACTICE
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Table of Contents
Introduction......................................................................................................................................3
PESTEL Analysis............................................................................................................................3
Competitive Analysis.......................................................................................................................5
Resource Analysis...........................................................................................................................6
Value Chain Analysis......................................................................................................................7
Primary activities.........................................................................................................................7
Secondary Activities....................................................................................................................7
VRIO Analysis.................................................................................................................................8
Tows Analysis.................................................................................................................................9
SAF Strategy..................................................................................................................................11
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

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Introduction
Burberry is a luxurious British fashion brand operating from its headquarters in London,
the U.K. it designs all kinds of clothing and accessories and specializes in outdoor fashion
clothing. The company is a well-known luxury fashion brand across the globe. This report will
identify the potential threats and growth opportunities for the company by analyzing its external
business environment. It will also acknowledge the industrial attractiveness through the
competitive forces analysis of the company. The internal environment will also be analyzed to
bring out key insights into the company’s resources and competencies. The TWOS analysis will
suggest new strategies for the company’s overall growth in its international industrial market.
PESTEL Analysis
Political Factors
In Fashion industry political factors put a profound impact. Due to the strict political
regulations, the fashion industry will have to face unavailability if necessary resources that will
enhance the overall cost of manufacturing products such as cotton and more. In addition to this,
international regularities are taking part in formulation of strict rules that will affect the future
performance of fashion industry profoundly (5 threats for fashion industry in future, 2022). This
brings a threat to the company’s brand image as a responsible business.
Economic Factors
Brexit has been enhanced the fluctuation in the currency which caused sudden increment
in VAT, duty cost and other such expenses. Reason being, the fashion industry has been faced
numerous cancellations of the orders (Grose, 2021). The demand for the company’s products in
China has decreased due to the Covid-19 restrictions. Covid-19 also decreased the demand for
many luxury brands including Burberry due to the global economic stability as an impact of the
pandemic. The declining demands may bring a threat to the company of low sales and hence
affect its financial balance.
Social Factors