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Management 6 Pages

Case Questions Based On Coach Inc 2012 Case Study

Question

Case Questions 

1. List and elaborate some strategic issues facing Coach Inc.? (One small paragraph listing top 5 strategic issues for Coach). 

2. What are the key elements of Coach’s strategy? 

3. Please apply Porter’s Five Forces model to the luxury goods industry. While doing so, clearly identify who is behind each force – for instance Suppliers, Buyers, Substitutes, Competitors, etc. And what is the impact of each force on the profitability of the industry – in terms of the following levels - High/Medium/Low. At the end, also provide a summary of all the five forces and propose whether you think the luxury goods industry is attractive industry or not an attractive industry. 

4. Evaluate the sources of Coach’s competitive advantage and determine whether or not the company can sustain its advantage. 5. Elaborate some of the key lessons you have learnt from the case analysis?

Solution

Title: Case Questions Based On Coach Inc 2012 Case Study
Length: 6 pages (1680 Words)
Style: APA

Preview

Coach Inc. in 2012

Coach is a company that was established in 1941 by a small family that had a leather goods manufacturing and distribution business. The Coach later grew to become a widely recognized company that brand that was known by people as a quality goods provider. It has grown big to be a leading producer of women's handbags, accessories, footwear, jewelry, watches, and fragrance. The company operates in two segments, the direct-to-customer, and the complicated sales process.

1. List and elaborate some strategic issues facing Coach Inc.?

There are many challenges that this company faces in its course for the manufacture of satisfactory products to customers, and they include:

The brand problem caused by factory stores; the company is so much reliant on factory stores, retail shops and also departmental stores which have been a significant problem. There are less full price Coach bags on the street compared to the many factory stores, and this factor leads to brand dilution.  There exists drastic changes in the socio-cultural behavior, attitude, and lifestyles of people and this poses a risk to the strategic styles of the organization.

Coach continues to value the company brands as highly as possible despite the decline in the world market.However, the company has experienced declining competitive advantage over other luxury goods industries and women handbag companies. This strategy does not allow the company to perform well regarding sales in North America and extensively to Asia.

Financial resourcing, the company at some point tend to borrow money to generate funds for may be the expansion of the enterprise. This is at the end costly as the returns are usually accompanied by interests in the other companies or firms they borrowed the funds.

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