Burberry Swot

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Strengths

Burberry is uniquely positioned as a classic British apparel brand with high global brand awareness to capture the globalization of consumer demand. Its distinctive luxury brand with international recognition and broad appeal. The company’s outlook for the accessible luxury goods industry remains positive from both a geographic and product point of view. Burberry had become positively hip and popular among a younger demographic. It has a unique history and positioning as the authentic British lifestyle brand and highly successful merchandising and marketing strategy across both appeal and accessories. In 2000 Burberry’s total sales were 225.7 million and by 2003 sales had went up to 593.6 million.

Weaknesses
When Burberry brand became licensed across a range of categories, the price,design,and quality of products were not being looked at anymore. In Asia, wholesalers sold the products to unauthorized distributors, who then sold the products at prices, channels, and locations without respect to the brand image and because of that Burberry started to lose its important image.

Opportunities
There was a niche for Burberry between labels, for example, Polo Ralph Lauren and Giorgio Armani in apparel, and between Coach and Gucci in accessories. Burberry now has three primary collections: womenswear, menswear, and accessories. Womenswear line focused on the autumn/winter season and over the years expanded to spring/summer seasons as well.

Threats
In 2001 LVMH was 14.1% in sales and Burberry was 5.2% in sales. Sesonality and weather was a risk because of its exposure to the outerwear market, although this is a reducing proportion of sales. There were different types of outfits for each session. Also, counterfeiting and overexposure of the brand had issues in the past with imitation products and over-distribution of the brand leading to brand dilution, although it seems to have put those behind it.
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