Burberry Case Study

1. According to the data in Exhibit 13, in 2001, Burberry's sales accounted for 5.2% of the market share, ranking fourth in the competition. This figure is close to the third, 6.4%, but the second is still 9.1%. In the market segment 14, Burberry in the accessories market share of only 4% of market share, ranked eighth. Accessories market, the third share of 8%. On the other hand, Burberry in the clothing market share is relatively strong, 3%, ranked third. Clothing market first, accounting for 9%. In view of these data, Burberry is expected to have an unstable market position. In the long run, this position is easy to be beyond others, but it is difficult to catch the above competitors. To sum up, I think Burberry's competitive position is long unsustainable and lacks a comprehensive and market leader.

2. In this case, Bravo has made the following changes. First, the market to raise funds. It is a good strategy to store enough money to deal with potential business risks. second. Bravo makes vertical integration of Burberry by expanding its manufacturing position to brand and retail links in the value chain. It is also a risk mitigation strategy, which makes Burberry in the value chain has a better control and price argument power. And through the synergies between sales and manufacturing, Burberry can also have a better ability to deal with the industrial business of fashion business. Bravo's other change is to adjust the brand image, hoping to provide more attractive for the young customers Burberry, while retaining Burberry's core customer base. As part of the complementary strategy, product line, marketing and new brand portfolio will be completed together. Unlike the two strategies mentioned above, I think such a strategy will exacerbate the company's risk. Given that the brand will be brand-based, it will focus on all customer preferences for the product, so brand repositioning is always a high-risk strategy. Any minor changes in all customer preferences will be exaggerated for the huge changes in Burberry sales, which will bring great uncertainty to the company.  

3. In the brand, Burberry each sub-brand is to meet customer needs in a way. For example, Prosum's brand has a highly customizable, innovative fabric and quality and detail of the harmonious collective features. Assuming to attract potential customers who are fans of the Burberry brand, but do not want to bring labels out of date. On the other hand, the London brand is to maintain Burberry design and quality of the main unique features of the core label, lasting history, which is considered to meet the needs of most customers. And in the sales channel, each sub-channel represents a different business model with unique risk and return characters. For example, all of the company's stores are highly controllable and reflect changes in the business environment. According to the data in Exhibit 1, its sales account for about one-third of total sales in 2000-2003. However, Burberry may also need to be managed and operated. In contrast, the license will enable Burberry to earn a higher profit by requiring a third party to do business. In accordance with Exhibit 1, the license sales accounted for about 1/10 of the total sales in 2000-2003. But this sales model has also been badly controlled by Burberry, where third parties may not be able to fulfill qualified products and services as the company does.