The founder further expanded the business by engaging in sales of women and men’s suits. The Polo emblem was acquired as the company’s trademark and has since made success in the world’s clothing industry. The company also embraces the Polo sport line which was embraced in 1993 and in 1997 the company was listed in the New York Stock Exchange.
Despite enjoying enormous success in the clothing industry in the world the company faced major challenges. The company’s faced huge losses in 2005 in its fourth quarter despite having higher revenues. The company’s failure is attributed to many reason like brand failure, high prices for their products, and the target market not being stable. Competition from other brands which targeted the same market also contributed to the company’s failure. Low economy was also a challenge to the company’s failure. The competitor’s like Jones New York, PVH, Perry Ellis and Liz Claireborne also contributed to the past failure of this company. Moreover, when Hilfiger was acquired by Philips Van Heusen to form PVH the competition increased and this also meant that Ralph Lauren Polo had to come up with new ideas and technologies in order to compete effectively into the market. Moreover, Rugby Ralph Lauren also faced direct competitions from Jones New York Company something that added failures to the already suffering Ralph Lauren Polo company. This is also the reason the brand Rugby was closed only 8 weeks after its introduction into the market even though the market target was the youth.
The marketing environment is constantly changing hence introduction of new product models is fundamental for maintenance of competitive advantage of the business (Ailawadi, 2008). To achieve this, Rugby has to introduce consumer hit constantly and one hit after the other. While marketing, it is important to consider levels of employment and income generations in the country’s economy and how these conditions can be able ...Show more