Coach Inc

1060 WordsDec 29, 20105 Pages
Coach Inc Question 1: Luxury goods industry based on high quality goods with high price along with brand recognitions, as customers need to feel good about spending their money. The industry includes drinks, fashion, cosmetics, fragrances, watches, jewelry, luggage, handbags. Question 2: The competition in this industry is intense as the differences between the companies becoming less, and the market it self is expanding, therefore, it is important to gain a better section of the market share to maintain sustainability. For instance, Companies are using the internet, among other methods, to introduce their newest catalogues. Also using a new method of pricing & offer economy level of product, plus offering the good in…show more content…
Coach leverages its factory stores to move this inventory but this result in large inventories. Stores are located in select regions of the US and Japan, Coach relies of wholesale sales to department stores to move additional inventory. Another weakness in this industry is its dependence on seasonal market; this could affect availability of cash. Couch Inc.’s market opportunities include opening stores in the International markets will further increase Coach Inc.’s market share and enable the company to better endure regional economic downturns in the US and Japan. Leveraging its image of High Quality Coach can push into other markets and product lines with less risk. Customer acceptance of high quality creates less resistance to accept a new product from the company. We think that the luxury goods market is very sensitive to economic conditions. Customers who are not as comfortable or upbeat about the economy tend to spend less or by cheaper substitutes. Recession or poor consumer confidence in the US or Japan could result in a decrease of sales for short or long periods of time. Also, strong competition from other companies creates further pressure to lower prices and reduce net income. Italian and French handbag makers have a history of being favorites of women seeking fashion. Coach will continue to see these companies as a threat as each attempt to regain customers.

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