Essay on Burberry's Resources and Capabilities

2579 WordsJan 2, 201311 Pages
The Analysis of Burberry’s Sustainable Competitive Advantage base on its Resources and Capabilities Introduction Burberry is a British luxury brand founded by Thomas Burberry in 1856, which design, sources manufactures and distributes high quality apparel and accessories for men, women and children. Burberry “has been defined by an overt Brutishness, a trio of instantly recognizable icons (the trench coat, the trademark check, and the ‘prorsum’ knight logo), and a deft creativity that ensure its designs are timeless.” (Vollmer and Premo, 2012) In 1998, Burberry has been described as “an outdated business with a fashion cachet of almost zero.” (Strategic Direction, 2005, P22) the product of trench coat of Burberry is a fashion…show more content…
Product: Product is core competence of Burberry, because all the investments (resources and capabilities) were using to produce products and distribute to users, which is the key point of making profit. The standard of Burberry is high quality, unique style and fashion. Burberry has a very clear and unique positioning as the authentic British luxury brand, which is one of the key success factors of Burberry. A unique position is very important for a firm, because other competitors cannot easily copy it and different new products were launched at different time by Burberry, which can always keep its brand unique and competitive advantage. Burberry launched 6 new brand levels---Burberry prorsum, Thomas Burberry, Burberry accessorise, Burberry London, Burberry Blue and Black. Different brand levels focus on different target customers, which can increase the sales. Burberry owned a London line, which is the most core ready-to-wear range of Burberry, and more than 450 lines provide womenswear each season, also more than 330 lines offered menswear. Both womenswear and menswear gained a huge of turnover. The Burberry London line also supported Spanish and Japanese market, in 2002, 40% of Burberry’s wholesale customers were from Spain or Portugal. (Birtwistle, 2004) Apart from apparel, other products also contributed to Burberry’s turnover, such as,
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