Internal Analysis Of Coach Has Built Its Business

1706 WordsNov 12, 20157 Pages
Internal Analysis Coach has built its business based on their ability to minimize their cost while maximizing their customers perceived value. In order to minimize their cost, Coach found it most cost effective to outsource their manufacturing overseas. With such a far distance between their home location in the United States and their manufactured products, Coach implemented management controls near the locations of production. This helped ensure that production runs smoothly and that the quality of the products was up to Coach’s high standards. Coach also has a large amount of stores in Asia and India where a large amount of their manufacturing occurs. Having such close proximity to those stores allows Coach to minimize the risk of…show more content…
As mentioned above, Coach is amongst the cost leaders in their market due to their ability to minimize cost by outsourcing all of their manufacturing. This is one of Coach’s greatest strengths because they are able to have their quality products made at such a low price that they can undersell their competitors by about fifty percent and have a different target market. Being able to sell to the top 20 percent of Americans, as opposed to the smaller demographics of their competitors, has been another one of Coach’s biggest strengths (Gamble, 2015, Page 82). With such a strong brand image in the “affordable luxuries” market, Coach found potential in the men’s luxury good market. In 2011, Coach increased their products for men from 2.5 to 5 percent of its global sales and expects those numbers to continue to grow (Gamble, 2015, Page 82). This new market gives Coach an opportunity to use some of the strengths they’ve found in the women 's market such as product differentiation. Product differentiation is one of Coach’s greatest strengths because of its ability to get their consumers in their stores more frequently and make purchases more frequently. “Monthly product launches enhanced the company’s voguish image and gave consumers reason to make purchases on a regular basis” (Gamble, 2015, Page 79). These monthly product were only available for a limited amount of time, which helped increase their perceived value due to
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