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Eastern Academy of Management International 2019 Conference

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SANYO SHAKAI: AFTER LOSING THE BURBERRY LICENSE WHAT’S NEXT?

The president of Sanyo Shokai announced that the firm would end its 40-year-old licensing agreement with Burberry. Sanyo Shokai sold clothing under the Burberry label in its Japanese retail outlets. They needed to convert or close boutiques. 50% of the company’s sales and the majority of profits were made with Burberry labels. The stock declined by 30%, from 310 to 210 yen per share. This descriptive case ends with the president mulling over what factors might have caused Burberry to terminate the long-term licensing agreement and what actions should be taken to make sure the company rebounds.

Craig Davis
Ohio University
United States

Nakato Hirakubo
Brooklyn College
Japan

George Whaley
San Jose State University
United States

 


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