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Internal and External Analysis of Burberry

Answer :

Introduction to Marketing

Marketing refers to communicating information of products and services to end users in order to create its unique identity in the marketplace. It enables corporation to create competitive edge in the marketplace and increase customer base. Present report is based on Burberry, the UK based organization which offers several products like outwear, fragrances and sunglasses as well as cosmetics. This corporation has several branches across world with 10851 employees. Furthermore, the net income earned by company in 2015 was £341.1. The report under investigation conducts  market analysis of corporation by using effective tools like PESTLE and SWOT. In addition to this concept of modern marketing has also been evaluated along with identification of challenges associated with the same.

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TASK 1

Market analysis of Burberry

The marketing analysis of corporation is very important which helps management to assess current information and accordingly bring modification in the marketing strategies. It consists of several tools like PESTLE, SWOT and Porter Five Force analysis. Here, for conducting analysis of Burberry, following tools have been applied-

PESTLE

The pestle analysis of organization has been done as follows-

Political -Political factors consists of many factors like tax policy, accounting standard and environmental law. Here, management of Burberry has to pay higher corporate tax that tends to reduce overall profitability (Cravens and Piercy, 2008). In addition to this, accounting standard of company also must be based on changing political parties so as to ensure ethical conduct of business. However, long term political stability support corporation in doing business effectively.

Economical-It consists of factors like inflation, global financial crisis and low unemployment (Decker, Wagner and Scholz, 2005). For example, inflation tends to reduce purchasing power of customers that affect overall profitability of corporation. On the other hand,  global financial crisis also create negative impact of Burberry as it face issue in raising its short or long term finance.

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Social-It is the most important aspect for organization that helps in understanding preferences and taste of buyers. For Burberry income inequality of customers is the major issue through which young generation has issue in accessing good quality of fashion products. However, growing and ageing population indicates growth and success of fashion company (Hughes, 2005).

Technological-Burberry is accessing updated technology at rapid speed. Owing to this, access to internet. Similarly, appropriate mode of communication are used so that buyers can be get important information related to products and services.

Legal-Legal framework imposed by government of UK must be considered by company. For example, Competition Act 1998 specified standard rules and regulation which are complied by Burberry (Phillips, Davies and Moutinho, 2011). In the same way employment Act and other related regulations are also taken into account. It leads to operate business in an effectual manner.

Environmental- The issue of CO2 emissions remain high for organization operating in UK. Owing to this, company need to take care of the same and CSR activities are performed so that general community get benefit from

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