Company Analysis : L Brands Essay

1580 WordsDec 9, 20167 Pages
L Brands is a specialty retailer focusing on women’s apparel, personal care, and beauty products. Their major brands include Victoria’s Secret and Bath and Body works. L Brands, like all companies, has developed a strategy that they believe will help them be successful. A firm’s strategy encompasses its specific goals, the actions or policies to achieve these goals, and the allocation of its resources to these actions and policies. Firms try to develop a strategy that they believe will help them gain a competitive advantage over other firms in the industry. A competitive advantage is the ability of a firm to consistently earn profits above the industry average. A DuPont Analysis of a firm and its competitors helps to determine whether a firm is experiencing a competitive advantage. A DuPont Analysis shows the Return on Equity (ROE) of a firm. This is a good measure of its profitability. DuPont Analyses also provide a breakdown of ROE to examine the source of any profitability. L Brands employs a benefit strategy. This means that they attempt to provide the best benefits to their customers without necessarily focusing on keeping price down. They say that they are not selling products, they are selling experiences. They do this largely by focusing on providing high quality in-store experiences and utilizing persuasive advertising. They make use of in-store marketing images, music, and helpful sales associates to reinforce what their brand represents. This has

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