Economic Analysis of Burberry
1.0 Introduction
There are tools and techniques that can help owners and managers make decisions. However these decisions are based on purely estimations where the costs and profits will come to a breakeven point. The common breakeven analysis is Cost-Volume-Profit Analysis.
This analysis shows that how the cost and profit changes when the volume change. It analyses the effects on profits of changes in variable costs, fixed costs, selling prices, volume, and the products sold. However, there was a downside for this analysis which it only focuses on the breakeven point.
In this paper, I mainly analyses Burberry’s performance and describing some of the companies’ background. Besides that, I also did some research on the structure and the competitiveness of the luxury fashion industry.
Burberry had built their position in the market since 1856. Burberry Group is a British luxury fashion house, manufacturing clothing and fashion accessories. Its distinctive tartan pattern has become one of its most widely copied trademarks. The company has branded stores and franchises around the world, and also sells through concessions in third-party stores. It runs a catalogue business and has a fragrance line.
2.0 Burberry Background
The Burberry brand was well-known for the authentic British heritage, unique democratic positioning within the luxury arena. They are the largest retailer in United Kingdom. Their founding principles are quality, function and modern classic style. The trench coat, trademark check and Prosum horse logo are their globally recognized icon portfolio. By year 2000, Burberry operated 58 company-owned stores.
2.1 History
154 years ago, a 21 years old draper’s apprentice, Thomas Burberry, opened a small outfitter’s shop in Basingstoke Hampshire, England. By year 1870, Burberry focused on the quality and innovation in fabric and outwear design which expanded the shop into an ‘emporium’. Ten years after that, they invented Gabardine. Gabardine is a
There are tools and techniques that can help owners and managers make decisions. However these decisions are based on purely estimations where the costs and profits will come to a breakeven point. The common breakeven analysis is Cost-Volume-Profit Analysis.
This analysis shows that how the cost and profit changes when the volume change. It analyses the effects on profits of changes in variable costs, fixed costs, selling prices, volume, and the products sold. However, there was a downside for this analysis which it only focuses on the breakeven point.
In this paper, I mainly analyses Burberry’s performance and describing some of the companies’ background. Besides that, I also did some research on the structure and the competitiveness of the luxury fashion industry.
Burberry had built their position in the market since 1856. Burberry Group is a British luxury fashion house, manufacturing clothing and fashion accessories. Its distinctive tartan pattern has become one of its most widely copied trademarks. The company has branded stores and franchises around the world, and also sells through concessions in third-party stores. It runs a catalogue business and has a fragrance line.
2.0 Burberry Background
The Burberry brand was well-known for the authentic British heritage, unique democratic positioning within the luxury arena. They are the largest retailer in United Kingdom. Their founding principles are quality, function and modern classic style. The trench coat, trademark check and Prosum horse logo are their globally recognized icon portfolio. By year 2000, Burberry operated 58 company-owned stores.
2.1 History
154 years ago, a 21 years old draper’s apprentice, Thomas Burberry, opened a small outfitter’s shop in Basingstoke Hampshire, England. By year 1870, Burberry focused on the quality and innovation in fabric and outwear design which expanded the shop into an ‘emporium’. Ten years after that, they invented Gabardine. Gabardine is a
References: Sloman, J. 2006, Economics, 6th edn, Pearson Education Limited, England. Welch, P.J & Welch G.F., 2010, Economics Theory & Practice, 9th edn, John Wiley & Sons, Inc, United States of America.