Burberry Case Study

1906 WordsFeb 1, 20118 Pages
BURBERRY Introduction Rose Marie Bravo, CEO for Burberry from 1997 until now (2003). Changed company from “heavily reliant on licensing and distribution ”(1997) to “leading luxury brand”(2003) Revenue increase: £225 million in 2000 almost £600 million in 2003. She has been able to successfully steer the company through an initial public offering of 22.5% in 2002. History: Founded in 1856 by 21 year old Thomas Burberry, who opened a draper’s shop and soon invented gabardine, a waterproof and breathable fabric that was chosen to be official coat of British Army in World War I. In 1920’s Burberry check pattern – a camel, black, red and white plaid design was introduced and it became registered trademark. Celebrities (Humphrey Bogart and…show more content…
Bravo noted: “Five years ago task was to fix a brand that was broken. Today, task is to manage the popularity in a way that lays the foundation for long-term growth.” Burberry – Answers to Questions * Compare Burberry’s market position relative to that of its competitors, including Polo, Coach, Armani and Gucci. Is Burberry’s competitive position sustainable in the long term? Why or why not? Currently Burberry holds very competitively favourable position in comparison to Polo, Coach, Armani and Gucci bringing the lifestyle and fashion together in one luxury brand that is functional, aspirational, quality and accessible. The downside of such positioning in the market is having to compete against not one direction in fashion industry but many at the same time, while trying not to lose core values of the brand. * Because demand tends to be unpredictable in the world of fashion, the fashion business is inherently risky. In this context, consider the various changes Bravo made upon her arrival at Burberry. To what extent have these changes exacerbated or mitigated Burberry’s risk profile? Bravo made several changes in the company product profile adding more brand portfolios of continuous and fashion-oriented products that would be of interest not only to core customers – old males, but would also attract young generation, celebrities and fashion-lovers while keeping the main image of the company. Through

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