Essay about Burberry Strategic Analysis

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Pages: 13
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Table of Contents
Executive Summary1
Strategic Review
A)Strategic analysis of Burberry
i. Environmental Analysis………………………………………………………………………………………1-3 ii. Resources and competence analysis………………………………………………………………….3-4 iii. Purpose/culture/stakeholder analysis4 B) Recommendation for future development
i. Three options suggested using TOWS Matrix5-6 ii. Chosen strategic option6
Appendices and Bibliography7-13

Executive Summary
This report is a strategic review of Burberry PLC and analyses the Environmental factors that surround the business. It looks into Resource, competence and culture analysis. Each section analyses Burberry and critiques the models. A SWOT analysis and TOWS matrix are then formed to outline three …show more content…
They outsource to smaller European firms and the USA for perfume production. If expansion for further development is the option Burberry have the finance but may have to outsource.
Human resources- Burberry currently employs 5700 people worldwide; these include specialists in the departments of designing, marketing and I.T specialists.
Intellectual Property- Burberry is currently ranked 100 most valuable brands and is worth $3,110 million dollars. Its main competitors Gucci and Louis Vuttion are above them. It has the unique Trademark design and the Prorsum Logo.
Threshold competencies-Burberry achieves its distribution levels through the operation of company-controlled wholesale arrangements with third party stockists and also through licensing agreements with partners firms in Japan.
Design capabilities- Burberry are able to attract the best designers to work for them. The appointment of Christopher Bailey as a design director brought in extensive fashion experience from other fashion houses, such as Gucci. This enhanced team launched the Burberry Prorsum brand which was high premium, high fashion collection that allowed Burberry to compete with the prestige rivals.

Value Chain
With reference to appendix 4
The value chain is designed as a way of separating business systems into value-generating activities to understand how a firm can develop a competitive advantage. Burberry utilises its own fabric waving operations for its
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