Ralph Lauren - Polo - Strategy Case

Internal and External Environment.

issues specific to company and industry

major internal issues that are impacting the company – maintaining a distinctive brand image is proving difficult with market saturation

For more than 45 years, Ralph Lauren's reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. The Company's many different brand names constitute one of the world's most widely recognized families of consumer brands.

In recent years Ralph Lauren has expanded its business through acquisitions, extended the reach of its retail operations, and experienced organic growth. Between 2008 and 2012, sales have grown by more than 40%. Its accessories business rivals European competitors as a luxury brand, thanks to strategic partnerships with licensees including Richemont SA (to form Ralph Lauren Watch and Jewelry Co.) and the Italian eyewear giant Luxottica Group, which designs, manufactures, and distributes Ralph Lauren-branded prescription frames and sunglasses. Luxottica's US arm also makes Club Monaco-branded prescription frames and sunglasses sold in the US and Canada. 

Other major licensing partners include Hanes (under garments and sleepwear), L'Oréal (fragrance), and Warnaco (Chaps sportswear). With its products available in every section of a department store -- there's even Ralph Lauren paint at Home Depot -- the company remains profitable as a leader in the fashion and retail industry. By mutual agreement, Ralph Lauren and JC Penney, which markets mid-priced American Living-branded clothes and housewares through a partnership with the upscale brand, ended their relationship effective in Q4 fiscal 2012.

To give the apparel maker more control of its operations in Asia, which represents 14% of sales, Ralph Lauren has been buying out its licensees. In 2011 the company acquired its South Korean wholesale and retail distribution operation from licensee Doosan Corp. for...