Porter's Five Forces of Burberry Assignment Example | Topics and Well Written Essays - 500 words

Porters Five Forces of Burberry - Assignment ExampleThe most vernacular barrier that whitethorn be faced by new entrants include cost of entering this pains is very high given the fact that there has been new technological advancement. Secondly, Burberry tends to have cost value and well established channels for distributing its products. The cost advantage whitethorn acts as a major intro barrier to the new firms. Further, Burberry has well differentiated products such as Trench coats that its competitors may non be able to emulate. However, fashion industry tends to be very dynamic. This means that entry barriers be low and therefore, Burberry should cogitation to increase internal and external strength to compete with new entrants more efficiently and effectively (Totallyan, 2011).Burberry corporation need to have numerous suppliers than it has currently. There is a need for the company to have numerous suppliers so that incase one supplier fail to deliver raw materials f or manufacturing fashion products another supplier may be contacted. This may help to reduce loses emanating from prompt delivery of raw materials. In addition, having numerous suppliers may ensure that there is seamless flow of products into the fashion market (Merrill, 2008).In this case buyers power is relatively high in the fashion industry under which Burberry is operating. This is because the numbers of large players are increasing making it possible for buyers to switch into brands produced by other companies. However, most of the new entrants do not have differentiated products as compared to Burberry Company. This provides Burberry a competitive advantage over its competitors because of customers brand loyalty. In addition, the buyers are well informed about the products produced by Burberry. This tends to influence their power. Moreover, economic forces such as inflation may affect buyers power whereby, during inflation buyers power tend to be low as they become more sens itive to higher price changes (Kotler, Keller, and Lu