Burberry Group plc: Overview, Porter Five Forces, Segmentation, Targeting and Positioning Approach

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Overview..........................................................................................................................................3
Porter five forces..............................................................................................................................3
Segmentation, Targeting and positioning Approach.......................................................................5
Segmentation...............................................................................................................................5
Targeting......................................................................................................................................5
Positioning...................................................................................................................................5
REFERENCES................................................................................................................................6

Burberry Group plc
Overview
It is the British Luxury fashion house situated in London, England and has its outlets
across the globe. Main fashion house of this business emphasize and in distributing the trench
coats, fashion accessories, cosmetics and the fragrances. The company was established in the
year 1856 by Thomas Burberry focusing on development of the outdoor attire, fashion house has
been moved in high level of fashion market with developing first of its respective Kind Fabric
named as Gabardine, which entirely seen as waterproof and breathable exclusively made for
specific brands.
Porter five forces
It is referred as the strategic management tools that analyze an industry and understand
the underlying levers of the profitability accounted within an industry. The managers of Burberry
plc makes use of this tool for enhancing the competitive advantage and he long run profitability
in respect of personal and the household property sector.
New entrant threat- Economies of the scale is very difficult to achieve within fashion
industry that is in which the Burberry group operate its business. This makes easier for those
companies who are involved in producing larger capacities for gaining an advantage over cost. It
also made the production more and more costly for the entrant firms. Thus, this made the entrant
of new threat as the weaker force. Product differentiation in this industry is seen as strong where
an entity within this industry sell its differentiated products instead of the standardized product.
The consumer also seeks the differentiated products and there is strong focus on the customer
services along with advertising. All such factors made the new entrant threat as the weak
workforce in this industry. The capital needs in this industry are reflected as high, therefore, it
becomes difficult for new firms to set up its business with such high expenses in addition to
research and the development cost. Moreover, government policies in this industry or segment
require strict legal and the licensing which need to be fulfill by new entrant prior to starting their
business or selling their products and the services. Thus, this makes difficult for the new entrant
in joining an industry, making new entrant as weak force.