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Burberry

Five Forces Analysis

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Burberry

  1. 1. BURBERRY Burberry Group plc. is a British luxury fashion house, distributing clothing, fashion accessories. Burberry is most famous for its trench coat, which was designed by founder Thomas Burberry.
  2. 2. BCG MATRIX Star Question mark Cash Cow Dog
  3. 3.  Stars:- “In March 2001, it announced that its sales had nearly doubled,to £425 milion,while profits had tripled to £69.5 milion.”  Cash Cows:- “  Question Marks:- “  Dogs:- “The 1990s began badly for a weary and outmoded Burberry. Its umbrellas & raincoats did well with Japanese businessmen who admired Brtish style, but elsewhere its trademark check was no longer considered a guarantee of quality.”
  4. 4. FIVE FORCES ANALYSIS This model identifies and analyzes 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths.
  5. 5. BARGAINING POWER OF SUPPLIERS(HIGH) • This is normally rated as high, because Burberry has few selected suppliers to deal with as they require higher quality exclusive products.
  6. 6. BARGAINING POWER OF BUYERS(MODERATE) • Due to relatively uniform product performance there is an inverse relationship between brand loyalty and buyer power.
  7. 7. THREATS OF SUBSTITUTES(MODERATE) • Burberry has a higer range of product catagury witch provide same satisfaction for each product.
  8. 8. THREATS OF NEW ENTRANCE(LOW) • Due to the Brand loyalty & High-end of product most new entrants will not be true competitors.
  9. 9. INTENSITY OF COMPETITIVE RIVALRY(MODERATE) • At Burberry everything begins and ends with great product, combining a focus on core categories with continuous inovation.

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