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Risks
1. Competitor Strategy: Given the competitive nature of the retail market in which Ralph Lauren operates, its marketing strategy may not align well with that of its competitors, leading to a decrease in sales and market share.
2. Brand Over-saturation: Ralph Lauren’s aggressive marketing strategy may lead to an oversaturation of the brand in the minds of consumers, leading to decreasing brand recognition and sales.
3. Pricing Strategy: Due to the high cost of marketing campaigns and commitment to premium prices, Ralph Lauren may be unable to increase sales as expected due to their expensive marketing and pricing strategies.
4. Market Fragmentation: Ralph Lauren’s global size means their marketing strategy must appeal to a wide range of demographics and interests around the world, which can be difficult to achieve.
5. Diversification Risk: Ralph Lauren’s product diversification strategy has the potential to diminish the brand’s quality reputation if the company fails to create quality products in the new lines.