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

Company-operated a total of 3,022 store locations. Its stores offer a shopper friendlyenvironment with an assortment of casual apparel and accessories that emphasize style,quality and good value. The Company's stores are open seven days per week and on mostholidays. All sales are tendered for cash, personal checks, debit cards or credit cards,including Gap, Banana Republic and Old Navy private-label credit cards that are issuedby a third party.SWOT AnalysisStrengths:Polo Ralph Lauren’s strengths lie in its brand equity, infrastructureimprovements, its history, and it’s financial strength.High Brand Recognition: Ralph Lauren’s brand name and Polo’s logo are bothrecognizable and highly regarded in the fashion world. Polo Ralph Lauren’s classic stylehas allowed the company to expand its product portfolio into markets beyond clothing,and into apparel, scents, and home furnishings. High customer loyalty allows for a largerprofit margin than most other companies in its industry. The powerful brand equityresponsible for such a strong consumer following reduces the price sensitivity for retailsales, which was a strong factor in maintaining good performance during the recentrecession.Infrastructure Improvement: Polo Ralph Lauren has been finding new ways to reducecosts through changes in its infrastructure, primarily in Europe. Sales in Europe haveshown little growth, but several distribution centers have been consolidated to increaseefficiency and growth. New cross-stocking merchandise methods at the North Americandistribution center in North Carolina have reduced costs for American distribution.Respectable History and Future: By consistently setting the fashion standard for threedecades, Polo Ralph Lauren’s products remains in high demand and new fashion lines areanticipated among customers.9