GBA 490 – 007
23 September 2015
Vera Bradley Case

Table of Contents
Page Numbers
Executive Summary……………………….…………………………………………….……………………………..3-6
Appendix A: Dominant Economic Characteristics…………………………………...…………………..6-7
Appendix B: PESTEL Analysis……………………………………………………………………….……..……….7-9
Appendix C: Five Forces Analysis……………………….…………………….………….……..…………….9-11
Appendix D: Industry Driving Forces………….………..………………..……………..……....………..11-12
Appendix E: Key Success Factors…..………………………………………………….………...............12-13
Appendix F: Financial Analysis..………………………………………….……..……..…….………………13-16
Appendix G: Resources and Capabilities Analysis (VRIN Test)…….…..…………….…………16-17
Appendix H: Weighted Competitive Strength Analysis…………………….……………………………17
Appendix I: Strategic Group Map…………….………………….……………………..………….……….18-19
Appendix J: Current Strategy…………………………………………………….………………………………….19
Appendix K: SWOT Analysis….…………………………………………………..………….………..….…...19-22

Executive Summary
The industry for luxury goods, including handbags and leather accessories, was an extremely competitive market. This industry included three subcategories: haute couture, traditional luxury, and accessible luxury. The entire industry was estimated to be worth about $96 billion dollars in 2013 with large continued growth expected (Appendix A). The accessible luxury segment of the market was growing at a particularly high rate, faster than the rest of the industry. Sociocultural factors, such as the growth in the number of middle-income consumers, greatly contributed to this rise of sales in the market of accessible luxury goods (Appendix B). This increase in middle-income discretionary spending and the growing globalization of the market were factors that drove the luxury goods industry (Appendix D). As a result of the extreme growth in this market segment, the rivalry between competitors was strong