Ralph Lauren’s opportunities include “extending the brand and specialty retail”.
Polo Ralph Lauren is a globally well known brand known for its status and value. Retail stores are among one of the largest elements of extending the brand. Polo Ralph Lauren is continually debuting new products as well as new extensions of the brand. Polo Ralph Lauren also offers some elite products that are only distributed to stores in limited amounts keeping the demand high. They are not only opening over 50 stores in the United States, but they are expanding their global presence by opening over 20 new stores in Europe over the next five years.
Polo’s largest competitors are Tommy Hilfiger, Jones New York, Liz Claiborne, The Gap, Lacoste, and Express. “Jones New York filed a law suit against the company worth $550 million for a breach of a licensing agreement”.
Polo Ralph Lauren has been able to keep a competitive advantage by continually coming out with new fashions as well as new products such as home décor.
Ralph Lauren has many different suppliers of packaging and fabrics competing to provide their goods for the best price.
Ralph Lauren has many loyal customers and they are willing to pay a slightly higher price knowing they are getting the quality and affluence that the name Ralph Lauren emulates.
There is some threat of substitutes because competitors are making clothing which imitate Ralph Laurens designs as well as bringing out new fashions that Ralph Lauren must compete with.
There will always be new designers, but the threat of new entrants to the level that Ralph Lauren has sustained is low.
References:
Johnston, S., Watkins, T., Wright, C. Business valuation of Ralph Lauren Corporation. Retrieved from http://mmoore.ba.ttu.edu/ValuationReports/PoloRalphLauren.pdf
Ralphlauren.com
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