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Coach

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Submitted By weavez5139
Words 1590
Pages 7
Memo To:
From:
Date: 10/01/14
Class: Management Policy
Topic: Assessment of Coach
What are the dominant economic characteristics of the luxury goods market? Does it appear that the industry’s prospects for growth and attractive profits are good?
There are a couple of dominant economic characteristics when it comes to a luxury good. First off, any luxury good is going to have a very high elasticity within the market. The better the economy is doing will result in more sales in any luxury market. However, the opposite is also true. If an economy is tanking, luxury products such as coach will usually be hit hard as far as sales go. Another major characteristic is globalization. Globalization for a luxury goods market is key to success. Not only having their product available all over the world, but being able to obtain the finest goods to produce the highest quality product possible. The most important characteristic of an economic good in my opinion is socioeconomic significance. Buying any luxury good allows a person to show their public status to others. People in today’s world like to show off how much money they have or their purchasing power by buying very expensive items such as a $10,000 dollar purse.
If any luxury company is prospected to grow, it is a very good economic indicator for anyone. This means society as a whole has more disposable income in which case people are able to buy these ridiculously overpriced items. I believe majority of people purchase these goods for the public status symbol. Being able to brag about wealth, without actually saying anything. However, in the long run as long as luxury markets are reporting growth, it is almost always an indicator of better economic times for everyone.
How strong are the competitive forces confronting Coach and other accessible luxury market participants? Which one of the five competitive

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