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The Burberry Company (Burberry Group Plc); Women’s Wear Strategic Business Unit

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A strategic Analysis

The Burberry Company (Burberry Group plc); Women’s Wear Strategic Business Unit

Word Count: 2,919.

Executive summary
This paper offers a strategic outlook of the Burberry group plc (Burberry) company, a major manufacturer and distributor in the UK dealing with luxury clothing and other fashion accessories. The analysis unmasks the strategy behind the company being a pacesetter in the fashion industry especially since commencing online distribution in the UK in 2006. To achieve this, the paper applies the strategic analysis through; PESTEL analysis, SWOT analysis, value chain analysis, Porter’s three generic strategies and five forces of the market. The company has for centuries cemented its activities and most recently it took direct control of distribution of its products by offering licenses to distributors. On analysis of the UK’s fashion industry, various factors emerge as propagating the success of the company. Majorly the success is pinched on; a stable political environment in the United Kingdom, a fresh pool of design talents available to recruit from and favorable government policies regarding the domestic industries. However there are factors such as fierce competition from within the economy, government tax policies on retailers and loss of designer talents to other countries due to fiscal policies that threat to cripple the fashion industry. Additionally, despite the firm being among the trend setter in women’s wear, the women’s fashion industry is unpredictable and dynamic and consequently creating an uncertainty of the future regarding sales and market share. The firm has a focus-strategy approach to the industry; however few adjustments to this such as embracing cost leadership and vertical integration can be instrumental in improving performance for the Burberry Company.

Contents 1. Introduction 3 2.

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