Business Strategy

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Analysis of impact of the macro environment of Burberry....................................................3
LO 2.................................................................................................................................................6
P2 Internal environment and capabilities of Burberry.................................................................6
LO 3...............................................................................................................................................10
Porter’s five force Analysis.......................................................................................................10
Ansoff’s Growth Strategy..........................................................................................................10
LO 4...............................................................................................................................................11
P4 Strategic planning.................................................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Strategic planning in business is the process of establishment and documentation of a
specific direction where short- and long-term goals and objectives of the company is enlisted and
appropriate plans and strategies are devised for achievement of those goals (Bryson and et.al.,
2018). The devised strategies could be applied to the strategic, tactical and operational role of
Burberry for its effective and efficient contribution to development. Burberry is an international
fashion house headquartered in London, UK which deals in high end consumer goods around the
globe like leather goods, trench coats, fashion and clothing accessories. This report will aim at
analysing the macro level impact upon Burberry and its business strategies, assessment of
internal capacities and competitive analysis of the company. The report will also device a
strategic plan for Burberry through application of various strategies models, tools and
techniques.
LO1
P1 Analysis of impact of the macro environment of Burberry
Company profile: Burberry plc designs, distributes and deals in clothing and fashion apparel
and accessories. It is one of the most innovative companies which has a global reach with
multiple distribution channels. It caters to high end consumers and the most popular clothing
item are trench coats (HU and XIANG, 2019).
Core values: The three core values that inspires the corporate and business strategy of Burberry
are protection, inspiration and exploration.
Vision: To position the company firmly in luxury fashion, sharpening and positioning in most
rewarding markets and riving a sustainable growth to deliver attractive returns.
Mission: Burberry’s mission is to maintain its integrity and vitality and continuously develop
business relevant to ever evolving fashion markets.
Business strategy: Burberry has pursued an internal expansion strategy in order to widen its
market outreach, brand equity and profitability. The company focuses on leveraging franchises
and accelerating growth of the retail market (Bryson and et.al., 2018).
A business strategy refers to the course of action, plans and a set of decisions that are
aimed at achievement of busines objective through in-depth analysis of external and internal
factors, tools and frameworks. In order to attain strategic intent, direction and company
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objectives, a business strategy mobilises resources, secure advantageous position, utilises
opportunities and takes a set of actions to attract customers, compete with rivals, strengthens of
operations and performance. Various frameworks can be used to evaluate strategies such as
Pestle, SWOT, stakeholder analysis, porter’s five forces, Ansoff matrix model, bowman’s
strategy clock, VRIN and value chain analysis, porter’s generic strategies and horizontal
integration.
SWOT analysis: The internal environment assessment for Burberry is as follows:
 Strengths: The brand is considered iconic, has high brand equity, in recognised for its
innovation, distinct checkered pattern in clothes, trench coats, has global presence,
celebrity endorsements and high brand value and awareness, has received royal warrants
many times (Abalkhail, 2019)
 Weaknesses: The product line is quite limited and only focussed on fashion accessories,
apparels and beauty products in fashion segments. It depends on Asian markets for a
major portion of its revenue.
 Opportunities: Changing lifestyle and demand for premium goods and clothing in
developing countries like brazil, India, Malaysia etc. and development of emerging
markets. Burberry can also expand its product line by differentiation.
 Threats: Intense competition from high end luxury brands like Gucci, Prada, Chanel,
Louis Vuitton. Threat of changing lifestyles and consumer purchase behaviour, threats
from imitation and fake clothing products.
PESTLE analysis: The external environment assessment of Burberry is as follows:
 Political factors: Burberry gets affected by political decision-making that takes place in
various countries where it operates. The political situation also impacts how the
company’s operations will get impacted. These are tax regulations, restrictions on import
and export, tariff regulations etc. Brexit has adversely affected the supply chain and
logistics for movement of clothing products across European countries (HU and XIANG,
2019).
 Economic factors: The economy of the country of operation affects major business
decisions of Burberry in context of labour costs, inflation rate, unemployment level,
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