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
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.
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 technological innovations and got the chance to expand their business in the sectors as well. | The firm is developing their products in order to capture the 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 markets as well. | The company resources in the suppliers and the distributors 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. | Demand of the company products are high in the domestic as well as in the international market. The luxury fashion brand is one of the known big name of fashion world all across the world. | The highly competitive markets keep the company to experiment and research their fashion offerings. | The company is well aware of the governmental and legal policies fashion industry. |
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
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
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. |
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/
