Coach Inc Case Preparation Essay

611 Words Sep 22nd, 2013 3 Pages
Coach Inc. Case Preparation:
Key Facts:
Low cost provider strategy
Focused on matching key luxury rivals in quality and styling while beating them on price by 50 percent or more; competitive advantage
Multichannel distribution model (indirect wholesales to third-party retailors vs. direct-to-consumer sales.
Priorities increase global distribution and improve same-store sales productivity
Build market share in NA, Japan
Raise brand awareness and build share in underpenetrated markets
Increase sales of products targeted towards men
Create an online marketing presence using coach.com, etc
4.2 billion in sales in 2011 (20 percent annual increase)
63 percent were handbags, 27 percent accessories, 10 percent other products
16.7
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What are the underlying drivers of change, and how can these forces change the industry?
The market doesn’t seem to be changing very much, maybe expanding as more money and other countries are becoming wealthier (India). Drivers of change are new internet capabilities and applications, product and marketing innovation, changing societal concerns, attitudes, and lifestyles
Different wants handbags for the more on the go lifestyle, environmentally friendly bags/processes.

4. What key factors determine the success of makers of fine handbags and leather accessories?
KFSs are: diverse products, ahead of trends (fashion), marketing research, lower price point than competition, brand loyalty/recognition/awareness

5. What is competition like in the industry? Which of the five competitive forces is the strongest? Which is the weakest? What is the industry’s potential for profitability?

Many competitors in the luxury goods industry.
Strongest of the five forces I believe is rivalry, competitive pressures come from other firms in the industry, competitors numerous equal size and competitive strength, face high exit barriers, diverse countries of origin
Weakest of the five forces I believe is potential new entrants, because brand recognition is so important in the industry
Industry’s potential for profitability is high, markets are large and expanding, their sales are already high etc.

6. What does your strategic group map of the

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