Burberry Analysis of the Competitive Environment

1014 Words Mar 2nd, 2013 5 Pages
Burberry
Analysis of the competitive environment The aim of this essay is to provide brief and structured analysis of the competitive environment of a Burberry.
RENATA GECAN MILEK 19.11.2012

Professional MBA Business Core 2012-2014 Competitive Analysis and Strategy Business Core Class 3

1.

Introduction

The aim of this essay is to provide brief and structured analysis of the competitive environment of a Burberry. In the first part I will briefly present luxury goods sector, trends, and in the second part of this essay I will analyse Burberry using Porter’s Five Forces analysis. 2. Luxury Goods

Luxury goods are products and services that are not considered to be essential and are associated with affluence1. Some luxury
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Absolute luxury is required (elitism, icon, heritage, uniqueness)3. 4. History of Burberry

Burberry was founded in 1856 by Thomas Burberry in Basingstoke, Hampshire, England. Burberry brand is defined by its Britishness, authentic outerwear heritage and is globally recognised by the iconic trench coat, trademark check and Prorsum horse logo. The 156-yearold company has undergone quite a transformation since Ahrendts joined in 2006, to replace Rose Marie Bravo in the role. Bravo had taken Burberry from a stale raincoat maker to a far more fashionable brand. Ahrendts continued a process of buying out Burberry's powerful franchisees and closing its licensees around the world, an unfortunate corporate structure that had given Burberry little control over its image and ranges. She transformed Burberry's backstage IT and supply chain, a job which she admits was "not very glamorous". In a masterstroke, she relocated Burberry's catwalk shoes from Milan to London, making the
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“Defining luxury: the conundrum of perspectives“, Beta.luxurysociety.com Veblen, T.B. (1899), „The theory oft he Leisure Class. An economic Study of Institutions“ 3 „Luxury Goods Worldwide Market Study,2011, 10th Edition“, Bain and Company, Fondazione Altagamma

Professional MBA Business Core 2012-2014 Competitive Analysis and Strategy Business Core Class 3 Burberry show the highlight of London Fashion Week. Ahrendts has pioneered the use of

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