Company is Burberry clothing group PLC Essay Example | Topics and Well Written Essays - 500 words

Company is Burberry clothing group PLC - Essay Example Part of its growth strategy is to license third parties or franchise other entities to manufacture and distribute it produces under the Burberry trademark though the majority of its operations are through the mainline stores and departmental stores across the globe. There were about 70 franchise stores, 227 concession stores, 215 mainline stores and 55 outlets as of 31 March 2014 (managementtoday.co.uk/go/burberry/) The company has employed an elaborate branding strategy, dividing its operations into three distinct brands. This helps to develop brand loyalty which in turn would increase the revenue volumes of repeat sales. The second expansion strategy that has been employed is the use of the franchise away from the traditional company operated mainline stores which increase the cost of doing business. Franchising has enabled the company to have a wider physical presence with less capital needs for expansion and growth into new markets. The company has also ventured into the eCommerce selling its products online to capture the growing trend in eCommerce and reach out to even more wider clientele not just the individuals who can access their physical stores. The company’s products are mainly continuity products that have relatively short life cycles and fashion products that respond to the prevailing trends. This consequently reflect that the company must ensure it position itself uniquely and also be able to target its more trendy conscious customers. The main competitors include Gucci, Polo, Coach and Armani which are top luxury fashion brands globally (wpp.com). To achieve a competitive advantage the Burberry Company has ensured that its expansion into new and emerging markets has been slow and steady as well as increasing its product range to include even logo less apparels. The company generated revenues of  £ 2,330 million, which resulted in a net profit of  £332.4