Business Strategy Analysis of Burberry

Business Strategy

Table of Contents
.........................................................................................................................................................2
Executive Summary ........................................................................................................................3
1. INTRODUCTION ......................................................................................................................4
MAIN BODY...................................................................................................................................4
2. Business Situation Analysis ........................................................................................................4
2.1 Brand introduction ................................................................................................................4
2.2 Current analysis.....................................................................................................................4
2.3 Current business operating structure and business model of distribution. ............................5
2.4 SWOT analysis .....................................................................................................................6
2.5 Pestle analysis of Burberry....................................................................................................7
2.6 Ansoff model ........................................................................................................................8
2.7 Stakeholder Matrix ................................................................................................................9
3. Strategic Positions .....................................................................................................................10
3.1 Porter's 5 forces model ........................................................................................................10
3.2 Porter' generic model ..........................................................................................................10
BCG Matrix ..............................................................................................................................11
Market mix of Burberry comprises of :.....................................................................................11
CONCLUSION & RECOMMENDATIONS................................................................................12
REFERENCES..............................................................................................................................14

Executive Summary
The brand taken for analysing the current situation in the marketplace is Burberry. Firstly
the brand was introduced in terms of its history. Then their mission, vision, aims and objectives
were specified and its life cycle phase was also determined, the company is in the growth stage
and the customer segment was also determined. There are various motivations for the customers
to come to Burberry and the company also focuses on the unmet needs of the customer. In the
next part the company's operating structure and business model was discussed.
To analyse their current market situation various internal and external analysis were done such as
SWOT, PESTLE, ANSOFF and stakeholder matrix. To understand their strategic position
porter's five forces model is used and also porter's generic strategies is also used.

1. INTRODUCTION
The purpose of the report is to analyse the current market situation of Burberry by
conducting various analysis such as Pestle, Swot, Stakeholder matrix, Ans off model for macro
environment and porter's 5 forces model with their pros and cons. For devising the strategic
planning for Burberry porter's generic strategies, diversification will be used. Also, customer
analysis will be done based on segments, unmet needs etc. The research was conducted based on
secondary source.
MAIN BODY
2. Business Situation Analysis
2.1 Brand introduction
Burberry is a UK based luxury fashion brand which was founded by Thomas Burberry. The
company was founded in 1856 and initially the focus was on the development of outdoor attire,
but they later moved into the high fashion market. In 1879 Thomas invented Gabardine, a kind of
fabric which was completely waterproof and breathable. In 1888, Gabardine was patented and in
1891 the brand moved into the first London store at 30 Hay market. In all the years from 1892 to
1913 many adds on and innovations took place in the brand. From 1914 to 1918 during the first
world war they supplied various apparel and equipment to the armed forces. And in 1920 the
company became a publicly quoted company for the first time. And various changes and
innovations were introduced in the brand in all these years. The mission of Burberry is to
maintain their integrity and vitality of their brand. They also aim to develop the business which
becomes relevant to consumer tastes and evolving markets. Their main values are to protect,
explore and inspire. The products offered by Burberry are accessories, clothing, cosmetics,
perfumes. The business life cycle of Burberry is categorised in growth stage as their revenues
and profits are growing continuously as they strive to innovate and add something new to the
fashion (Cooper, 2019).
2.2 Current analysis
Burberry has segmented its market based on demographic segmentation as their product
prices are too high therefore, they target higher income group. Demographic segmentation is
dividing the target market based on certain characteristics such as age, gender, income group etc.
they have also segmented their market based on Psychological characteristics as they also focus
on lifestyle, producing for customers who have a traditional, heritage and legacy taste with