Case Study : Coach Inc.

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Introduction Coach Inc. has been in business since 1941 when it was started out as a family- run workshop in a Manhattan loft where six skilled workers made hand-crafted leather goods. The skills of these people came had been passed down for generations and soon consumer came to invest in the high quality and uniquely made goods. The company started out by selling small leather goods, but in the 1960s, introduced cowhide purses that we know today as their trademark. Business Plan Since the beginning Coach Inc. has expanded exponentially and continues to grow at an estimated rate of approximately 14 percent per year. Their strategies for continuing to grow as a company are to transform into a lifestyle brand, increase their global…show more content…
To do this, they use a constantly growing database that contains over 19 million households in North America and 8 million households in Asia. Using this information, they are able to distribute over 1.2 billion emails and millions of catalogs worldwide. Even with this system available there is always room for improvement especially in e-commerce. To make these improvements, they will use digital strategy, coach.com, global e-commerce sites and programs, third party flash sites, marketing sites, and social networking. Coach is an asset light business, meaning that they have less collateral then a normal for a business of its size, but it is constantly growing and produces high returns, margins, consistent free cash flow. They also have low reinvestment need. In the past 10 years, they have encouraged about 20 percent of growth per year in sales and shares. Coach is overall a very liquid company, meaning that the majority of its assets are able to be sold quickly without value decrease, and it has a good amount of financial leverage. Macro-environmental Analysis Politically, Coach is aware and must continue to be aware of the laws, rules, and regulations that arise when it comes to business and sales. With this knowledge, they must use this information and stay within these guidelines when making decisions. This includes acting ethically as well as following the rules and regulations. These
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