Burberry Might Be Overlooking Russia

1527 WordsNov 11, 20107 Pages
TABLE OF CONTENTS CONTENT PAG. 1. INTRODUCTION 3 2. SWOT ANALYSIS 4-6 2a. STRENGTHS 4 2b. WEAKNESSES 4 2c. OPPORTUNITIES 5 2d. THREATS 6 3. CONCLUSION 7 4. REFERENCE 8-9 * 1. INTRODUCTION Burberry has had amazing growth in the luxury sector with increases in revenues of more than 17% in the first six months to September 2010 (Burberry Group PLC, 2010). These results were the consequence of pointing their efforts and energy in the right direction, with strategies such as “leveraging the Franchise”. As part of this strategy and to optimize their presence in the Asian Markets, Burberry has decided to enter into China as an emerging market. However, this SWOT…show more content…
If Russia is succesful with their bid it can be expected that the influx of foreign currency can, 1; recognise the brand and 2; affluence to purchase the luxury goods in the Russian domestic market. (New York Times, 2010). * Russia is likely to join the WTO (World Trade Organization) in the current year. Its the largest economy outside the 153 members of the WTO. This would improve the trade agreements between all the countries of the organization. (Wall Street Journal, 2010). 2d. THREATS: * Here’s a quote of the Russia Fashion Week (RFW) President Alexander Shumsky: ‘10 years ago we started with less than 20 shows in a season. Now Moscow generates a lot of new fashion ideas and showcases the best international talents,’ (cited by Fibre 2 Fashion, 2010). This underlines the local market sector competition that is now developing in Russia. * Retail sales in Russia dropped 1.9% for the first time since February, income fell 0.2% also, indicating a probable slowdown in the country’s economy. Anna Zadornova, a London-based economist at Goldman Sachs Group Inc. said: ‘Weaker retail sales and lower real wage growth highlight the downside risks from the inflation spike to recovery in private consumption,’ , she also remarked ”We expect GDP growth to slow significantly in the second half of 2010’. (cited by Bloomberg, 2010). This observation from a recognised economic research insitution and international bank does not provide

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