COMPANY ANALYSIS

Company Analysis: Burberry

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Abstract

The paper analyses the company Burberry. It discusses its rich history and background of over 150 years. Moreover, the paper discusses how the company went from completely going down and out in the luxury goods industry to re-launching itself into one of the most prolific apparel and accessories brand of the 21st century. The paper also provides a detail SWOT analysis of the company. Furthermore, the paper also provides a detailed PEST analysis of the luxury goods industry in which the brand is positioned. It also talks about the strategic decision making that company partake in order to re-launch itself at the turn of the century.

Table of Contents

Abstracti

Introduction1

Discussion2

Company History and Background2

Company's Internal Strengths and Weaknesses (SWOT Analysis)3

Strengths3

Weaknesses3

Opportunities4

Threats4

The External Environment(PEST Analysis)4

Political Trends4

Economic Trends5

Social Trends6

Technological Trends6

Strategic Decision Making6

Conclusion7

References8

Company Analysis: Burberry

Introduction

By 1998 financial analysts described Burberry as “An outdated business with a cachet of almost zero” the brand image had become old fashioned and the product the domain “of middle aged, fashion conservative men”(2004). It was the successful positioning and segmentation of Burberry that kept it alive for over hundred and fifty years. However, Burberry's brand popularity started weakening from the 1960s due to the existence of less class conscious people living in the society that did not want to look or dress like the upper class. Nonetheless, after the tumultuous period of 1997 where annual profits decreased by 37 million pounds, Burberry's management did some hard thinking and got themselves a new Chief Executive Officer. The new CEO, American Rose Marie Bravo, recruited young blood in the company in the form of a new designer Roberto Menichetti, and together they gave Burberry a complete makeover, and within a couple of years Burberry was named as British classic design collection of the year in 1999, in its maiden visit to London Fashion Week. This was the period that took Burberry from going down and out to a complete turnaround, from plummeting sales and profits to steady increase and stability in the sales and profits. Although, Bravo has long gone from the company but the company seems to be doing well from the perspective of sales as well as profits (GREAT BRITISH BRANDS: Burberry - Fashionable from the 1920s through to the 1960s, Burberry declined, 2002).

Discussion

Company History and Background

The Burberry group is engaged in designing, sourcing, manufacturing and distributing menswear, women's wear, children's wear and accessories through a network of retail, wholesale and licensing channels worldwide. The group recorded revenues of £1,280 million in 2010 with an operating profit of £171.1 million compared to an operating loss of £9.9 million in 2009 (Argenti & Foreman, 2002).

Burberry was founded in 1856 by Thomas Burberry an inventor of a tear resistant, weatherproof yet breathable fabric he named Gabardine. Gabardine was especially suited to military needs and led Burberry to design an army officers raincoat which became standard issue service uniform in the 1900's. The term 'Trench coat' was coined during the First World War and by now ...