Strategic Analysis Burberry
LONDON SCHOOL OF BUSINESS & FINANCE
Strategic Development at Burberry
Student Name: Madhumalesh Prakash
Student ID: A4036664
Submission Date: 4th November, 2011
Intake: MBA Batch 8A
Module Name: Strategic Planning
Module Code: SP Assignment Title: Longitudinal Strategic Development Study
Word Count: 4044
Table of Contents
1. Recent past to the present: 3
1.1. Introduction 3
1.2. Business 3
1.3. Leadership and culture at Burberry 4
1.4. Strategies deployed 4
2. The Strategic Position 6
2.1. Macro-Environment 6
2.2. Industry and market structure and competitive conditions 7
2.3. Strategic capability, Resources and Competences 8
2.3.1. Strategic capability 9
2.3.2. Resources 9
2.3.3. Competences 9
2.4. Financial situation of Burberry 9
3. Strategic choice 10
3.1. Business level strategic choice 11
3.2. Corporate level strategic choice 11
3.3. Direction and methods 11
3.4. Recommendations 13
4. Conclusion 14
5. Appendix 14
6. References 15
1. Recent past to the present:
1.1. Introduction
Burberry, one of the famous designer brands in the world was started by a 21-year old draper’s apprentice, Thomas Burberry. This all started with a small outfitter’s shop in Basingstoke, Hampshire, England (The Telegraph 2011).
Burberry gained popularity during the First World War when it won the contract to supply trench coats to the British army. Later on, Burberry was also worn by Humphrey Bogart in Casablanca, Audrey Hepburn in Breakfast at Tiffany’s and Peter Sellers in the Pink Panther.
Burberry’s main mission was to sell Britishness to the world (Friedman 2011).
1.2. Business
Burberry markets its products to its end consumers through three channels: Retail, wholesale and licensing. Burberry sources and markets its apparel and accessories worldwide with major markets in Spain, America and Asia Specific which accounts to 90% its revenue and emerging markets like China, India, Russia, East Europe and the Middle
Strategic Development at Burberry
Student Name: Madhumalesh Prakash
Student ID: A4036664
Submission Date: 4th November, 2011
Intake: MBA Batch 8A
Module Name: Strategic Planning
Module Code: SP Assignment Title: Longitudinal Strategic Development Study
Word Count: 4044
Table of Contents
1. Recent past to the present: 3
1.1. Introduction 3
1.2. Business 3
1.3. Leadership and culture at Burberry 4
1.4. Strategies deployed 4
2. The Strategic Position 6
2.1. Macro-Environment 6
2.2. Industry and market structure and competitive conditions 7
2.3. Strategic capability, Resources and Competences 8
2.3.1. Strategic capability 9
2.3.2. Resources 9
2.3.3. Competences 9
2.4. Financial situation of Burberry 9
3. Strategic choice 10
3.1. Business level strategic choice 11
3.2. Corporate level strategic choice 11
3.3. Direction and methods 11
3.4. Recommendations 13
4. Conclusion 14
5. Appendix 14
6. References 15
1. Recent past to the present:
1.1. Introduction
Burberry, one of the famous designer brands in the world was started by a 21-year old draper’s apprentice, Thomas Burberry. This all started with a small outfitter’s shop in Basingstoke, Hampshire, England (The Telegraph 2011).
Burberry gained popularity during the First World War when it won the contract to supply trench coats to the British army. Later on, Burberry was also worn by Humphrey Bogart in Casablanca, Audrey Hepburn in Breakfast at Tiffany’s and Peter Sellers in the Pink Panther.
Burberry’s main mission was to sell Britishness to the world (Friedman 2011).
1.2. Business
Burberry markets its products to its end consumers through three channels: Retail, wholesale and licensing. Burberry sources and markets its apparel and accessories worldwide with major markets in Spain, America and Asia Specific which accounts to 90% its revenue and emerging markets like China, India, Russia, East Europe and the Middle
References: Annual Report (2011). Burberry: Annual report 2011, [online]. Available at: http://201011.annualreport.burberry.com/ (Accessed on 1/11/2011) Annual Review (2010) BBC news (2002). Business: Burberry’s journey through fashion, [online]. Available at: http://news.bbc.co.uk/1/hi/business/2015039.stm (Accessed on 1/11/2011) Chandler, A.D Porter, M.E. (1996). “What is Strategy?”, Harvard Business Review, 1996, November-December, p 60. Dransfield, R. (2001). Scanning the environment: Corporate strategy. Heinemann Educational: Oxford. Edgar, R. (2009). Burberry targets the Facebook generation with social network, Financial times, [online]. Available at: http://www.ft.com/cms/s/0/e7de1d54-a321-11de-ba74-00144feabdc0.html#axzz1c55heSJw (Accessed on 1/11/2011) Financial times (2004) Friedman, V. (2011). Woman in the new: Angela Ahrendts, Financial Times, [online]. Available at: http://cachef.ft.com/cms/s/0/e2f598ea-6d13-11e0-83fe-00144feab49a.html#axzz1c9fL22j7 (Accessed on 1/11/2011) Johnson, G., Scholes, K Marketing (2002). Great British brands: Burberry- Fashionable from the 1920s, Burberry declined with deferential society but is new born, [online]. Available at: http://www.marketingmagazine.co.uk/news/154758/ (Accessed on 1/11/2011) Mullins, L.J Rollinson, D. (2008). Attitudes and emotions: Organisational behaviour and analysis-An Integrated approach, 4th edition. Pearson education: United Kingdom. The telegraph (2011). Burberry: a history, [online]. Available at: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8455689/Burberry-a-history.html (Accessed on 1/11/2011) Thompson, J.L UK country profile (2011). The UK: In depth PESTLE insights. (Cover story), p1-81. Zekaria, S Figure 1: Ansoff’s Matrix, Available at: http://www.paramountlearning.co.uk/wp-content/uploads/2010/02/ansoff-matrix.jpg (Accessed on 1/11/2011)