Essay on Business Analysis of Burberry

Managing Info and Technologies
Burberry
(Assignment 1)

1.0 Introduction
“Headquartered in London, England Burberry is a British luxury fashion
house. Burberry was founded in 1856 by Thomas Burberry 21-year-old,
a former draper's apprentice, he opened his own store in Basingstoke,
Hampshire.”
“Thomas Burberry originally focused on the development of outdoor
attire, then they move into the high fashion market developing a fabric
called Gabardine which is completely breathable and waterproof, and
exclusively made for the brand”. In the year of 1891 the company open
they first shop in the Haymarket London, nowadays with stores open in
59 countries. Until 1955 Burberry was an independent family-controlled
company, then was reincorporate. In 2005 the GUS plc become
the company's former majority shareholder.
“Burberry is listed on the London Stock Exchange and is a constituent
of the Financial Times Stock Exchange 100 Index which is a list with the
highest market capitalisation. In 2015, Burberry ranked 73rd
in Interbrand’s Best Global Brands report, alongside Louis Vuitton
and Prada”.
“The company main fashion house focuses on distributes ready to
wear, trainers, fashion accessories, fragrances, sunglasses and
cosmetics”. “Burberry has positioned its brand in the mind of consumers
to be functional luxury.” “
They maintains a product line with great width and depth consisting of
many products.”Their products fall into one of the two main categories:
fashion or continuity”. “Fashion products are designed to be responsive to
fashion trends and are introduced on a collection-by-collection basis.”
Continuity products have life cycle that are expected to last for a number
of years.””Burberry also has three primary collections: womenswear,
menswear, and accessories.” “With so many different products offered in
different collection and the fashion versus continuity of Burberry products
the product mix is very great, and this contributes to the positioning of
the brand.”
“Burberry has many competitors that include: Coach, Polo, Armani, and
Gucci.” “Relative to that of Burberry competitors, they have positioned
themselves very well in the mind of consumers.””Coach primary
positioning is on handbags, but also they have accessories that range
from watches and shoes to scarves and dog collars.””Coach is not even a
player in the top 10 luxury good players, is just simple more affordable
and more accessible to the general population.””Polo’s marketing
positioning is centred more towards clothing.””While Polo was a number
two player in the top luxury brands, has a great brand equity and is well

stablished in the mind of consumer, they have lower price then Burberry.
””Armani, another competitor of Burberry, place 8th in the top 10 global
luxury goods, only focus on apparel the brand and maintains a strong
luxury position on the market.””Gucci is also place in the top 10 global
luxury goods but his marketing position is towards luxury accessories,
they captured 12% of the accessories market share and where the
highest price brand for accessories.”
“Overall, Burberrys competitive positioning is suitable over the long
term.””While brand like Coach and Gucci focus more on accessories and
Armani and Polo focus more on the apparel market, Burberrys has
succeeded penetrating both the accessory and apparel market while
remaining a luxury good.””
2.0 PESTEL
“The main purpose of PESTEL analysis is to understand what external
forces may affect your organization and how those factors could create
opportunities or threats to your business. PESTEL analysis help you
understand current external influences on the business so you can work
on facts rather than assumptions.”
2.1 Political Factor
“The political factors in the Burberry PESTLE Analysis can be explained
as follows:”
“Burberry operates, across the world and not just in London. Since it
operates on a large scale in these countries, it needs to abide by the
various rules and regulations laid down by the various countries.””The
higher the political stability in a country, the better it is for ease of
operations.”’Brexit has left behind a uncertain environment, where the
companies functioning in the country are under the dilemma as to what
are the rules that will change, and what will be the effect of the same on
their profitability, Investors has reduced their investments in these
countries, since there prevails a uncertainty regarding the change in
regulations.””Burberry’s business is impacted by several political factors.”
“The high tax rates imposed by certain companies on foreign goods has
led to increase in the cost, leading to a lower profitability.””In certain
developing and underdeveloped countries, there are various first copies
of the brand available, that further affect and disrupt the sales to some
extent.” These countries are the ones where the rules and regulations
related copying of products is lenient.”

“Meanwhile, Brexit brings benefit to Burberry that enhanced the notion of
Britishness and the brand image of Burberry (Marian 2016).”
(Burberry® Official | British Luxury Fashion & Beauty, 2021)
2.2 Technological Factor
“ With changing trends, Burberry has managed to stay up to date.”
“Various social media platforms that are utilized by the brand, to enhance
its image, and improve sales.” “The company believes in working in
synergy with the social media today will help one stay in the competition.
If this feature of sales is missed, then it is only a matter of time, for a
company to become obsolete.” “Online shopping is another aspect that
Burberry focuses on. “The use of various e-commerce platform to
increase its reach, various social media platforms to generate reviews of
its products, and the use of various analytics in order to predict the future
trends based on the current scenario and need.”
“If the company is willing to stay in the market for long, it should focus on
introducing AI into its retail segment, that may assist the shoppers with
their shopping.”