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.


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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