Burberry Group PLC denotes a luxury fashion company that has its headquarters in London. The company’s main fashion house centers on and deals with trench coats (for which it is prominent), convenient outerwear, fashion accouterments, sunglasses, cosmetics, and fragrances to mention but a few. This research paper focuses on the SWOT analysis of Burberry Group PLC with respect to its strengths, weaknesses, opportunities, and threats and concludes with recommendations for the company. SWOT analysis seeks to illustrate the position of Burberry Company clearly when judged against its competitors. In a larger sense, SWOT analysis will assist in the comprehension of the fashion market and the place of Burberry Company within it.
SWOT Analysis
Strengths
- Iconic fashion brand: Attributable to over 150 years of lengthy history, the products of Burberry Company have turned out to be synonymous with British trend. Over and above its wide range of products, the company has been known for offering first-class and long lasting outfits for its customers.
- International presence: Burberry has over five hundred stores in about fifty nations across the globe. The company sells to its clients in both wholesale and retail terms.
- Reinvention from just a manufacturer to lifestyle brand: The management of the company has come up with smart choices in improving its brand in addition to its expansion. In the course of the years, Burberry has grown into a prestigious brand, serving as a reputable icon of class and luxury (Straker and Wrigley 279).
- Reception of royal warrant: The Company has obtained a royal warrant two times; one time by Prince Charles and the other by Queen Elizabeth. This signifies that the company has been portrayed as a supplier of fashion to the royal family. These historic achievements have added immense value to the brand, and go a long way to attracting a high number of customers.
- Engagement with the society: The Company comprehends that interacting and engaging with people through social media platforms makes it appear relevant to the target audience and get in touch with a huge proportion of the international market that it would not have otherwise reached. The effectiveness of its social media marketing policy through Facebook, Twitter, YouTube, and other platforms is evident in the high number of followers and fans (more than 90 million).
Weaknesses
- Premium price range: Though the high price for the company’s products is indicative of quality and desirability, it has made it unaffordable to many customers.
- A limited line of products: The product line of the company contains beauty products, apparels, and accessories, and is also restricted to luxury and fashion (Straker and Wrigley 286). This locks out many customers interested in other products.
- Asian marketplaces: Burberry does not have significant operations in the large Asian market, and this leaves out a huge proportion of its would-be customers.
Opportunities
- Changing lifestyle: Attributable to the saturation of industrial economies, the varying tastes, preferences, and lifestyle of developing nations has led to a sudden demand for first-rate goods and services, which Burberry should exploit.
- Emerging markets: Venturing into new potential markets such as Turkey, Egypt, and Thailand will be the only means of succeeding in the future as there is already high competition being experienced in developed nations.
- Expansion of product line: Enlarging the company’s product line will unlock a new scope of opportunities while simultaneously making it differentiate itself from its rivals.
- Rising demand for premium products: The consideration of the Indian marketplace shows a growth rate of over 30% in the requirement of high-quality products. This marks a great opportunity that Burberry can tap and expand the market size of luxury products in developing economies (Straker and Wrigley 284).
Threats
- Competition from other fashion companies: Stiff competition from other players such as Prada, Louis Vuitto, Calvin Klein, and Gucci that have an international presence poses a great threat to the success of the company.
- Varying customer lifestyle: The constantly shifting lifestyle and fashion preference amid the consumers is a major threat to Burberry in its quest to satisfy its customers and thrive in the market (Straker and Wrigley 281).
- The danger of fake/imitation products: The premium products sold by Burberry face the threat of imitation which may influence their demand negatively with time. Illegal sale of such fake products posing to be from Burberry harms the company’s brand reputation and success.
Recommendations
To attract the youthful population who desire to lead their lifestyle but cannot afford high prices products, Burberry should introduce cheap and quality products that target the young customers who form a high proportion of the market. The company should broaden its line of operation by introducing other products such as home décor to maintain its relevance and attain competitive advantage in the market. It should intensify its operation in Asia, Turkey, Egypt, and Thailand as a considerable fraction of sales could be realized from Asian customers and consumers in developing economies. Moreover, since trademarks and intellectual property rights are essentially vital to Burberry’s success, reputation, and competitive advantage, anyone caught manufacturing fake products feigning its brand should be heavily fined and charged.
Work Cited
Straker, Karla, and Cara Wrigley. “Emotionally Engaging Customers in the Digital Age: The Case Study of “Burberry Love”.” Journal of Fashion Marketing and Management, vol. 20, no. 3, 2016, pp. 276-299.