Case Study : Coach Inc. Essay

Decent Essays
Coach Inc. targets itself in a challenging position, and it has been at the forefront of the rise of ac-cessible luxury goods for the past few years. Luxury depends more now then ever on word-of-mouth promoters who share their taste and experiences with consumers who expect every interac-tion in stores, on line and on mobile. Brands are investing alot more in top management talent from strategy to finance the supply chain and the back office operations. The store employee now serves as brands’ direct face to shoppers with brand expending significant resources on training and devel-opment of people in front of the lines (Bloomberg, 2016). Force Strategic Significance

Internal Rivalry ——> High
Threat of New Entrants ——-> Low
Substitutes and Complements ——-> High
Supplier Power ——> Low
Buyer Power ———> High

Internal Rivalry (High)

Coach Inc. is one of the dominating brands that are in the leading position of the affordable-luxury handbag market in relations to the overall annual sales results, but at the same time it faces harsh rivalry from its competitors. Some of the direct competitors in the North American market, such as for example Michael Kors or Kate Spade, have seen a drastic increase in popularity as of late, giving rise of concerns over Coach’s future market share. At the same time, Coach has strug-gled alot to compete against many of the leading European fashion companies such as Salvatore Ferragamo, Armani, Versace, Louis Vuitton, Gucci, and Longchamp. The
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