Coach Inc Case Preparation Essay

discipline Inc. Case PreparationKey FactsLow cost provider dodgingFocused on matching key high life rivals in tonus and styling while beating them on price by 50 pct or more competitive advantage Multichannel distribution model (indirect whole gross sales to third-party retailors vs. direct-to-consumer sales. Priorities emergence global distribution and meliorate same-store sales productivity Build food securities constancy share in NA, JapanRaise brand awareness and attain share in underpenetrated markets Increase sales of products targeted towards menCreate an online marketing presence using coach.com, etc4.2 billion in sales in 2011 (20 per centum annual increase)63 part were handbags, 27 percent accessories, 10 percent some other products 16.7 million to 880 million in net income2012 direct-to-consumer accounted for 87% of 2011s net sales, indirect wholesaler had net sales of 540 million pusher, Inc. in 2012 Its strategy in the accessible luxury goods market1. Desc ribe the large environment of the luxury goods industry. Political Factors The market in China was cut back for some time by the Chinese government Economic Conditions the frugal downturn in 2007-2009 hurt the luxury goods industry Sociocultural Forces sound/green movement, more conservative with money after the downturn etc technological Factors more ways to talk to consumers, provide brand awareness, and allow consumers to deprave (websites, mobile apps, etc.) Environmental Factors weather not really a worry in the luxury goods industry Legal/Regulatory Conditions none mentioned in the case really, other than the counterfeit laws which are in place to support the luxury goods industry2. What are the defining characteristics of the industry? What is the industry alike? Defining characteristics of the industry/what is the industry like includes many competitors, growing use up as middle class and upper class expand, diversity in luxury products (using your brand name andatt aching it to other products/lines i.e., mens products for coach).3. How is the market for luxury handbags and leather accessories changing? What are the underlying drivers of potpourri, and how can these forces change the industry? The market doesnt seem to be changing real much, maybe expanding as more money and other countries are decent 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 couthie bags/processes.4. What key factors determine the success of makers of fine handbags and leather accessories? KFSs are versatile products, ahead of trends (fashion), marketing research, lower price point than competition, brand consignment/recognition/awareness5. What is competition like in the industry? Which of the quintet competitive forces is the strongest? Which is the weakest? What i s the industrys capability 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-pitched 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 Industrys potential for profitability is high, markets are large and expanding, their sales are already high etc.6. What does your strategic group present of the industry look like? The three main categories haute-couture, traditional luxury and accessible luxury The first two are not where Coach competes but where some of its competitors are, where they have created other product lines that compete in the accessible luxury category. DKYNY, Calvin Klein, Louis Vuitton, (last two created diffusion lines) are competition in the accessible luxury category7. What recommendations would you make to Lew Frankfort to improve the callers competitive position in the industry and its market instruction execution? Follow their current plans and strategies to open up and pursue growing markets to improve market performance, and increased market share will help their competitive position.