Burberry's Potential for Business in Russia
TABLE OF CONTENTS
CONTENT PAG.
1. INTRODUCTION 3
2. SWOT ANALYSIS 4-6
2a. STRENGTHS 4
2b. WEAKNESSES 4
2c. OPPORTUNITIES 5
2d. THREATS 6
3. CONCLUSION 7
4. REFERENCE 8-9
* 1. INTRODUCTION
Burberry has had amazing growth in the luxury sector with increases in revenues of more than 17% in the first six months to September 2010 (Burberry Group PLC, 2010). These results were the consequence of pointing their efforts and energy in the right direction, with strategies such as “leveraging the Franchise”. As part of this strategy and to optimize their presence in the Asian Markets, Burberry has decided to enter into China as an emerging market. However, this SWOT Analysis investigates the panaroma of potential business in Russia, questioning:
‘If Burberry has gone in to China, might they be overlooking Russia as a potenital revenue market?’
Obviously there are pros and cons to establishing a business in a new international frontier which will be illustrated throughout this analysis, and ultimately concluding the realistic potential for Burberry to do business in Russia. The comparison between Russia and China is justified through the common global view that Russia, China, Brazil and India are all part of the BRIC member states.
2. SWOT ANALYSIS
2a. STRENGTHS: * Burberry operates in the global luxury sector which, for Burberry's relevant categories, is estimated to be an approximately €150bn global market. (Burberry Group PLC, 2010). * Burberry has globally positioned the trench coat, trademark check and Prorsum horse logo tradition (Burberry Group PLC, 2010), and in the Russian Market there’s a really strong “show off culture” According to Igor Chapurin Russian Fashion Designer (cited by Financial Times, 2010) ‘… in Russia, there’s still a cult of visuality. It’s just starting to develop and I don’t think it will abruptly stop.’ * They have a wide range of product
CONTENT PAG.
1. INTRODUCTION 3
2. SWOT ANALYSIS 4-6
2a. STRENGTHS 4
2b. WEAKNESSES 4
2c. OPPORTUNITIES 5
2d. THREATS 6
3. CONCLUSION 7
4. REFERENCE 8-9
* 1. INTRODUCTION
Burberry has had amazing growth in the luxury sector with increases in revenues of more than 17% in the first six months to September 2010 (Burberry Group PLC, 2010). These results were the consequence of pointing their efforts and energy in the right direction, with strategies such as “leveraging the Franchise”. As part of this strategy and to optimize their presence in the Asian Markets, Burberry has decided to enter into China as an emerging market. However, this SWOT Analysis investigates the panaroma of potential business in Russia, questioning:
‘If Burberry has gone in to China, might they be overlooking Russia as a potenital revenue market?’
Obviously there are pros and cons to establishing a business in a new international frontier which will be illustrated throughout this analysis, and ultimately concluding the realistic potential for Burberry to do business in Russia. The comparison between Russia and China is justified through the common global view that Russia, China, Brazil and India are all part of the BRIC member states.
2. SWOT ANALYSIS
2a. STRENGTHS: * Burberry operates in the global luxury sector which, for Burberry's relevant categories, is estimated to be an approximately €150bn global market. (Burberry Group PLC, 2010). * Burberry has globally positioned the trench coat, trademark check and Prorsum horse logo tradition (Burberry Group PLC, 2010), and in the Russian Market there’s a really strong “show off culture” According to Igor Chapurin Russian Fashion Designer (cited by Financial Times, 2010) ‘… in Russia, there’s still a cult of visuality. It’s just starting to develop and I don’t think it will abruptly stop.’ * They have a wide range of product
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