Burberry is a British luxury fashion house known for its trench coats. In the 1990s, Burberry struggled as its trademark plaid pattern was no longer seen as a sign of quality, but it rebounded in the early 2000s as sales nearly doubled and profits tripled. A five forces analysis shows Burberry faces high bargaining power from suppliers due to its selective sourcing, moderate bargaining power from buyers and threats of substitution due to its product range, low threats of new entry due to its brand loyalty and premium offerings, and moderate competitive rivalry as it focuses on innovation within core categories.

2. BURBERRY
Burberry Group plc. is a British luxury fashion
house, distributing clothing, fashion
accessories.
Burberry is most famous for its trench coat,
which was designed by founder Thomas
Burberry.

3. BCG MATRIX
Star Question mark
Cash Cow Dog

4.  Stars:-
“In March 2001, it announced that its sales had nearly doubled,to £425
milion,while profits had tripled to £69.5 milion.”
 Cash Cows:-
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 Question Marks:-
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 Dogs:-
“The 1990s began badly for a weary and outmoded Burberry. Its
umbrellas & raincoats did well with Japanese businessmen who admired
Brtish style, but elsewhere its trademark check was no longer considered a
guarantee of quality.”

5. FIVE FORCES ANALYSIS
This model identifies and
analyzes 5 competitive
forces that shape every
industry, and helps
determine an industry's
weaknesses and strengths.

6. BARGAINING POWER OF SUPPLIERS(HIGH)
• This is normally rated as high, because Burberry has few
selected suppliers to deal with as they require higher
quality exclusive products.

7. BARGAINING POWER OF BUYERS(MODERATE)
• Due to relatively uniform product performance there is
an inverse relationship between brand loyalty and
buyer power.

8. THREATS OF SUBSTITUTES(MODERATE)
• Burberry has a higer range of product catagury witch provide
same satisfaction for each product.

9. THREATS OF NEW ENTRANCE(LOW)
• Due to the Brand loyalty & High-end of product most new
entrants will not be true competitors.

10. INTENSITY OF COMPETITIVE RIVALRY(MODERATE)
• At Burberry everything begins and ends with great product,
combining a focus on core categories with continuous
inovation.