This report is a focused strategic analysis of Burberry and M & S and the UK industry as a whole. The report focused on the economic environment of the two companies as a result of the ongoing Brexit politics and how withdrawal of UK from the EU could affect fashion industry. Based on an article that appeared in Yahoo News (2019) where the editor highlighted the cloud of Brexit surrounding UK fashion industry. The author highlighted the economic uncertainty facing various UK fashion industry stakeholders as Brexit discussions continue. The author also expressed concerns that a no-deal Brexit could have adverse economic effects on the industry and could even lead the industry to shrink. The Yahoo News article was essential for this study as it did not only highlight the contributions of the fashion industry but also provided an important insight into the British fashion industry and how specific firms i.e. Burberry and M & S could be impacted by Brexit.
Table of Contents
- Executive Summary
- Introduction
- Analysis of Burberry and M&S's environment
- Analysis of the UK Fashion Industry
- Critical analysis of the economic environment of Burberry and M&S
- Conclusion
Objectives and Key Themes
This report aims to conduct a strategic analysis of Burberry and M&S within the context of the UK fashion industry, focusing on the economic impact of Brexit. The analysis examines the potential opportunities and threats arising from Brexit for these two companies and the industry as a whole.
- Impact of Brexit on the UK fashion industry
- Comparative analysis of Burberry and M&S's competitive strategies
- Assessment of the economic environment using Porter's Five Forces and PESTEL analysis
- Potential opportunities and threats for Burberry and M&S due to Brexit
- The competitiveness of the UK fashion industry in the face of Brexit
Chapter Summaries
Executive Summary: This report provides a strategic analysis of Burberry and Marks & Spencer (M&S) within the UK fashion industry, focusing on the economic implications of Brexit. It highlights the economic uncertainty facing the industry due to Brexit and explores how a no-deal Brexit could negatively impact these companies. The report analyzes Burberry and M&S's competitive strategies and assesses their potential vulnerabilities and opportunities in a post-Brexit environment. The analysis indicates that both companies operate in the high-end market segment but utilize different strategies, with Burberry focusing on innovation and M&S on diversification. Brexit presents challenges for both companies in terms of talent acquisition from the EU and accessing the EU market.
Introduction: This chapter sets the stage by introducing the significant uncertainty currently facing the British fashion industry due to Brexit. It introduces Burberry and M&S as two major players significantly impacted by this uncertainty. The chapter highlights the contrasting business models of the two companies: Burberry’s focus on luxury goods and M&S's more diversified approach. It also underscores the reliance of both companies on EU talent and market access, emphasizing the potential negative consequences of Brexit. The chapter previews the methodologies employed in the subsequent analysis, including Porter's Five Forces and PESTEL analysis, which will be used to assess the potential impact of Brexit. The chapter establishes the importance of Yahoo News' article on Brexit's effect on the UK fashion industry as a key source of information.
Analysis of Burberry and M&S's environment: This section delves into a two-pronged analysis of the economic environment of Burberry and M&S. Firstly, it uses Porter's Five Forces model to analyze the competitiveness of the UK fashion industry as a whole, identifying key forces influencing the industry's dynamics. Secondly, the chapter applies a PESTEL analysis framework to examine the specific opportunities and threats to Burberry and M&S in their economic environment, considering factors such as political, economic, social, technological, environmental, and legal aspects influencing their operations. The integration of these two analytical frameworks provides a comprehensive understanding of the external forces shaping the business landscape of these two companies.
Keywords
Brexit, UK fashion industry, Burberry, Marks & Spencer, Porter's Five Forces, PESTEL analysis, economic impact, competitive strategy, luxury fashion, diversification, EU market access, talent acquisition, economic uncertainty.
Frequently Asked Questions: Strategic Analysis of Burberry and M&S in the UK Fashion Industry Post-Brexit
What is the main focus of this report?
This report conducts a strategic analysis of Burberry and Marks & Spencer (M&S) within the UK fashion industry, concentrating on the economic effects of Brexit. It examines the opportunities and threats Brexit presents to these companies and the industry overall.
What key themes are explored in the report?
Key themes include the impact of Brexit on the UK fashion industry, a comparative analysis of Burberry and M&S's competitive strategies, assessment of their economic environment using Porter's Five Forces and PESTEL analysis, identification of potential opportunities and threats for both companies due to Brexit, and an evaluation of the UK fashion industry's competitiveness in a post-Brexit landscape.
What methodologies are used in the analysis?
The report employs Porter's Five Forces model to analyze the competitiveness of the UK fashion industry and a PESTEL analysis to examine the specific opportunities and threats facing Burberry and M&S. These frameworks provide a comprehensive understanding of the external forces influencing these companies.
How does the report summarize Burberry and M&S's business models?
The report contrasts Burberry's focus on luxury goods with M&S's more diversified approach. Both companies, however, rely significantly on EU talent and market access, making them vulnerable to the negative consequences of Brexit.
What are the key findings regarding Brexit's impact on Burberry and M&S?
Brexit presents challenges for both companies, particularly regarding talent acquisition from the EU and accessing the EU market. The report highlights the economic uncertainty facing the industry and explores how a no-deal Brexit could negatively affect both companies.
What are the main chapters covered in the report?
The report includes an Executive Summary, Introduction, Analysis of Burberry and M&S's environment (using Porter's Five Forces and PESTEL analysis), Analysis of the UK Fashion Industry, Critical analysis of the economic environment of Burberry and M&S, and a Conclusion.
What are some key takeaways from the chapter summaries?
The Executive Summary provides an overview of the strategic analysis and highlights the economic uncertainty and potential negative impacts of Brexit. The Introduction sets the context and introduces the methodologies. The analysis chapters delve into the competitive landscape and the specific challenges and opportunities presented by Brexit.
What are the key words associated with this report?
Keywords include Brexit, UK fashion industry, Burberry, Marks & Spencer, Porter's Five Forces, PESTEL analysis, economic impact, competitive strategy, luxury fashion, diversification, EU market access, talent acquisition, and economic uncertainty.
- Quote paper
- Difrine Madara (Author), 2019, Burberry PLC and UK's Fashion Industry. External Analysis, Munich, GRIN Verlag, https://www.grin.com/document/520215
