Strategy of Burberry

Into the course work 2 assignment, for the M002 Strategy course task is to continue to study Burberry, what is the analysis of organizational strategic direction and evaluation of key strategies. On this content, I read a number of articles which can help me find knowledge points on Burberry’s strategies.

The resource base view of strategy emphasizes upon a company’s internal capabilities in formulating strategies to achieve a sustainable competitive advantage in its market (Prahalad and Hamel, 1990). It also deals with the competitive environment faced by an organization, but from an inside-out approach which implies that the strategy’s starting point is the internal environment. On the other hand, the market-based view emphasizes upon strategy being based on the market positioning of a company (Rumelt, 1991). In order to sustain the company’s current success and maintain its competitive advantage, Burberry should focus on a resource based strategy. It implies that Burberry should continue its effort in maintaining its iconic luxury brand status and built upon its brand equity. The company has a history of more than 150 years of establishment, with having served the British soldiers in the World War I, and having received two Royal Warrants; all of which attach a strong sense of ‘Britishness’ with the brand. In addition to its brand equity, the company has a unique resource in terms of a specialized product line i.e. its iconic ‘trench coat’ with a unique complementary social media marketing communication platform. Additionally, the company has initiated a unique way of promoting its brand through fashion shows which serves not only as a marketing but a sales channel as well.  Burberry should keep up its efforts for continuous innovation and promotion for its product. Furthermore, the company has a signature check design that symbolizes Burberry’s status of a classic and luxurious brand. The company should hold on to its signature check design, and apply it to its new product lines.

References:

Prahalad, K., Hamel, G. (1990) ‘The Core Competence of Organization’. Journal of Harvard Business Review, 68(3), 79-91

Rumelt, R. P. (1991) ‘How much does industry matter?’. Journal of Strategic Management, 12(3), 167-185

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