Comprehensive Business Strategy Analysis Report for Burberry PLC

This report provides a comprehensive business strategy analysis of Burberry PLC, examining its market positioning and competitive advantages. It utilizes various strategic frameworks, including the Ansoff Matrix, BCG Matrix, Porter's Five Forces, Porter's Generic Strategy, VRIO framework, and McKinsey 7S model, to evaluate the company's performance and strategic choices. The analysis covers aspects such as market penetration, product development, market development, and diversification strategies. It also assesses Burberry's competitive landscape, including key competitors and the bargaining power of customers and suppliers. Furthermore, the report delves into the company's value chain, product life cycle, and financial performance based on a balanced scorecard perspective, offering insights into its financial performance, customer loyalty, internal processes, and organizational capacity. The report also includes references to external sources, such as marketline.com, to support the analysis.

Running head: BUSINESS STRATEGY
Business Strategy
Name of the Student
Name of the University
Author notes

1
BUSINESS STRATEGY
Ansoff Matrix
Market Penetration
 The company has started to invest in technological field to penetrate new markets
 Online selling, social media campaigns and E-commerce has increased
 Re-launching famous garment for existing markets
Product Development
 Accessories and handbags development for customers
 Products are developed to increase the uniqueness and brand identity
Market Development
 Opening their product selling for new markets like China, Middle East and India
 Increasing business in luxury sectors
Diversification
 5% of the runway collection of the brand would be available in the stores
(marketline.com. 2020)
 Monogramming and other exclusive product to sell the products in new markets
BCG Matrix
Stars
The company’s star product is the trench coat that is in trend from its initial days. The
customers consider the trench coat to be prestigious.
Question Mark

2
BUSINESS STRATEGY
The accessories of the company are the question mark as they do not have a string market
share. This part of the business helps the company with 39% revenue but has not been able to
achieve much in past few years.
Cash Cow
The growing section of the company is the scarfs in the accessories section (marketline.com.
2020). The demand of the scarfs are growing as no other reputed companies have brand like
Burberry’s.
Dogs
The products like tablecloths, eyewear and some products like that do not require substantial
investment. But the company need to liquidate these cash as there is no big market share for
the company products.
Porter Five Forces
New Entrants
The treat of new entrants in the luxury cloths and accessory sections are comparatively low.
Mainly the new companies are been supported by the capital investors and other e-companies
are a challenge for company.
Customers
The bargaining power of the customers are not strong. The luxury products and trench coats
of the company are sold in their stated price.
Suppliers
The distributors of the company has been changed a bit that possess certain management of
the suppliers’ issues.

3
BUSINESS STRATEGY
Substitutes
Competitors in the market are strong. The consumers always get options to buy form their
stores as well.
Competitors
The main competitors of the company are Ralph Lauren, Gucci and Prada. (marketline.com.
2020)
Porter’s Generic Strategy
Porter generic strategies are used in order to gain competitive advantage in the market. The
company Burberry uses differential focus as their competitive strategy. The main reason for
choosing this strategy in the luxury brand reputation. The company has to develop unique
products in order to compete with known names like Prada, Ralph Lauren or Gucci. In their
venture, the company has been able to pocket two Royal warrants and British fashion Award
(2010). The company uses celebrity endorsements for their marketing and have great CSR
approaches.
Porter diamond
Chance Firm
Strategy
Factor
Conditions
Demand
Conditions
Supporting
industries
Government
The
company
Burberry has
been
influenced
by the
The firm is
developing
their
products in
order to
capture the
The
company
resources in
the suppliers
and the
distributors
Demand of
the company
products are
high in the
domestic as
well as in the
The highly
competitive
markets keep
the company
to
experiment
The company
is well aware
of the
governmental
and legal
policies

4
BUSINESS STRATEGY
technological
innovations
and got the
chance to
expand their
business in
the sectors as
well.
market that
is unique.
The Trench
coats are the
most popular
product of
the company
along with
the scarfs
that are
offered by
few luxury
brands. This
way, the
company is
trying to
penetrate
their
customers
towards their
products as
well as is
taking care
of the
existing
are quite
impressive.
Other than
that this
company
uses
technology
to reduce
their
production
cost and
make it more
sustainable.
At the same
time, it
invests in its
human
resource
management.
international
market. The
luxury
fashion
brand is one
of the known
big name of
fashion
world all
across the
world.
and research
their fashion
offerings.
fashion
industry.

5
BUSINESS STRATEGY
markets as
well.
VRIO framework
Valuable
The company has many valuable resources of its own and some of the products also could be
marked as valuable. The financial resources, human resource, local food products of the
brand, patents, cost structure and the distribution channel, all adds to the value of the
company.
Rare
the type of resources and supports the company have in their manufacturing is definitely rare.
The employee skills of the Burberry company different and rare resource.
Imitable
The supply chain and the financial structure of the company is hard to manage. Also the
research and development that the company uses is quite costly to imitate.
Organisation
The brand name of the organisation is high and it is famous for its quality and designs in the
fashion industry.
Mckinsey 7s
Strategy
The company uses product development and diversification as their main strategy.
Structure

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BUSINESS STRATEGY
Marketing, management, operations and product designing are the basic structure of company
supply chain.
Systems
The company objectives and missions are the core indicators of the company system.
Style
Burberry deals with the customers with high fashion sense and manufactures high end
fashion products.
Staff
The company has a well-trained and skilful staffs to operate their business in national and
international markets
Skills
Fashion designing and iconic trench coat are the result of employee skills. Other than that the
company have skilled employees in management and finance management.
Shared Value
Employees share a value of customer satisfaction and brand reputation building.
Value chain
The company logistics and product distribution is done through three mediums- company-
based ware housing, direct shipments and third party logistics.
Life cycle
Intro- Burberry Body Fragrance
Growth- Children’s wear

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BUSINESS STRATEGY
Maturity- Trench Coat
Decline- Accessories other than scarfs
SAF
Suitability
The product is suitable for the high end fashion consumers. The luxury brand is known for its
quality.
Acceptability
As a luxury fashion brand, the products and offerings of the company is quite logical.
Feasibility
The company products have high cost products and premium quality products.
Balance Scorecard
Perspective Focus
Financial The company’s financial performance is
based on the known products and their
selling. The ROI is high and the costs are
invested in internal development.
Customer Customers are loyal to the products. The
service rating is 7 in 2018.
Internal Process New product development is prime focus
Organisational Capacity Employee retention is high so is the
creativity level of the employees.

8
BUSINESS STRATEGY
References
marketline.com. (2020). Strategy, SWOT and Corporate Finance Report. Available at:
https://store.marketline.com/report/mlrt27974fsa--burberry-group-plc-strategy-swot-and-
corporate-finance-report/