Strategic Analysis of Burberry: Key Issues and Competency

STRATEGIC ANALYSIS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1) Key strategic issues faced by firm and reason why they are considered strategic issue....4
2) Role of resources and key capability of the organisation in gaining competency and
competitive advantage............................................................................................................7
3) Assessment of competitive strategy in addressing strategic issue..................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
Appendix........................................................................................................................................18

INTRODUCTION
Strategic analysis or management helps firm to come up with different strategies that are
implemented by company in order to achieve its major goal and objectives. The planning and
application of strategies are initiated by higher authority of management on the behalf of owner
(Armstrong and et. al., 2015).
Definition: The scheme are made by proper analysis of internal and external environment in
which organisation work and compete. It has become one of the crucial part of organisation as it
helps them in sustaining in the market for very long time. Strategic analysis is done so that
company can have proper management of its resources and have maximum utilization. This
would help them to achieve goals and objectives of firm. In current study, we have taken
Burberry into account which a public firm is well known for its luxury fashion products (Baaij,
2016)
Company has achieved success in fashion world because of their unique idea and creativity; their
unique invention of clothes what makes them different from other luxury brand.
Size of firm: Owing its existence in more than 60 countries and having presence with 461 DOS
and 48 franchise stores across the globe. It gains major revenue from Asia Pacific region i.e.
39% of total revenue. However, company has witnessed a drop in sale in American region.
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The worldwide annual revenue of firm was amounted to 2.77 billion GBP in year 2017, while the
market capitalisation of the cited firm was recorded £8,112.30 million, in year 2016. Among this,
77% of revenue is drive from retail business and remaining from wholesale segment.
Presently it employs 9828 manpower at different location across the globe.
Objective: The main aim of firm is to offer quality products to the customer by assessing their
requirement. Further, it aims to be e-commerce leadership with excellence in operation.
Market growth: The Company has come long way in year that global revenue of firm was 716
million which in current time has turned into 2766 million GBP. Adjusted profit before tax in
year 2013 it was recorded £428 million which has reached £462 by year 2017. (Burberry in
luxury fashion industry 2016). The company has witnessed a growth of mere 2% in 2017 which
signifies that appropriate strategy and tactics must be considered by Burberry in order to boost its
growth rate.
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