Long business experience- Burberry’s was incorporated in 1856 and had been in operation for more than one century before Bravo took over in 1997. This had given the company vast experience in the consumer market for apparels and luxuries. The company was more experienced in business compared to its competitors such as Gucci and Armani which were founded in 1921 and 1975 respectively.
Limited products- Burberry’s had very few products in the market. Its main products were umbrellas and outerwear. The company was left struggling to capture a significant market share while its competitors such Gucci and Polo dominated the market.
Low levels of innovation- Burberry’s had kept its traditional products for a very long time without getting new ideas to improvements and make them were relevant to the market. The firm lost its market share to competing businesses such as Gucci and Polo because it was unable to introduce new products and stay relevant in the market. On the other hand, Polo and Gucci became household names because of their ability to introduce new products that were relevant in the market.
Burberry’s position is sustainable because the company has vast business experience compared to its competitors. ...