STRATEGIC MANAGEMENT

Strategic Management-Burberry

Strategic Management-Burberry

Executive Summary

In 1856, Burberry was established by a young entrepreneur named Thomas Burberry. The company has experienced phenomenal growth since its establishment as a small outerwear shop in Hampshire. The company focused on developing new and innovative wear for its local residents and for sportsmen and by the year 1888, had thrived to the point of taking its own patent fabric named Gabardine.

This report attempts to highlight the strategic positioning of Burberry, a brand that is currently associated as a leader in fashion industry and how it adopted a host of cognitive strategic approaches to help it climb the success ladder since its decline in 1997. While a host of critics emphasize the role of dynamic leadership in the establishment of Burberry as a premium brand, it is worth mentioning here that Burberry owes its success to the business strategy adopted by its CEO Rose Marie at that time. The strategy was focused upon creating a brand with high global recognition and premium brand equity.

The report also presents an analysis of the internal and external environmental factors surrounding the company in light of the SWOT and PEST analysis. An analysis of the Porter's Five Force Model, competitive Model and the growth strategy adopted by the company has also been presented.

This report presents a comprehensive analysis of the strategies adopted by Burberry in the past two decades while also focusing on its current practices. The indication of the company's past performance presents a more concrete analysis of how strategic management helped Burberry in its restoration. As highlighted below, the new strategy began with a religious focus on understanding the core strengths and weaknesses of the company, its position as a British heritage brand and overall DNA of the company. The company adopted a host of value drawing strategic approaches to bring about a change in the brand equity. These have been enlisted below for further clarity (Jackson and Shaw, 2006, Pp.72-82).

Introduction

Burberry is one of the rare companies in the fashion industry that has managed to develop and to sustain its position in terms of both quality fabric as well as style. Gabardine maybe viewed as the initial success step that guided Burberry up the success ladder. This unique fabric is breathable, waterproof, developed with utmost care and found initial usage in the British military trench coats and Hollywood.

Burberry's famous check which is currently considered as hallmark of any Burberry product is a registered trademark and was established in the year 1924 as a lining to the same trench coats. Over the years, Burberry successfully adopted a growth strategy that enabled it to popularize its brand through famous stars and shows including Casablanca and The pink panther. This success was later translated into various products embellished by the same trademark. These included umbrellas, luggage and scarves.

By the year 1970, Burberry's success remained unparalleled, adopting to more aggressive expansion strategy by opening flagship store in the New York. The expansion in the US market continued throughout ...