Executive Summary This report was commissioned to analyze and discuss t he application of the strategic management management process on Burberry the clothing manufacturing fashion organization of how they have done its strategic analysis, the way of them formulating strategy and implementation of strategy. Burberry's past and present pr esent business strategies are broken down to show how the company has reinvented and re-established itself as an international luxury brand after a serious drop in profits. Burberry has been an international brand since 1910, with distribution in the US, Asia, and mainland Europe, but by the end of 1998's financial year, the company had seen their annual profits drop from £62 million to £25 million. A reconstruction of the company's business model was desperately needed for the future. In 1997, the brand was available in 60 different London stores, but not stocked in the most prestigious retailers (i.e. Selfridges, Harrods, or Harvey Nichols). Burberry's IPO (initial public offering) prospectus sighted a heavy reliance upon small base core products; a company-owned company-owned retail network based within non-strategic locations; an inconsistent wholesale distribution strategy with Burberry products being sold in a wide-range of retail environments of varying quality; parallel trading of Burberry products by legitimate wholesale customers to other non-approved distributors and stock lists; a poorly controlled licensing strategy which resulted in inconsistencies in prices, design and quality control across markets; and under-investment in corporate infrastructures, specifically in relation to marketing, merchandising, product development development and other support functions as key strategic challenges that faced the company. As a first step, Burberry hired a new chief executive and began focusing on brand image management, management, product design and sourcing, and brand distribution. To align Burberry with other luxury lines they opened a flagship store on New Bond Street with more than 10,000 square feet of selling space, and upgraded the Burberry London brand to reflect the newly infused lifestyle-image li festyle-image Burberry currently represents. The new Burberry business model comprises four inter-r elated dimensions: products, manufacturing and sourcing, distribution channels, and marketing communications. The final changes were in place by 2000 and by 2003 the company had seen turnover increase by 263%, and profits increase by 630%. In order to create and generate a cohesive brand identity all Burberry marketing activiti es are managed from London, and their three core strands to the Burberry communications model is advertising, fashion shows, and and editorial placement. Burberry consequently consequently shows their Prorsum line twice a year in Milan, and the Burberry London line is shown at London Fashion Week each season in the London show rooms. The research draw attention to the fact that, in between 1997 to 2012, how Burberry develops from old fashion cottons turn into iconic luxury brand. Additional of how Burberry success and becomes one of the leading brand in fashion industry. Burberry started their business selling old fashion cottons. During the First World War, Burberry are making trench coat for the British army. Until today, Burberry’s trench coat had been a trademark for their organizations. All this success is due to careful analysis of strategy of how to prevent competitor over take them in market formulation of strategy before implement it t o confirm and avoid risk, and implementation of strategy perfectly to prevent from any risk.
