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March 21, 2017
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XIAODAN WANG
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XIAODAN WANG
XIAODAN WANG
T
• Environmental Analysis
• Strategic Clock & Porters Generic strategies
• Porter’s Value Chain
• Stakeholder Mapping
• References
Environment Analysis—— PESTEL
olitical
conomic ocial echnological
income distribution, lifestyle,
consumerism and social mobility
comes
new discoveries/developments,
speed of technology transfer
nvironmental new discoveries/developments,
speed of technology transfer and
rates of obsolescence
egal competition law, product safety
Government stability, taxation
policy, foreign trade regulation
Source :International Monetary Fund, October 2014
Economy gross faster
CPI remain below target
Unemployment keep decline
2012 2013 2014 2015 2016
Real GDP
growth(%)
0.28 1.74 3.21 2.71 2.44
CPI
inflation(%)
2.82 2.56 1.63 1.80 2.00
Unemployme
nt (%)
7.95 7.60 6.35 5.78 5.47
Economic factors
Social factors
Europe become main inbound market
American visits up 4% .but slowed pace
for grow
June is the peak of tourism
Inbound visitor expenditure
increase.
Up 3.5% in 2014
SOURCE: International passenger
survey, ONS
SOURCE: ONS, Overseas Travel and Tourism; Great Britain
Tourism Survey October 2014, Great Britain Tourism
Survey 2013 (Domestic figures as per October 2014)
Environment Analysis —— SWOT
opportunity
• Expanding in new segments
• Upgrading product line
• Decrease current pricing
• Make fashion become
affordable
• Advertising the innovation
• make customers to get a
higher bargaining power
and switching costs
threat
• competitors in lifestyle
segment is Ralph Lauren
• in the same fashion target
segment like Gucci
• not enough store in small
city
Environment Analysis —— PORTERS FIVE FORCES
Rivalry
Threat Of
Substitute
(Weak)
Threat Of
New
Entrans
(Strong)
Bargaining
Power Of
Suppliers
(Low – > Moderate)
Bargaining
Power Of
Buyers
(Low ->
Moderate)
Key drivers affecting the chosen brand
• Burberry needs to be in tune with the
environment.
• Therefore, depending on the PESTEL and Porter’s
Five Forces, operation need Expanding in new
segments and Upgrading product line to facing
threat from lifestyle and fashion market
The SBU of Burberry
Burberry Prorsum
early brand, pattern of fashion, mordern style, £££££
Burberry London
early brand, tranditional pattern, formal style, ££££
Burberry Brit
short history,pattern of leisure, young style, £££
Strategy choice
•superior quarlity
•special design
•resist the margine
reduction
•maintain the high class
customer
•different segamentation
Focus
differentiation
The position in strategy clock
High
Low Price High
percived
product
/sevice
benefits
Burberry
Hybrid
strategies
Differentiation
strategies
Non-competitive
strategies
Low-price
strategies
Some competitors of Burberry
High
High medium
percived
product
/sevice
benefits
Price
Burberry
Gucci
Armani
Prada
POLO
Coach
Hemes
Inbound Logistics Operations Outbound Logistics Marketing and Sales Service
Firm’s Infrastructure
Procurement
Technological
Development
Human Resources
Management
Primary activities Support(Secondary activities)
· Get packaging
&configuration right
· Assembly: ItalyNorthern
EnglandItaly
·
· Plan to begin in Asia and
move west
· Skilled and diplomatic
staff in promoting
· Create videos to
demonstrate
craftsmanship
· Pricing: trench coat
$1000+
· Musician in marketing
· Track sales trends
globally(via SAP)
· Market out goods
to customers more
smartly and shortly
· Make actual
transportation more
efficient(via SAP)
159 years history,
215 stores, 55
outlets
Introduce SAP in wholesale and finance sys
Global workforce
10000+,adding
1000+ in the UK
Reputable fashion
world designer(e.g:
Christopher Bailey)
Redesign initiative in
wholesale, retail
&finance(Project Atlas)
· Warehouse in
northern England
· shorten deliver
distance(SAP)
Buttons supplier from
Italy, and Wool
supplier from Scotland
Supply chain will
be one of the
sectors
Clothes
manufacture in
Italy
Have flagships in
Rome & Milan
Revenue increase gradually
Set up strong
service
program
Strategic capabilities
VRIO
Value
chain
• unique design—–Burberry
check
• British label—–official
supplier to royal
• strong supports—–special
channel and technic
strategic
capabilities
Value reinforce heritage,
emphasizing and growing
core luxury products,
innovating and keeping as
the core
Focus on trench
coat, trench coat —the
best investment for
customer
Rarity Customers will be able to
personalize their own
fragrance bottles
Offer scarf customization
service
Inimitability 159 years history, its coats
were worn in the trenches
WWI by British soldiers
A part of British culture,
an official supplier to the
royal family
Organizational support Partner with DreamWorks
Animation’s new
visualisation platform
NOVA
Partner with Apple Music
section that launch a
channel on Apple Music
Work with Snapchat
Mapping stakeholders of Burberry
Burberry
Government:
tax, fur
policy Bank:
Exchange
rate
Suppliers:
cotton,
leather
Society:
Burberry
Foundation
Shareholders
Employees Customers
Owners
Managers
Competitors:
LVMH, Hugo
BOSS
Distribution
channels
Low High
Mendelow’s Matrix
Potential Customer
Minimal Effort
Minor shareholders
Competitors
Employees
Retailors, wholesales, licensing channels
Loyal customers
Society
Keep Informed
Government
Bank
Suppliers
Keep Satisfied
Owner
Manager
Primary shareholder
Burberry Impact Advisory Committee
(representatives from loyal customers)
Key Player
Burberry
Level of interest
Low
Price
High
(MarketLine,2015)
1. Ahrendts, A. (2013). Burberry’s CEO on Turning An Aging British Icon into a
Global Luxury Brand. Harvard Business Review, 91(1/2), 39-42v1.
2. Burberry Group plc. (2015). Burberry Group plc MarketLine Company Profile,
1-18
3. Conti, S. (2005). BURBERRY’S IT BOUNCE. WWD: Women’s Wear Daily, 190(8),
16-17.
4. Financial times (2004). Rose Marie Bravo Chief Executive, Burberry, [online].
Available at: http://www.ft.com/cms/s/0/831be07c-1348-11d9-b869-
00000e2511c8.html#axzz1c55heSJw (Accessed on 1/11/2011)
5. Friedman, V. (2011). Woman in the new: Angela Ahrendts, Financial Times,
[online]. Available at: http://cachef.ft.com/cms/s/0/e2f598ea-6d13-11e0-
83fe-00144feab49a.html#axzz1c9fL22j7 (Accessed on 1/11/2011)
6. MarketLine. (2015). Company profile Burberry Group plc. Retrieved from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=60ba0b76-cd9d-
4f99-afe9-115b994d99a0%40sessionmgr112&vid=4&hid=118
7. Millington, A. (2015). Burberry launches personalised digital campaign to
promote ‘scarf bar’. Marketing Week (Online Edition), 1.
8. NAUGHTON, J., & BORN, P. (2015). Burberry Bets On Romance. WWD:
Women’s Wear Daily, 210(25), 30-32
9. none(2015). Burberry annual review 2014-2015. Burberry Official Site.
Retrived from
http://www.burberryplc.com/investor_relations/annual_reports/annual_report
_2014-15?WT.ac=Annual+Reports
Reference list:
Reference list:
10. none(2015)compnany profile-Burberry Group.Burberry Group plc
SWOT Analysis. Retrived from
http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=1f67c1f5-
3616-464d-98fd-bcb845521bb2%40sessionmgr4002&vid=0&hid=4206
11. Roderick, L. (2015). Burberry in Snapchat first as it premieres new
fashion collection online. Marketing Week (Online Edition), 10.
12. STRUGATZ, R. (2015). Burberry Gets Apple Music Channel. WWD:
Women’s Wear Daily, 11.
13. Vizard, S. (2015). Burberry first brand to launch Apple Music channel.
Marketing Week (Online Edition), 1.
14. Vizard, S. (2015). Burberry lets passers-by take over Piccadilly Circus
screen to create personalised scarves. Marketing Week (Online Edition),
15. Wemby,A(2010).Crafting a Dual- Market Strategy-a case study of
Burberry.DIVA.Retrived from http://www.divaportal.org/smash/record.jsf?pid=diva2%3A331174&dswid=5761
16. Zekaria, S. (2010). “Burberry has Reasons to be Bullish”, The Wall
Street Journal,[online]. Available at:
http://blogs.wsj.com/source/2010/07/13/why-burberry-has-reasons-tobe-bullish/
(Accessed on 1/11/2011)
Q&A
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Get The Answer XIAODAN WANG
‘
‘
March 21, 2017
‘
<'">
0
XIAODAN WANG
XIAODAN WANG
T
• Environmental Analysis
• Strategic Clock & Porters Generic strategies
• Porter’s Value Chain
• Stakeholder Mapping
• References
Environment Analysis—— PESTEL
olitical
conomic ocial echnological
income distribution, lifestyle,
consumerism and social mobility
comes
new discoveries/developments,
speed of technology transfer
nvironmental new discoveries/developments,
speed of technology transfer and
rates of obsolescence
egal competition law, product safety
Government stability, taxation
policy, foreign trade regulation
Source :International Monetary Fund, October 2014
Economy gross faster
CPI remain below target
Unemployment keep decline
2012 2013 2014 2015 2016
Real GDP
growth(%)
0.28 1.74 3.21 2.71 2.44
CPI
inflation(%)
2.82 2.56 1.63 1.80 2.00
Unemployme
nt (%)
7.95 7.60 6.35 5.78 5.47
Economic factors
Social factors
Europe become main inbound market
American visits up 4% .but slowed pace
for grow
June is the peak of tourism
Inbound visitor expenditure
increase.
Up 3.5% in 2014
SOURCE: International passenger
survey, ONS
SOURCE: ONS, Overseas Travel and Tourism; Great Britain
Tourism Survey October 2014, Great Britain Tourism
Survey 2013 (Domestic figures as per October 2014)
Environment Analysis —— SWOT
opportunity
• Expanding in new segments
• Upgrading product line
• Decrease current pricing
• Make fashion become
affordable
• Advertising the innovation
• make customers to get a
higher bargaining power
and switching costs
threat
• competitors in lifestyle
segment is Ralph Lauren
• in the same fashion target
segment like Gucci
• not enough store in small
city
Environment Analysis —— PORTERS FIVE FORCES
Rivalry
Threat Of
Substitute
(Weak)
Threat Of
New
Entrans
(Strong)
Bargaining
Power Of
Suppliers
(Low – > Moderate)
Bargaining
Power Of
Buyers
(Low ->
Moderate)
Key drivers affecting the chosen brand
• Burberry needs to be in tune with the
environment.
• Therefore, depending on the PESTEL and Porter’s
Five Forces, operation need Expanding in new
segments and Upgrading product line to facing
threat from lifestyle and fashion market
The SBU of Burberry
Burberry Prorsum
early brand, pattern of fashion, mordern style, £££££
Burberry London
early brand, tranditional pattern, formal style, ££££
Burberry Brit
short history,pattern of leisure, young style, £££
Strategy choice
•superior quarlity
•special design
•resist the margine
reduction
•maintain the high class
customer
•different segamentation
Focus
differentiation
The position in strategy clock
High
Low Price High
percived
product
/sevice
benefits
Burberry
Hybrid
strategies
Differentiation
strategies
Non-competitive
strategies
Low-price
strategies
Some competitors of Burberry
High
High medium
percived
product
/sevice
benefits
Price
Burberry
Gucci
Armani
Prada
POLO
Coach
Hemes
Inbound Logistics Operations Outbound Logistics Marketing and Sales Service
Firm’s Infrastructure
Procurement
Technological
Development
Human Resources
Management
Primary activities Support(Secondary activities)
· Get packaging
&configuration right
· Assembly: ItalyNorthern
EnglandItaly
·
· Plan to begin in Asia and
move west
· Skilled and diplomatic
staff in promoting
· Create videos to
demonstrate
craftsmanship
· Pricing: trench coat
$1000+
· Musician in marketing
· Track sales trends
globally(via SAP)
· Market out goods
to customers more
smartly and shortly
· Make actual
transportation more
efficient(via SAP)
159 years history,
215 stores, 55
outlets
Introduce SAP in wholesale and finance sys
Global workforce
10000+,adding
1000+ in the UK
Reputable fashion
world designer(e.g:
Christopher Bailey)
Redesign initiative in
wholesale, retail
&finance(Project Atlas)
· Warehouse in
northern England
· shorten deliver
distance(SAP)
Buttons supplier from
Italy, and Wool
supplier from Scotland
Supply chain will
be one of the
sectors
Clothes
manufacture in
Italy
Have flagships in
Rome & Milan
Revenue increase gradually
Set up strong
service
program
Strategic capabilities
VRIO
Value
chain
• unique design—–Burberry
check
• British label—–official
supplier to royal
• strong supports—–special
channel and technic
strategic
capabilities
Value reinforce heritage,
emphasizing and growing
core luxury products,
innovating and keeping as
the core
Focus on trench
coat, trench coat —the
best investment for
customer
Rarity Customers will be able to
personalize their own
fragrance bottles
Offer scarf customization
service
Inimitability 159 years history, its coats
were worn in the trenches
WWI by British soldiers
A part of British culture,
an official supplier to the
royal family
Organizational support Partner with DreamWorks
Animation’s new
visualisation platform
NOVA
Partner with Apple Music
section that launch a
channel on Apple Music
Work with Snapchat
Mapping stakeholders of Burberry
Burberry
Government:
tax, fur
policy Bank:
Exchange
rate
Suppliers:
cotton,
leather
Society:
Burberry
Foundation
Shareholders
Employees Customers
Owners
Managers
Competitors:
LVMH, Hugo
BOSS
Distribution
channels
Low High
Mendelow’s Matrix
Potential Customer
Minimal Effort
Minor shareholders
Competitors
Employees
Retailors, wholesales, licensing channels
Loyal customers
Society
Keep Informed
Government
Bank
Suppliers
Keep Satisfied
Owner
Manager
Primary shareholder
Burberry Impact Advisory Committee
(representatives from loyal customers)
Key Player
Burberry
Level of interest
Low
Price
High
(MarketLine,2015)
1. Ahrendts, A. (2013). Burberry’s CEO on Turning An Aging British Icon into a
Global Luxury Brand. Harvard Business Review, 91(1/2), 39-42v1.
2. Burberry Group plc. (2015). Burberry Group plc MarketLine Company Profile,
1-18
3. Conti, S. (2005). BURBERRY’S IT BOUNCE. WWD: Women’s Wear Daily, 190(8),
16-17.
4. Financial times (2004). Rose Marie Bravo Chief Executive, Burberry, [online].
Available at: http://www.ft.com/cms/s/0/831be07c-1348-11d9-b869-
00000e2511c8.html#axzz1c55heSJw (Accessed on 1/11/2011)
5. Friedman, V. (2011). Woman in the new: Angela Ahrendts, Financial Times,
[online]. Available at: http://cachef.ft.com/cms/s/0/e2f598ea-6d13-11e0-
83fe-00144feab49a.html#axzz1c9fL22j7 (Accessed on 1/11/2011)
6. MarketLine. (2015). Company profile Burberry Group plc. Retrieved from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=60ba0b76-cd9d-
4f99-afe9-115b994d99a0%40sessionmgr112&vid=4&hid=118
7. Millington, A. (2015). Burberry launches personalised digital campaign to
promote ‘scarf bar’. Marketing Week (Online Edition), 1.
8. NAUGHTON, J., & BORN, P. (2015). Burberry Bets On Romance. WWD:
Women’s Wear Daily, 210(25), 30-32
9. none(2015). Burberry annual review 2014-2015. Burberry Official Site.
Retrived from
http://www.burberryplc.com/investor_relations/annual_reports/annual_report
_2014-15?WT.ac=Annual+Reports
Reference list:
Reference list:
10. none(2015)compnany profile-Burberry Group.Burberry Group plc
SWOT Analysis. Retrived from
http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=1f67c1f5-
3616-464d-98fd-bcb845521bb2%40sessionmgr4002&vid=0&hid=4206
11. Roderick, L. (2015). Burberry in Snapchat first as it premieres new
fashion collection online. Marketing Week (Online Edition), 10.
12. STRUGATZ, R. (2015). Burberry Gets Apple Music Channel. WWD:
Women’s Wear Daily, 11.
13. Vizard, S. (2015). Burberry first brand to launch Apple Music channel.
Marketing Week (Online Edition), 1.
14. Vizard, S. (2015). Burberry lets passers-by take over Piccadilly Circus
screen to create personalised scarves. Marketing Week (Online Edition),
15. Wemby,A(2010).Crafting a Dual- Market Strategy-a case study of
Burberry.DIVA.Retrived from http://www.divaportal.org/smash/record.jsf?pid=diva2%3A331174&dswid=5761
16. Zekaria, S. (2010). “Burberry has Reasons to be Bullish”, The Wall
Street Journal,[online]. Available at:
http://blogs.wsj.com/source/2010/07/13/why-burberry-has-reasons-tobe-bullish/
(Accessed on 1/11/2011)
Q&A