Opportunities for growth

The two major growth opportunities by keeping in mind the macro environment of

Burberry is discussed to assure that the company can definitely take advantage from

these opportunities. Both the opportunities can make contribution in the future growth of

the organization. The company can easily take advantage from these opportunities and

it can be helpful for the company to enhance its market image. The product quality sold

by Burberry has the capability to retain the market share captured by it. Those

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consumers who are buying the products at premium prices are only concerned about

the quality.

Change in lifestyle: The lifestyle of people is changing specially in developing

countries. The customers are getting attracted towards premium quality products

instead of cheap products (Abalkhail, 2019). The education level is continuously

increasing in the developing countries and it is changing the lifestyle of customers. In

the past, the customers are not much aware about the quality so they are preferring the

cheaper products in fashion and cosmetics both without knowing that the lower quality

cosmetic products affect their skin. But this thinking of customers is changing towards

fashionable clothes. The customers are becoming fashion oriented and creative and

they want to purchase premium products which are rich in quality and are of creative

styles. So, it can be an opportunity for the company to target the customers in

developing countries. This can be the best opportunity to take advantage from the

changing lifestyle of the customers.

Market expansion: Market expansion is a strategy under Ansoff's marketing theory

(Leavy, 2018). This marketing theory consist of four types of strategy i.e. product

development, market development, diversification and product penetration. These are

the four growth strategies under Ansoff's theory. Burberry can growth in the market by
using market expansion strategy and it can an opportunity for the company. Under

market expansion strategy, the company is required to start selling its existing products

in new markets. The company can enter Egypt, Turkey, Thailand, India and Mongolia as

these countries are developing countries and the competition is also less. So, the

customers are not having many choices. For example: In Indian market, the brands

which are selling luxury products are less as compared to the developed countries like

USA. The level of competition is crossing all limits in developed countries due to the

already existing demand in such countries (Jones, 2016). Burberry is already providing

premium products to its customers and the company is doing good in its existing

markets as it is serving all over the world. But the company should use the opportunity

of expanding into the markets where there is shortage of premium brands and the

competition is also less. This opportunity can provide dual benefit to the organization.

The first benefit is that the customers gets increased with expanding the market and the

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secondary benefit is that the competitive advantage can be easily achieved in the new

markets where the competition is less.