Burberry Assignment
There are certain drawbacks that Burberry should expect to arise such as lack of control in
regards to pricing, brand image, etc., from the licensing agreement with Sanyo Shokai.
The first factor was pricing strategy that was implemented in Japan by Sanyo Shokai. The
prices of Burberry products were much lesser in Japan, and other international countries and
markets, compared to the United Kingdom where products were priced as a luxury item. I truly
believe the pricing strategy should have been implemented in the contract from the beginning
and the control elements from the contract would have been identified. This pricing caused
problems because their product was priced much lower than the company charged in the UK.
The other factor is that the contract gave Sanyo Shokai choice about using the brand, it means
