Ralph lauren swot analysis 2017

EXECUTIVE SUMMARY

Write last. One page that recaps the company, the gaps, problem, solutions and implementation. No figures, not necessary to cite. Insert page break after text.

Part 1—Company Discussion

Introduction

Ralph Lauren is an American, publicly traded holding company was founded in 1967 by the American fashion designer Ralph Lauren. Ralph Lauren now days produce products in for main categories: clothing, fragrances, home and accessories. “Its product portfolio includes t-shirts and sweat shirts, casual shirts, sweaters, shorts and swimwear, underwear and loungewear, blazers and vests, skirts, sleepwear and robes. In addition to this, it also offers hats, scarves and gloves, bags and leather goods, belts and braces, socks, ties and pocket squares, sunglasses, cuff links, jewelry, diaper bags, blankets and swaddles, stuffed animals and plush toys” )Business Insights Global 2017) Ralph Lauren presents its products under a number of brands around the world such as Polo Ralph Lauren, Lauren Ralph Lauren, Ralph Lauren Children’s wear, Denim & Supply Ralph, Double RL, Lauren, Club Monaco, Chaps, and Ralph Lauren Collection.)Business Insights Global)

Ralph Lauren currently has around 23,300 employees around the world. (Business Insights Global) The company serves its customers through retail stores and online retail stores. Ralph Lauren own and operates 7,294 wholesale stores and a total of 16,970 shop-within-shops. (Business Insights Global) All the stores are widely distributed across the globe in 68 nations from 6 continents. (Business Insights Global)

Mission

“What began 40 years ago with a collection of ties has grown into an entire world, redefining American style. Ralph Lauren has always stood for providing quality products, creating worlds and inviting people to take part in our dream. We were the innovators of lifestyle advertisements that tell a story and the first to create stores that encourage customers to participate in that lifestyle” (wearpoloralphlauren.weebly.com)

Everything that Ralph Lauren accomplished in 41 years we can summarize it in one short sentence “Redefining American Style” Ralph Lauren was always the leader in its field through many intelligent ways such as lifestyle advertisements and encouraging their customers to participate in that life style.

Vision

“Ralph Lauren (RL) is a leader in the design, marketing and distribution of premium lifestyle products. They have a vast array of products, but the top 4 are apparel, home, accessories and fragrances. Polo's products are premier and luxury notorious for their quality. According to Forbes.com, Polo ranks 1st in household and personal products” (wearpoloralphlauren.weebly.com) The company’s vision is to remain the leader in its field. Ralph Lauren doesn’t focuses on one particular product, in fact it has a lot of products from different categories but they always ensure high quality output.

Values

The company has sets of values and guidelines that they follow during their work and operations. For example when it comes for employment the company will not give attention to your religion, color, race, gender, sex or your marital status. Any form of discrimination is unacceptable in Ralph Lauren. The company Also refuses to use child labor as a kind of appreciation of children rights around the world. (www.ralphlauren.com)

Current Business Strategy

There are several strategies that Ralph Lauren follow in business. For example one of the ways to increase desirability and relevance is to refocus and evolve the product, marketing, and shopping experience. Another way to strengthen the brand and drive high quality growth is developing a disciplined multi-channel distribution and expansion strategy. (10K)

Stakeholders

Stakeholder Stake

1- Government Taxes

2- Community Health, Jobs

3- Environment Health, Safety

4- Customers Products

5- Employees Jobs, Security

Pair with similar stakes: The community and Employees have similar stakes because the employees are part of the community.

Pair with opposing stakes: Government and taxes are opposing stakes because for example when the government imposes taxes it affects the customer whether in a direct or indirect way.

Financial Overview

Regarding the company’s revenue, there was a decrease from 7629m to 7405m between the years 2015 and 2016 which equal 2.82%. (Business Insights Global) Also between the years 2016 and 2017 there was a big decrease from 7405 to 6652.8 which equal10.16%. (Business Insights Global) When it comes to gross profit there was decrease from 4378m in 2015 to 4187m in 2016 which equal 4.36% And another big decrease between the years 2016 and 2017 from 4187m to 3651.1 m. (Business Insights Global)

Financial History

Ralph Lauren’s stock performance wasn’t stable over the last 3 years. In Dec, 28, 2015 the stock market closed at 111.4800 with volume of 2.06m. In Dec, 27, 2016 the stock market closed at 90.3200 with volume of 3.59m. Also in Dec, 26, 2017 the stock market closed at 103.0 with volume of 3.04m. (www. finance.yahoo.com)

Debt

Regarding the debt ratio, Ralph Lauren’s total debt has decreased between the years 2016 and 2017. In 2016 the total debt was 713.1 m and it became 588.2 in 2017. that means that 17.5% of the total debt was paid in one year.

Patents

There are no Patents applicable for RL Corporation.

Legal issues

It does not apply

SWOT

Strengths

Multiple Channels Selling

Merchandise sale through the various outlets raises the direct to consumer business of the company. The brand awareness, traffic, and sales of the store are increased with the assistance of the varied retail and marketing networks. Ralph Lauren sales its products over a combination of both the online stores and the normal retail stores. The company operated a total of 13,337 stores by April 2017 while still maintaining its main showrooms in New York. (Business Insights Global) The Other local showrooms are located in Paris, Milan, London, Madrid, Munich, Panama and Stockholm. The products of Ralph Lauren are also merchandized through several E-commerce portals that include www.RalphLauren.com and www.ClubMonaco.com. The company also has European sites which offer several products to its European market. These sites include www.RalphLauren.de, www.RalphLauren.co.uk, www.RalphLauren.de, and www.RalphLauren.fr. The company’s Asian sites in South Korea are www.RalphLauren.co.jp in Japan, www.RalphLauren.asia and www.RalphLauren.co.kr. (Business Insights Global)

Strength - Wide Geographic Presence

An extensive geographical presence assists Ralph Lauren to provide its products to a diverse customer base and hence make higher revenues. The geographical base aids the organization to alleviate several financial and economical risks related to dependence on a specific region or country. The worldwide presence of the company supports building the brand image and maintaining a healthy market position of the company. The wide geographic presence is as a result of the company owning and operating various shops in North America, Asia, and Europe. In North America, Ralph Lauren runs a total of 7,294 wholesale stores, 16,970 shop-within-shops, 170 factory stores, 46 Ralph Lauren stores, and 74 Club Monaco stores. (Business Insights Global) In addition to this, the company in Europe operates 5,690 wholesale stores, 21 Ralph Lauren stores, 61 factory stores, and 31 concession-based shop-within-shops. (Business Insights Global) The company also operates 187 wholesale stores, 42 Ralph Lauren stores, 47 factory stores and 586 concession-based shop-within-shops in Asia. (Business Insights Global) North America accounted for 57% of the total revenue followed by Europe with 23.3% while Asia accounted for 13.3% of the total revenue and 6.5% of the income was from other non-reportable segments in the 2017 financial year. (Business Insights Global) There are also 12 distribution facilities situated in Canada, United States, Japan, Europe, South Korea, China, Latin America and Southeast Asia which are owned by the company. (Business Insights Global 2017)

Weaknesses

Weakness - Declining Revenue

There was a decline in the growth of revenue during the year review of 2017 by the company. Ralph Lauren conveyed revenues of US$6,652.8 million in FY2017 in comparison to US$7,405 million in FY2016, representing a decrease of 10.2%.(Business Insights Global) The decline was due to the poor performance from its Europe, Asia, North America, and Other non-reportable segments. The overall sales of its North American region decreased by 15.5% in FY2017 compared to FY2016. (Business Insights Global) Additionally, the business's Europe, Asia, and other non-reportable segments also experienced a decline in sales growth of 9.6%, 5.4%, and 1.2% respectively during the review period. (Business Insights Global) The reduction was as a result of lower sales in North America wholesale business and the effects of the unfavorable foreign currency. (Business Insights Global 2017)

Weakness - Inventory Turnover Ratio

During the year review, Ralph Lauren reported a weak inventory turnover ratio. This is due to the corporation experiencing high inventory carrying costs which in turn impacts the operational performance of the company. Ralph Laure had a turnover ratio of 3.8 which was lower than that of its main competitors American Eagle and Gap that had a turnover ratio of 6.3 and 5.4 respectively. (Business Insights Global) In the FY2017. The lower turnover ratio is an indication of the longer period that it takes the company to clear its catalog. Therefore, Ralph and Lauren take 96 days to clear its inventory while American Eagle takes only 57 days and Gap takes 68 days. (Business Insights Global)

Opportunities

Opportunity - Increase in Consumer Spending in the US

An increase in consumer spending in the United States can benefit Ralph Lauren since it offers a diverse product portfolio that has a wide-reaching luxury in the United States. An increase in sales volume is expected due to increased consumer spending since the company is focused on the retail industry. Increasing personal income, personal consumption expenditure and disposable personal income are indicators of improved consumer spending which increases the purchase of the company's products and also its performance. In May 2017, the personal income increased by 0.4%, disposable personal income increased by 0.4% and the personal consumption expenditure increased by 0.2 % according to a report by BEA. (Business Insights Global)

Opportunity - Expanding Retail Market in the US

The company is a leading retailer in the US as it operates 7,294 wholesale shops, 46 Ralph Lauren stores and 170 factory stores in North America and Canada. (Business Insights Global) Therefore, the US retail market has the positive chance to provide growth paths for the company. The United States is among the largest markets in North America, and it is also among the top 10 economies globally. The steady growth of the economy is expected due to the rising employment hence retail expenditure by private consumers is expected to oversee progress. Tourism and retail sectors are the main contributors to the economy of the country. Retail sales in the country raised by 3.2% in 2015 and there is an expected rise of up to 3,722.4 billion dollars in the year 2020 hence rising at a CAGR of 3.1 between 2015 and 2020. (Business Insights Global) Food and grocery is predicted to be at the forefront with a segment of 47.7% of total retail sales, trailed by clothing, luggage, accessories, and skin care products (15.9%),%), Sports and leisure equipment (2.7%), entertainment software (0.8%), electrical and electronics (9.3%), home and garden products (14.9%), Books, news and stationery (2.6%), health and beauty (2.5%), and Music, video and furniture and floor coverings (3.6%) entertainment software (0.8%) in 2020. (Business Insights Global) Factors like population increase and government policies on reducing tax rates and offering an improved environment for investments are the major driving forces of the growth of the retail industry in the US market. (Business Insights Global)

Threats

Threat – Fast Changing Fashion Trends

The rapidly shifting fashion trends and customer preferences could affect Ralph Lauren since it focusses in fashion apparels and related accessories. The short life cycle of fashion products reliant on inclinations, seasons and vulnerability to uncharacteristic changes in weather conditions are expected characteristics of the fashion industry. For the company to increase and preserve business in the competitive fashion industry, the company has to adjust to the changes swiftly. A variation in trends by the time the products reach the customer can put the business at risks since it produces apparels in advance. The failure to anticipate and identify shifts in trends and brand preferences can result in major financial effects on the company and the market position. The company also faces the challenge of pricing pressure in the supply chain like every other company. The pressure is felt in the introduction of enhanced products at lower prices, reducing prices on existing merchandise, and increase in demands of incentives by retailers. (Business Insights Global)

Threat - Rising Labor Costs in the US

Labor costs which are constantly increasing have an adverse consequence on the margins of the company. Ralph Lauren employed about 23,300 associates to undertake its business operations in the 2017 financial year. (Business Insights Global) The company has increased its employee base to expand its presence. Therefore, the rising costs of labor may affect the stability and efficiency of operations of the company. The rising labor costs are as a result of the government directed increase in minimum wages, the tight labor markets and the high proportion of full-time employees. The federal minimum wage provisions are contained in the FLSA Act. The rate of the minimum wage in July 2017 was 7.25 dollars per hour. (Business Insights Global) The district of Colombia and the 29 states have minimum wages that are above that of the federal rate. The wages range from US$8.25 per hour in Illinois, US$8.1 in Florida, US$8.9 per hour in Michigan, US$9.25 per hour in Maryland and Hawaii, US$10.1 per hour in Connecticut, US$8.25 per hour in Illinois and US$10.5 in California. The minimum wage in Columbia reached US$12.5 per hour. (Business Insights Global)

Part 2—Industry Discussion

Industry Introduction

Ralph Lauren corporation is in the Women’s and children’s Apparel wholesaling industry. In this industry the agents work on buying and reselling goods and products like children’s, infants, women’s and unisex accessories and clothing. operators buy goods and products from manufacturers and resell them with or without any change in the product.(IBISWORLD.com). This industry is very connected to the fashion, and fashion in constantly changing, but why? Why fashion is very different from one generation to another? The answer might be very simple. Fashion is changing because people are changing. People through time are being influenced mostly by popular culture, including movie stars, politicians, athletes, musicians, royalty, as well as popular films, television shows, books and music. All these factors play major role in fashion changing over time. (wonderopolis.org) The main player in this industry is VF corporation. VF Corporation plans, makes and markets items including pants, outerwear, footwear and other clothing. Built up in 1899, the organization is headquartered in Greensboro, NC, and employ around 69,000 specialists, 31,000 of which are situated in the United States. Independent contractors, principally in Asia, make around 78.0% of VF Corporation's items. (IBISWORLD.com) The rest 22.0% is made in the United States, the Caribbean, Central and South America, Mexico and Europe. The organization works through different outstanding brands, for example, North Face, Vans, Wrangler, Lee and Eastpak. These brands all are assembled into fragments (coalitions) that incorporate outside and activity sports, jeans wear, image wear and sportswear. (IBISWORLD.com).

Current performance.

The Women's and Children's Apparel Wholesaling industry has expanded recently. Since 2013 to 2018 interest for clothing has expanded, floated by rising per capita disposable income and enhancing consumer satisfaction. (IBISWORLD.com). During the period, Revenue has increased in the industry because enhancing economic conditions has led to an increase in demand for women’s and children’s apparel. Furthermore, demand and sales size are predicted to stay solid in the present year, as an expected increment in per capita disposable income in 2018 energizes more prominent consumer spending, which mean more deals and money for this industry. In general, industry revenue is predicted to develop at an annual rate of 0.8% to $76.9 billion in the five years from 2013 to 2018. (IBISWORLD.com).

Capital intensity

Capital intensity in the Women's and Children's Apparel Wholesaling industry is low and is expected to stay consistent over the five-year time frame from 2013 to 2018, mirroring the small grow in labor costs and capital investment. (IBISWORLD.com). During the period the Capital investment has been consistent as industry administrators keep on using the same advanced computer systems and technology that intended to screen stock level and make it faster to supply clothing to retailers. In this industry the technology has not seen big changes or updates, therefore the operators did not need to invest to much in the technology to stay up to date. According to IBISWorld wages and depreciation are predicted to stay on the same level during the period, “IBISWorld estimates that for each $1.00 spent on wages, industry operators will spend $0.04 on capital in 2018, the same as its 2013 benchmark. This indicates a low level of capital intensity”. (IBISWORLD.com).

Technology and system

The electronic management of the supply chain has been the essential technological advancement in the Women's and Children's Apparel Wholesaling industry. Electronic data interchange (EDI), radio frequency identification (RFID) and extensible markup language (XML) are the main technologies that wholesalers uses. (IBISWORLD.com).

Revenue and Volatility

Overall, the level of revenue volatility is normal in this industry. The volatility is limited in this industry because of its maturity. In addition, the constant improving economic conditions has led to an increase in consumer demand for apparel which led to a stable growth in the industry's revenue. Nonetheless, the revenue volatility could be affected by consumer confidence and per capita disposable income in addition to consumer trends. (IBISWORLD.com).

Basis of competition

Internal competition

In the Women's and Children's Apparel Wholesaling industry the internal competition is high because of the solid relationship that the significant players in the market have built up with producers and retailers. This kind of relationships with retailers give wholesalers several advantages such a larger selling space devoted to their items which increase income and profit margins.(IBISWORLD.com).

External competition

Regarding external competition, it’s also pretty strong. Wholesalers are having hard time competing with vertically integrated specialty stores and mass merchants who do not deal with Wholesalers in their supply chain. (IBISWORLD.com). The sensitivity of price in retail markets gives an advantage for retailers who manufacture their own products or who are able to get less expensive apparel by buying it directly from the manufacturer because they can reduce a large part of their costs. Since recession, retailers have been trying to reduce costs through several ways. For example they started to buy clothing abroad from countries with low labor costs such as Bangladesh, China and Mexico because it costs less. (IBISWORLD.com).

Key success factors

According to (IBISWORLD.com) there are more than 250 key success factor in business and some of them are highly recommended for this industry. First of all in order to create grow and development in business, a connection or access to dependable manufacturers is very important. Another important factor is the control of distribution arrangements because it gives wholesalers a competitive advantage. Also the Ability to control stock on hand is important because a good control on stock could lower costs and make it easier to deliver promises for customers. Having an extensive distribution/collection network: is substantial factor because an efficient distributed system enhances the ability to reach a higher number of clients. Marketing also is something that shouldn't be ignored. having good marketing team is required for this industry in order to promote your products and achieve more. (IBISWORLD.com)

Part 3—PESTLE Analysis

Political Issues

In 1974 The (MFA) or the Multi-Fibre Arrangment was signed which was an agreement with number of importer countries like the US and exporter countries like China and Bangladesh. The first US bilateral export restraint agreement was signed in 1962 with Japan but over time the number grew up to 40 agreements with 40 different countries by the year 1994. (IBISWORLD.com) limiting imports in the European Union and the US has led to the raising in local clothing prices. However, Ending the MFA in 2005 has led to more imports from low cost countries which led to lowering clothing prices and decreasing revenue. (IBISWORLD.com)

Economic Issues

The improving of economic conditions drives up the industry's growth. According to (IBISWORLD.com) per capita disposable income will increase through the years from 2013 to 2018 with an annual rate of 1.9% and 2.2% only in 2018. Also there will be an increase with an annual rate of 11.5% in consumer confidence through the same time period. The increasing of both per capita disposable income and consumer confidence results in a higher consumer spending in the local market.(Ibisworld.com) anticipated a grow in the consumer spending in the time period from 2013 to 2018 with an annual rate of 2.9%. (IBISWORLD.com)

The practice of Acquiring different steps of the supply chain by the main players in the industry is called the vertical integration. This practice has decreased the demand an revenue growth in the industry and lowering prices is one of the measures taken by the industry operators to combated this trend. But in the other hand this measure caused a decrease in revenue and profit margins. According to (IBISWORLD.com) there is an expectation of deduction in the average profit margins from 5.2% in 2013 to roughly 4.7% in 2018. Overall, the economic condition is affected by several factors that could drives it upward or downward.

Social Issues

There are several trends that affects this industry such as demand from department stores. Department stores like Macy's, Kohl's and Nordstrom retail a broad range of general merchandise, including apparel. The increase in demand for departments stores means also an increase in demand for wholesalers. In addition, according to (IBISWORLD.com) in 2018 there will be a decrease in demand for departments stores. Demand from Women’s clothing stores is also an important trend in this industry. In this industry wholesalers rely on the demand from retailers and retailers rely on the consumer demand for women and children’s apparel and accessories. According to (IBISWORLD.com) The demand for women and children apparel will continue to increase as long as the economy is improving. All these three trends in addition to several more play a major rule in driving this industry either upward or downward.

Technological Issues

The electronic management of the supply chain has been the essential technological advancement in the Women's and Children's Apparel Wholesaling industry. Electronic data interchange (EDI), radio frequency identification (RFID) and extensible markup language (XML) are the main technologies that wholesalers uses. (IBISWORLD.com).

Wholesalers these days can save lots money in important fields such as, maintenance, sorting and handling packages, repair and returns processing and inspection by using technologies like speech recognition technology which is available in tablets and portable computers. (IBISWORLD.com). In addition, (CRM) tools or in other word, cloud-based customer relationship management tools are becoming popular in between wholesalers because it offers more moderate ways to attract, sell and serve customers which empower small companies to compete with the bigger companies in the industry in more efficient way. (IBISWORLD.com) Overall, technology is an important factor in this industry and the constant technological improvement helps this industry to grow and prosper.

Legal Issues

One of the biggest legal issues that faces Women's and Children's Apparel Wholesaling industry is the Patent infringement. Wholesalers should adhere to the US Patent and Trademark laws, that aims to preserve intellectual rights. Patent infringement is illegal and there are deterrent penalties for violators. And in order to provide the necessary protection for original fashion designs in 2012, the Congress issued the Protection of Design Initiative Act. (IBISWORLD.com) The act also provides the necessary protections against the untrue claims that would pointlessly trouble industry operators.

Environmental Issues

Using fur has been one of the major environmental issues that faces Women's and Children's Apparel Wholesaling industry. According to (www.business of fashion.com) every year 50 million animals are slaughtered in order to use fur in the garment industry which is considered unethical and cruel by anti-fur activists and animal rights. The fur traders on the other side has a different point of view. They believe that it’s a natural, sustainable material which supports millions of people worldwide to earn living. Also the trade of fur is an economic force that cannot be underestimated where it's sales reached 13 billion Dollar globally in 2009. (www.business of fashion.com) Furthermore, a number of fashion celebrities have changed their point of view regarding the trade of fur which made harder to reach an agreement between the two sides of the case.

Part 4—Problem Analysis & Description

Gap 1

The First gap that faces Ralph Lauren corporation is The large number of retail stores. According to (www.statista.com) Ralph Lauren Corporation in 2016 was the number one in America regarding the number of retail stores. In 2016 Macys had 54 stores, Nord Strom had 119 stores when Ralph Lauren alone had around 270 stores across United States. The number of retail stores used to be huge advantage among competitors, but now days it is different. The average sales from retail stores is less while it costs the company a lot of different expenses such as, utilities and labor cost. All of these costs affects the company’s revenue, for example, Ralph Lauren revenue in North America in 2014 was 4983 million in 2015 it was 4645.7 million with a decrease of 6.7%. In 2016 the revenue was 4493.9 million and decreased with around 15% to reach 3795 million in 2017. (www.statista.com) The large number of retail stores has led to the decrease in revenue for ralph Lauren.

Gap 2

The Second gap that faces Ralph Lauren corporation is the increase of online shopping. According to (ibisworld.com) online stores provide clothing with big discounts for customers which is very attractive. Less price, less effort and the same good quality is what makes online stores are preferred for customers in the present. The increase of online shopping means less shoppers in retail stores which leads to a decrease in total revenue. The number of online shoppers has been growing rapidly in the last couple years due to several factors such as the advanced technologies and the increase of internet users. RL did not follow the trend of online shopping. In fact, they focused on increasing retail stores which led to decrease in revenue because of the change in shopping habits. According to (www.statista.com) online shopping is a thriving market. The number of online sales in the apparel and footwear industry was 32% of the total sales. (www.statista.com) The number of online shoppers in the United states is also increasing every year and expected to almost double between the years 2016 and 2200.

Gap 3

The Third gap that faces Ralph Lauren corporation is its low number of Retail e-commerce sales. Retail e-commerce has been growing both domestically and globally in the past years. And if a company wanted to maintain its position among its competitors it has to focus on online sales. According to (www.statista.com) the number of Retail e-commerce sales in the United States in 2016 was 360,327 million and it increased to reach 409,208 million in 2017 And its also expected to increase in the year 2018 to reach 416582 million. Ralph Lauren’s position between its competitors regarding e-commerce retail is very bad. The total number of RL revenue from online retail was only 611 million in 2016 while its competitor Gap had a total revenue of 2,530 million Dollar which is four times more than Ralph Lauren. (www.statista.com) Ralph Lauren needs to increase sales from the different online sales channels in order to increase revenue and decrease expense and to keep up with the competitors.

Problem Statement:

Ralph Lauren corporation has failed to increase or to maintain its revenue from retail stores and it also failed to follow the trend of online shopping. RL also failed to compete with its competitors in the field of online sales.

Part 5—Solution, Evaluation & Recommendation

Solution 1

Decreasing the number of retail stores nationwide is one of the possible solutions to decrease expenses and increase profit. This solution can be effective because these days there are several sales methods other than the normal retail stores that has a lot of expenses.

Solution 2

Focusing on E-commerce can also be an effective solution. A large percent of customers these days prefer to shop online rather than shopping from retail stores due to several reasons. Therefore, focusing on E-commerce will attract more customers and will increase revenue.

Solution 3

Marketing is a very important part of every business and trying new marketing techniques can help to attract new customers to your business. Increasing the number of customers will lead to an increase in sales and revenue from the multiple sale channels that you provide.

Weighted Table

Cost Benefit Analysis

-Focus on E-commerce

Tangible

Intangible

Cost (-)

· Cost of technology

· Ongoing maintenance

· Communication expense

· Cost of consultancy support

· Running costs

· Brand reputation

· Consumer Satisfaction

· Employees Satisfaction

· Neglect traditional retail stores

Benefit (+)

· Increase sales

· Increase market share

· Reduce Administration costs

· Cash flow improvement

· Increase competitive advantage

· Brand reputation

· Increase employees productivity

· Consumer Satisfaction

Part 6—Implementation & Success Metrics

Decreasing the number of retail stores, focusing on E-commerce and trying new marketing techniques are three ways for Ralph Lauren to increase revenue and decrease expenses. First, decreasing the number of retail stores will decrease the overall expenses and will save some money that can be used on E-commerce. This way some retail stores will be replaced with a better online shopping experience for Ralph Lauren customers. This will increase the E-commerce sales and the company’s revenue. In addition to the first two solutions, trying new marketing techniques will attract new customers for the company which will lead to increase sales from the multiple sale methods.

Stakeholder Analysis

1. Government

2.Community

3.Environment

4.Customers

5.Employees

1