Threat of new entrants (Strong) • Burberry is a heritage brand with an ex factor of culture and history which makes it unique in the market and difficult for the new brands to catch up. However, there is a growing demand for affordable luxury brands especially in Asia’s market. (WGSN 2014) • Secondly, internet has created easy access for new businesses to develop and offer luxury product at lower price point with the same or similar quality. Threat of substitute products (weak) • As Burberry stands in Luxury market which has always had a demand and it is expected to continue the same, substitute products would not be considered as a big threat for the brand. However, the counterfeit products could be considered as threatening in terms of brand’s identity “The influx of fake designer goods is hurting brands both financially and in terms of reputation” (WGSN b. 2014)
APPENDIX 4 DIFFUSION OF INNOVATION According to Mr. Blackburn academic article which investigates on Millennials and new technologies, most of millennials are fast to adopt, but always rely on other people recommendations which makes them early adopters. “The motivation for the diffusion of such new products can come from the pursuit of social rewards for early adopter behavior. According to Fisher and Price’s (1992) “An investigation into the social context of early adoption behavior”, those in higher social positions seek out new products as a means of establishing and communicating social differentiation (p. 477). Their study on the visibility and influence of a superordinate group showed perceived visibility of consumption of a product and the group’s influence has a direct influence on consumers’ expectations of consumption and early adoption. Millennials thrive on individualism, even as part of an organization.” Blackburn, H, 2011
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