Burberry Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Weakness

Costly products
No entrance in new product category as of 2003
Somehow exclusive
Too much English fashion appeal
Low presence in non-exclusive markets

People across the globe are now looking for less costly products. There is a fact that exclusive products are quite expensive and they are only bought by the potential customers, but Burberry has a vast range of products for all segments which isn’t in the reach of all potential customers. These products are relatively expensive and are out of reach. Bravo and her team realized that they must enter into new product category, but by the year 2003 there was no as such entrance. One of the core weaknesses which they possess is that their products are too much English fashion appealing. Since their products are exported globally so they cannot completely rely on English fashion. Despite of the vast product range there products are not available in the non-exclusive markets because of price and brand posting issues. Targeting the youngster in now the part of their strategy, but going with such premium prices might not support their plan and strategies.

Opportunities

E-commerce.
Social media
Build brand loyalty my communicating across globe.
International expansions
New categories.
Further Innovations.
Make it less exclusive.
Decrease price to increase market share.
“Check” design.

There are several opportunities which can be grabbed by Burberry. In this 21^st century people are now moving towards the E-commerce industry. Such products like wallets, handbags, perfumes and shoes can be sold via the internet. People usually prefer not to travel long for buying such products and try their level best to order online, so this can be an excellent opportunity for Burberry to grab. Moreover to get the maximum output from global expansion they need to communicate in a real effective manner of the people from different locations. Furthermore, they must now enter into a new product category which would give them a first mover advantage by taking the help of their well established brand name. Although they have a remarkable product range but they need to recognize the additional needs and wants of the people across the globe. This “Check” design which gives them around 25% of total sales can be used as a potential opportunity because people like such “Check” design products. They can launch new products by using the similar “Check” designs so that they need not to work very hard to market those particular products.

Threats

Enormous competition.
Outdated Trends.
Substitute products.
Other brands engaging people in social media.
Sometime negative reviews related to the brand.
Customers get bored from conventional products.

Like in every industry, there has been a huge completion here as well. People across the globe try new brands and products, even regardless of exclusivity. Ralph Lauren, Gucci and coach are doing an exceptional job, therefore Burberry need to plan their strategy accordingly. In this industry other than perfumes and such accessories, product usually gets outdated and as a result company can face some serious loss. When it comes to the purchasing of casual clothing or shoes so people try their level best to get the best possible and updated product as per the current trend. In such situations, companies must avoid making too much inventory and try their level best to introduce products which are up to the mark as per fashion related needs and wants. By the year 2003 there social media presence was quite low. Many of the brands across the globe are now building separate strategies for social media advertising and marketing purposes.

Financials

There financial statistics have been sound and they are able to achieve success in terms of profits year to year. To just have a look at their financial achievements, let’s take an example of the fiscal year 2000 in which they earned a handsome revenue of around £225 million and by the fiscal year 2003 this revenue grows exceptionally well and touched a mark of £600 million. As we can see in the exhibit 1, in the fiscal year 2001 there total revenues were around £428 million, which is far greater as compare to the revenue of fiscal year 2000 that is £225 million. In the fiscal year 2002 it can be seen from Exhibit 1 that they had a revenue of £499 million, which is a handsome figure, but as compare to their previous growth in revenues, this is a bit slow. But right in the next fiscal year of 2003 they again get the tremendous momentum back and hot a profit of around £599 million............................

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