• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Burberry sales up on Asia growth report

Extracts from this document...

Introduction

STRATEGIC MANAGEMENT TASK #3 BURBERRY CASE STUDY In 1956 Thomas Burberry started up his first Burberry outwears shop in Basingstoke, England and layed down the foundations of his future empire, and one of the most popular luxury brands in the world. Today, Burberry possesses a large and powerful international business that operates in the luxury sector, which is estimated to be an approximately �150 billion global market. It is currently one of the most renowned luxury brands throughout the globe. The Burberry brand can be distinguished by multi-category competency, as it offers womenswear, menswear, non-apparel, and childrenswear, and a great global reach across geographical regions. The massive global presence of the company on the market leads to great competitiveness on the global scale. Burberry competes with a huge variety of luxury goods companies. Some are large international conglomerates, owning many luxury brands; others are focused on a single brand locally; while others are small, more localized operations. Strategic thinking is essential in such a competitive environment, as the success of an organization depends on the correct choices and the correct choice itself is a combination of well-judged and self-test opportunities, knowledge and skills in using modern tools to develop strategic alternatives, and choosing, and implementing the most appropriate strategies, in order to achieve organizational goals. ...read more.

Middle

Investing in under-penetrated markets proved to be one the most successful elements in Burberry's strategy. By that time China and India were such markets, therefore all distribution channels in terms of retail, wholesale, and licensing where used, in order to optimize final outcomes. The results were incredible. Financial data indicated that since 2004, the global luxury goods market had grown by around 8% per annum prior to the economic downturn in late 2008. In 2009, it is estimated that the global luxury market declined by around 9%, as consumer confidence and spending fell. Burberry's wholesale business experienced a 28% drop in sales, which led to shutting down some units and restructuring the entire wholesale division. However, despite the economic slowdown, Burberry presented adequate financial results for 2008/2009. The firm stated that Europe and Asia both delivered double-digit percentage growth. At June 2009, the company possessed 18 retail stores, 253 concessions and 84 franchise outlets in over 25 countries. They agreed on expanding the number of franchised stores in Asia to 100. Specialists predicted recoveries in 2009/2010 and fortunately forecasts were correct. ...read more.

Conclusion

mainland stores were opened, including Burberry's first flagship store in Asia at Singapore's Ion Orchard. Additional locations in Paris and New York were added as well in attempts to strengthen the company's position. Twenty-eight (28) stores were renovated. The company achieved 60% growth in e-commerce and is planning to continue investing in the channel, as it has proved to be a valuable addition to the distribution process. Burberry has always been aiming at providing leading standards of customer service throughout its stores. The company's current strategies turned out to be successful in the highly unfavorable economic conditions it is operating in, therefore the Burberry Group are planning further to continue the search for under-penetrated markets and invest in them, and rely on heavy and aggressive marketing, in order to create strong brand awareness. The group now has 122 mainline stores, 255 concessions and 90 franchised stores across the world, is planning to increase retail selling space by 10 percent a year. The unexpected world economic crisis had a devastating effect on the business. It is times like those that require true strategic thinking. Burberry took the correct strategic choices and witnessed great financial results, while others were struggling to survive. It is extremely hard to predict the economic future. One thing is certain, Burberry continue to strive for excellence. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Project Management - planning an all inclusive carnival concert in the North Western end ...

    Live performers may not be available or within budget. The mitigating action for this risk we will hire as early as possible to avoid any extra charges for last minute booking. The entertainers may arrive late due to unforeseen circumstances.

  2. HMV Group plcs environmental and strategic position

    products faster it means it is almost the same as downloading it. Improving delivery system may come as a greater cost in the short term but improved delivery, means improved efficiency, which will reduce costs in the long term. Threats A threat that HMV Group may face for a while is as a result of the integration of Ottakar's.

  1. Advance Professional Development

    on your goals, it uncovers gaps in your skills and capabilities and opens up further development needs, it demonstrates your professional standing towards the achievements towards his career goals and objectives and helps you with your career development or a possible career change.

  2. Starbucks expansion into China

    Detail Analysis SWOT Analysis Strengths * The reputation of brand name and image Strong brand name and image of Starbucks allow brand recognition and consumer retention. Therefore, the expanding of stores to other countries is easier and proficient. * High revenues and profits The financial performance of company has positive aspects.

  1. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    Packaging The purpose of packaging is to protect the product and contain the product but it can also be used to give information and attract consumers. Brand name and logo The brand name and the logo are very important in packaging it has to be a catchy name.

  2. In this paper, we will study the case of Intel, a semiconductor chip maker, ...

    They believe in a portfolio approach to emission reduction and energy management. Through a wide variety of effort, they have built a strong sustainable approach to buying and using energy in an economical and environmentally conscious manner. o Reducing Greenhouse Gas Emissions: Intel has for many years reported its Scope

  1. Introduction to e-commerce. Benefits, risks and legislation.

    More sales, more profits, bigger budgets, etc. 5. Allows for Easier Delivery of Information: An Online store and Web brochure are great ways to deliver and display information about your company and the products you sell. Not only does it benefit your customers, but it's also usually easier for suppliers

  2. Ford Company Analysis - corporate structure and financial analysis

    The non-employee directors will meet for a period of time at each scheduled Board meeting without management present. A presiding director will preside at these meetings and also serve as the presiding director in performing such other functions as the Board may direct, including advising on committee selection and advising the Chairman on the agenda for Board meetings.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work