Burberry Strategy

2479 WordsJan 27, 201310 Pages
INTRODUCTION It is important for every business to clearly understand how resources and capabilities affect firm performance. As Grant (2005) defined, resources are the productive assets owned by the firm and capabilities are what the firm can do. In fact, companies that have sustainable competitive advances have been developed and exploited based on their internal resources and capabilities. Furthermore, they have successfully exploited external environment. In this essay, I will explore the topic area of ‘Resources & Capabilities’ with regards to a UK’s fashion group; the prominent designer label, Burberry GRP. In particular, the research will focus on the Strategic Business Unit of Burberry; understanding and explaining how they…show more content…
Fréry (2006) adds to this view and describes core competencies as the basic building blocks for a firm’s corporate strategy. Burberry have two key core competencies in Brand Name and Digital Innovation. Brand Name With a luxury fashion brand such as Burberry, brand name and reputation are extremely important. Burberry has gone through many ups and downs on the path of development and it has many competitors that include: Coach, Polo, Armani, Chanel and Gucci and so on. While Gucci focuses on luxury accessories, Coach concentrate mainly on the production of bags ( as does Chanel) and also produces accessories that range from watches and shoes to scarves and dog collars, and Chanel focus on bags. Armani’s and Polo’s marketing positioning is more focused on clothing. Burberry has succeeded in penetrating both the accessory and luxury goods. Moreover, Burberry’s resources include its high brand equity, its popular trench coat product and its signature check design. It is has a long history serving with the soldiers of World War I and it has been well received by the Royals; once by Queen Elizabeth II and once by Prince Charles. This means that customers now acknowledge them as the supplier of products to the royal family (Instyle, 2012). Referring to Burberry, customers immediately think of a luxury, high quality, and diverse fashion. However, in 1997, the new Burberry management knew that they

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