Business Valuation of Polo Ralph Lauren Corporation - Mark Moore ...

Ralph Lauren lifestyle through new products, in new categories and in new parts of theworld.Specialty Retail: Polo’s retail strategy starts with product and Ralph Lauren continues todesign the best and most sought-after products in the marketplace. Polo continues toincrease the amount of exclusive or limited-distribution product in its Ralph Laurenstores. By adding experience and strength to the leadership of the specialty retail groupand coupling it with the right merchandise and marketing support, Polo is makingsignificant advances in how it operates its retail stores. Polo has also developed a strongreal estate and store strategy including the opening of 50 to 60 stores over the next fiveyears in the United States and 20 to 25 stores in Europe.Expanding International Presence: International expansion presents a wealth ofopportunity for Polo Ralph Lauren. Their approach to each world region is specific to itsbusiness climate and structure, while the common goal is to broaden their reach throughincreasing direct brand ownership and control with new specialty retail store openings.The strong, flexible infrastructure allows Polo to capitalize on opportunities and growbusinesses around the world.Threats:Two threats facing Polo Ralph Lauren are the seasonal competition of departmentstores and the Jones New York lawsuit.Department Store Competition: Women’s wear competition is increasing for the springand summer seasons for department store sales. Polo will have to compete with LizClaiborne’s Realities and Tommy Hilfiger’s new H women’s apparel lines. Jones NewYork has also launched the Signature clothing line, which is modeled after RalphLauren’s clothing line.Current Lawsuit: Jones New York filed a lawsuit against Polo Ralph Lauren worth $550million for a breach of a licensing agreement. Polo invoked their agreement with JonesNew York and dropped the company as a licensor of Ralph and Lauren fashion lines, due11