Burberry's Technological Strategies and Trade-offs

What is one advantage Burberry has in the Chinese market due to its technological innovations?

How could Burberry's decision not to destroy excess stock impact its brand?

What economic factor could negatively affect Burberry's success in China?

Which of the following is a potential benefit of Burberry adopting sustainable practices?

What political influence could potentially harm Burberry's operations in China?

What percentage of customers are willing to pay more for sustainable goods, according to Extract E?

What was the initial effect of Gobbetti's appointment on Burberry's share price?

What factor is mentioned as NOT being a reason for fluctuations in Burberry's share price?

After whose departure did Burberry's performance begin to improve, according to the content?

What is NOT a factor mentioned that affects share price fluctuations?

Burberry and the External Technological Environment

Burberry utilizes digital technology, with a global presence across 13 platforms and 11 languages, including a mobile app available in 33 countries.
This broad reach potentially increases market share.
In China, WeChat usage for appointments and 80% smartphone-based online purchases provide a potential sales advantage.
Economic factors (e.g., falling consumer incomes) and political influences (e.g., government restrictions) could negatively impact Burberry's Chinese market performance.
Technology can potentially provide a competitive advantage for Burberry in China.

Trade-offs for Burberry

Maintaining brand exclusivity (e.g., not destroying excess stock) might result in lower profits if products are sold at below market value.
Customer preferences (e.g., preference for real fur in clothing) might lead to a shift in customer loyalty toward competing luxury brands.
Sourcing sustainable materials and ethical production can increase costs, potentially affecting profit margins.

Change in Senior Leadership at Burberry

Burberry's share price fluctuated between 2017 and 2018, having a radical change due to leadership changes.
Gobbetti's appointment initially had a positive impact on the share price but declined later until Christopher Bailey's departure.
The change in leadership, while a possible factor, is not the only reason behind the fluctuating share price. Other factors such as demand and supply and economic conditions are also factors influencing this.

Explore how Burberry leverages digital technology to enhance its global presence and market share. Learn about the trade-offs it faces in maintaining brand exclusivity and adapting to customer preferences in a competitive luxury market.