Ralph Lauren Analysis

Ralph Lauren Analysis


Institution affiliation


           Ralph started with a tie in 1967 that was against the norm since it was wide contrary to the slim ones that were manufactured, the fabric used was of high quality, and the polo neckwear collection was launched. The company has come a long way since then with a focus on both luxury and middle-range products in four categories, fragrances, apparel, accessories, and home to become one of the biggest firms in the US Specialty Apparel Industry with a market share of 34.80% as of 2017. The company, which has its headquarters in New York, has also invested in the restaurant industry by establishing various outlets. RL is the symbol for the Ralph Lauren Corporation (“Our Company,” n.d.). The company’s success is accredited to internal and external factors, which will be the basis of the discussion on the strength, weaknesses, opportunities, and threats the company faces and how it has managed to change the negativity to its advantage.


           The company has retail over 325 factories and retail outlets, and the company also operate online stores and employs innovative marketing example, the 4D mapping that was used in Europe (Templeton, 2013). One of its brands, Polo Ralph Lauren, is among the leading players in the world on marketing, design, and distribution of lifestyle products, and all the retail store’s emphasis on showcasing the “World of Ralph Lauren,” which has an extensive luxury products selections. Most of the company’s success has also been attributed to the operations management, company structure, and the advertisement department efficiency. In the UK, the company’s margins in its sales have been attributed to the attractive display and product customizations that offer high-quality products while remaining competitive.


           The company products have some replica and fake imitations, which affect the sales that eventually affect the profit margins of the company. The company also sells globally; hence the different exchange rates result in the company’s cost margins being unstable, and the company’s product prices have limited flexibility; this does not attract consumers. The brand image of the company was also affected by the Levis lawsuit. Additionally, the company wholesale 36% revenue comes from two wholesale customers; this is bound to be affected if one customer was to terminate the business (“Ralph Lauren Corporation SWOT & PESTLE Analysis | SWOT & PESTLE,” 2017).

           There are various ways that the company can change the weaknesses to strength; by providing incentives to encourage its recognition and new wholesale buyers. Also, to counter the difference in exchange rates, the advertisement can be increased; this can increase its market base to counter the margins from the fluctuations. Fake imitation is a problem that affects most brands; hence, the company can incorporate the symbol with distinguishable features to help the consumers distinguish the real from counterfeit products.


           According to “Ralph Lauren Corporation SWOT & PESTLE Analysis | SWOT & PESTLE,” 2017, they are also various opportunities that are opening up for the company; recently, they are emerging markets where the consumers can be able to afford the products. Through the e-tailing, which is garnering recognition, the company can use the platform to increase sales, which will undoubtedly lead to its growth. With the advancement in technology, most people can be able to purchase goods from their laptops and phones, through the e-commerce, the retail store’s space for the companies will be freed up which can improve brand recognition especially in developing countries (Vanderbilt & Yunes, 2012). In addition, the company can engage in partnerships with the private label; this will ensure it gets significant tie-ups to necessitate its growth.


           However, they are threats that pose a challenge to the company; they include the exchange rate changes that occur across different states affect the prices and can result in the company making losses and its profits. Also, because of the high fashion industry fragmentation, this gives the consumers a high bargaining power. Also, the suppliers have considerable bargaining power since most of the company’s revenue comes from strategic revenues, which it has no control over. According to Vanderbilt & Yunes, 2012, the company has been facing competition from other brands all over the globe; for example, Burberry this have reduced the exclusivity of luxury brands. The company has also established retail stores in other countries where the labor conditions of those countries can affect the margins of the company; for example, the $15 minimum wage in China.

           Also, the threats of the company can be turned to opportunities by the company considering the competition as an arena and producing high products at an affordable price while providing incentives to the customers. The company should use the online platforms to garner a higher reputation globally; the sales margins from the recognition can account for the exchange rate issues. Lastly, it should ensure it complies with the labor standards in countries it has set shop to ensure there are no barriers to its operations.

           Ralph Lauren started as a small shop hit it has grown and become a recognized brand, this success can be attributed to the company’s evaluation of both the external and internal factors enduring that while it exploits all available opportunities the threats to its success are also countered. The clothing industry is garnering a lot of popularity hence attracting many brands. Still, the only way they are bound to succeed is to ensure that while only producing quality products, they are affordable to all.


Our Company. Corporate.ralphlauren.com. Retrieved 3 April 2020, from https://corporate.ralphlauren.com/our-company.

Ralph Lauren Corporation SWOT & PESTLE Analysis | SWOT & PESTLE. SWOT & PESTLE.com. (2017). Retrieved 3 April 2020, from https://www.swotandpestle.com/ralph-lauren-corp/.

Templeton, S. (2013). It’s Not About the Clothes: Branding Strategies of American Heritage Brands Brooks Brothers and Ralph Laure [Ebook]. Retrieved 3 April 2020, from https://digitalcommons.uri.edu/cgi/viewcontent.cgi?article=1000&=&context=tmd_major_papers&=&seiredir=1&referer=https%253A%252F%252Fscholar.google.com%252Fscholar%253Fhl%253DVanderbilt, M., & Yunes, D. (2012). e-Commerce Fulfillment Strategy for Luxury Brands in South Korea [Ebook]. Retrieved 3 April 2020, from https://dspace.mit.edu/bitstream/handle/1721.1/77475/827226328-MIT.pdf?sequence=2.