...Title: Managing Business Assignment Number One Module Code: 244SAM Assignment Title Coach Inc. Submission Date: 29/01/2016 (FT) 03/02/2016 (PT) Module Leader Jasper Tham Module Team N/A Submission Submission through Time and Place: Turnitin no later than 23:55 on the above date. Module learning outcomes being assessed LO1. Explain and assess the nature of the changing business environments. LO2. Propose, evaluate and communicate strategic options available to an organisation. Assignment Information This individual assignment requires you to write a 2500 word original assignment answering the following question/s: Task Consider the case of Coach Inc. in regards to its business strategy in the luxury goods market. Coach Inc. case is a popularity brand among young adult women. Industry statistics presented in the case indicated that young professionals are among the most frequent purchasers of “accessible luxury” goods such as Coach handbags. The case contains ample information for conducting an industry analysis and company situation analysis. You will be able to conduct an industry analysis (dominant economic characteristics, driving forces, five competitive forces and key success factors) and use the tools for company situation analysis (assessment of how well Coach’s strategy is working and SWOT analysis). The information in the case is to help you to understand or to analyse so as you can recommend the business...
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...Coach Inc.’s Internal Assessment Appendix Company’s Vision and Mission Vision: Aim to be the leading brand of leather goods and accessories in affordable luxury market Mission: Ensure that the Coach brand remains a premier, distinctive and easily recognizable brand by delivering a consistent message to the customer through communications (coach.com, global e-commerce sites and social networking sites) and visual merchandising while protecting the brand from counterfeit goods Objectives * drive growth and increase market share by expanding their distribution channels to reach local consumers in emerging markets and leveraging the global opportunities * multichannel distribution model and increase global distribution * improve same store sales productivity and increase sales of products targeted toward men * build market share in North America, Japan through the addition of new stores * Raise brand awareness and build market share in underpenetrated markets such as Europe, Asia and South America * Anticipate consumer changing needs by being “consumer centric” through the use of extensive customer research and surveys to innovate to create customer and shareholder value * matching key luxury rivals in quality and style while pricing the goods at 50 percent or more cheaper than competitors Strategic Objectives Business Level Strategy * Product differentiation – “accessible luxury brand”. It can defend against new entrants since they...
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...Coach SWOT Analysis Tiffany Smith Columbia Southern University Coach, Inc. is a company that produces and sells luxury accessories for men and women. Coach markets itself as the leading American luxury leather goods company. It specializes in the design and marketing of handbags and accessories worldwide. Its product include handbags, womens and mens accessories, such as money pieces, wristlets, cosmetic cases, key fobs, belts, electronic accessories, wallets, as well as, other leather accessories It is a publicly traded company that began in 1941 as a family owned business. Today, Coach is available in five continents in over 1,000 directly operated stores. Products are also sold at department stores and outlet stores (Coach, 2015). Strengths Coach, Inc. brands itself as the leading luxury leather goods company in the United States. The company began in 1941, so it has over 70 years of designs to use or recreate. Due to the long history, Coach has developed a reputation among for quality products and become one of the most recognized brands in the accessory world. Throughout its history, the company has insisted on quality and value, therefore retaining loyal customers who buy its products. (Coach, 2015). Coach products are available in locations globally including: Directly-owned and operated Coach Retail and Outlet Stores in North America, Asia, and Europe, through Coach website, along with informational websites for over 20 other countries, and Coach stores located...
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...Coach Company Analysis Recommendation: Sell Coach The current recessionary environment has had a strong negative impact on individual income levels, consumer spending and consumer credit availability. As a producer of high priced luxury goods Coach stands to suffer from the state of the economy as conspicuous consumption is frowned upon and consumer frugality is in fashion. These are factors that significantly impact Coach’s financial outlook as the company has experienced declines in both same store sales as well as earnings from fiscal 2008 to fiscal 2009. Coach’s gross margins are also shrinking as the company has had to increasingly rely upon its factory outlet stores to sell its products[1]. This also presents the problem of brand dilution. From a valuation perspective Coach’s P/E ratio, currently at 18.23, is well above the apparel industry average of 3.26, which suggests that from a relative valuation perspective the company may be overpriced[2]. Furthermore, the DCF analysis indicates an intrinsic value of approximately $35.00 while the current share price is $38.27 (3/11/10 close). Based on this quantitative data the stock is currently overpriced and has very little upward potential within our investment horizon. The stock’s price has increased over 200% in the past year and has been fluctuating between $34.00 and $37.00 since October (please see Appendix 1). The alpha from this stock was fully extracted in 2009 and the Coach holdings have run their course...
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...Management – MBA – Fall 2014 – PAPER GUIDELINE Research Paper # 1 – “Coach Inc. in 2012. Gamble et al., pp. 287-298. This paper is worth 25% of total grade, due Monday September 29th via the “Assignments” link on the Blackboard no later than 11:00 p.m. After 11:00 p.m. the link will no longer be operational. PAPER WILL NOT BE ACCEPTED VIA EMAIL. Make sure that you understand and follow the instructions in “A Guide to Case Analysis” posted in the “Course Documents” link. Please remember that analyzing a case does not mean to write up a history of the firm - please refer to the “Guide to Case Analysis” p. 2, under “Identification.” The Coach case provides an excellent example of a best-cost strategy discussed in Chapter 5. It contains ample information to conduct an industry analysis: dominant economic characteristics, driving forces, Porter’s Five Competitive Forces (chapter 3), SWOT analysis, VRIN framework (chapter 4), five generic competitive strategies (Chapter 5), etc. Start with an analysis of the industry (reading the case you will recognize the other companies in the industry) – identifying the dominant characteristics, doing a five forces analysis, assessing the impact of driving forces, and identifying the key success factors. Then you can proceed to look at the company’s strategy, do a SWOT analysis, and conclude with recommendations. The following questions MUST be addressed in the case analysis: 1. What are the defining characteristics of the luxury...
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...Coach Company Analysis Recommendation: Sell Coach The current recessionary environment has had a strong negative impact on individual income levels, consumer spending and consumer credit availability. As a producer of high priced luxury goods Coach stands to suffer from the state of the economy as conspicuous consumption is frowned upon and consumer frugality is in fashion. These are factors that significantly impact Coach’s financial outlook as the company has experienced declines in both same store sales as well as earnings from fiscal 2008 to fiscal 2009. Coach’s gross margins are also shrinking as the company has had to increasingly rely upon its factory outlet stores to sell its products[1]. This also presents the problem of brand dilution. From a valuation perspective Coach’s P/E ratio, currently at 18.23, is well above the apparel industry average of 3.26, which suggests that from a relative valuation perspective the company may be overpriced[2]. Furthermore, the DCF analysis indicates an intrinsic value of approximately $35.00 while the current share price is $38.27 (3/11/10 close). Based on this quantitative data the stock is currently overpriced and has very little upward potential within our investment horizon. The stock’s price has increased over 200% in the past year and has been fluctuating between $34.00 and $37.00 since October (please see Appendix 1). The alpha from this stock was fully extracted in 2009 and the Coach holdings have run their course...
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.....................................................................................................3 SWOT Analysis .............................................................................................................4 Global Expansion & Challenges ....................................................................................6 Coach’s Competitors ......................................................................................................9 Industry Analysis ......................................................................................................... 11 Short-Term Recommendations ....................................................................................12 Long-Term Recommendations.....................................................................................13 Conclusion ...................................................................................................................14 Bibliography ................................................................................................................16 2 Executive Summary Company Overview Coach, Inc. is a preeminent US-based leather goods and accessories company providing diversified merchandize comprising handbags, wallets, men’s and women’s accessories, outerwear, scarves, fragrance, just to name a few. The firm was founded in 1941, and it was in 2000 that Coach became a publicly traded company listed on New York Stock Exchange. As of...
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...Coach, Inc.: Is its Advantage in Luxury Handbags Sustainable? Prepared by: Date: June 10, 2014 SWOT Analysis Strength Weakness Brand Image Change in fashion trends Quality made products Diverse product line Pricing at 50% or more less than competitors Men’s accessories: 2% of sales Strong distribution capability Outerwear: 2% of sales Monthly product launches Business cases/luggage: 1% of sales Licensing agreements with other companies to make Coach-branded items Royalties: 1%; 2%; 1% of sales Diverse product line Regular customer service training programs Special Request service Customer loyalty International locations Opportunities Threats Increase online sales Counterfeiting Global expansion plan Consumers: knowingly buying counterfeits Consumers: NOT knowingly buying counterfeits Competition Economic recessions After examining the SWOT Analysis, it is obvious that Coach’s strengths far outweigh their weaknesses. Miles Cahn founded Coach in 1941. Cahn was a leather artisan who began producing ladies’ handbags with the aid of his family in their SoHo loft in New York City. For a family owned company to remain in business for 44 years, it is evident that Chan created a quality product that endured the test of time. When Cahn sold Coach to Sara Lee, she took the company to the next level of greatness. Granted, her first triumph took place over a decade later when she promoted Lew Frankfort to the head of the handbag...
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...Table of Contents Executive Summary 3 Industry Success 3 Coach Strategy 3 Company and Industry Overview 4 Company Overview 4 Industry Overview 5 Apparel and Accessories Industry 5 Luxury Products Industry 5 Michael Porter’s five forces model 8 Competitive Force 1: Rivalry among Competing Sellers (Moderate) 9 Competitive Force 2: Threat of New Entrants (Low-Moderate) 9 Competitive Force 3: Threat of Substitute Products (Moderate-High) 10 Competitive Force 4: Bargaining Power of Suppliers (Low) 10 Competitive Force 5: Bargaining Power of Buyers (Low) 11 Industry Driving Forces 11 Increasing Globalization 12 Marketing Innovation 12 Changing Societal Concerns, Attitudes, and Lifestyles 13 Key success factors 13 Cost 13 Quality 14 Brand Image 14 Competitive strategy analysis 14 Vertical Integration 15 Transaction Cost Economics 15 Cooperative Strategies 16 Offensive Strategies 16 Defensive Strategies 17 First Mover Advantages 17 Financial Effects 17 SWOT Analysis 18 Strengths 19 Good Position – Strong Brand Image of “Affordable Luxury” 19 Excellent Customer Service 19 Strong Performance despite Weak Economy 19 Comprehensive Distribution Channels 19 Strong Financial Position 20 Weakness 20 Geographic Concentration 20 Dependence on Independent Manufacturers for Procuring Merchandise 20 Declining Operating Margins 20 Opportunities 20 Expanding Market 20 Joint-venture 21 Gaining Higher Revenue by Increasing Online Sales 21 Threats 21 Counterfeit...
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...Fitch. ANF operates in the US, the UK and Canada and is headquartered I New Albany, Ohio with over 20,000 employees. As a “near to luxury” retailer, ANF operates in an apparel industry which straddles high to low end merchandise. Its’ main competitors include : American Eagle, Aeropostale, Gap and J- Crew. Their focus on capturing a young market has created a rivalry, which forces them to be innovative and creative in delivering fashionable mechandise. As a result, their competitive strategy involves not only marketing their products through stores, but via catalogs and e- commerce activites. SWOT ANALYSIS, ABERCROMBIE AND FITCH A scan of the internal and external environment is essential in any firm’s strategic planning process. A SWOT analysis defines the internal and external environmental issues with which a firm must address in its strategic planning process. This type of analysis specifies the internal and external factors that are favourable and or unfavourable to the firm achieving its business objectives. It guides the firm in matching its resources and other capabilities to the challenges of the competitive environment in which it operates. Internal factors can be classified as personnel, finance and manufacturing capabilities. Examples of external factors can include inter alia, macroeconomic matters, technological change, legislation, sociocultural and competition. Strength • Solid financial position. • Effective Marketing Strategy. •...
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...Case 1: Coach Inc. in 2012: Its Strategy in the “Accessible” Luxury Goods Market -Rohan Shetty 1. Competitive Strategies Coach uses a broad differentiation strategy while competing in the handbag and leather accessories industry. Coach differentiates itself from its competitors by marketing itself as an “accessible luxury brand. It offers its buyers a tiered pricing structure with differentiated products. This makes the Coach’s products less price sensitive and also keeps the buyers loyal to their product. Coach also features a diverse line of products, with majority of its revenues coming from the men’s and women’s handbags. Coach also focuses a lot of emphasis on its design, distribution and after sales customer service, and keeps a personal relationship with its customers through the use of E-Commerce. Coach has a one of the most recognized brand in the accessories industry and has maintained its image by providing its customers high end quality accessories. Coach has also been innovating in its design constantly to keep up with the current trends in the fashion industry. Coach also uses feedback from its customers through surveys, which are conducted extensively and impartially to stay ahead of its competitors and providing its customers what they need. Coach also has always kept with the evolving accessories market while keeping its original style. This also has kept is a leader in the retailer industry. Coach has successfully built in differentiating features in...
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...Sasithorn Wongsirorat D560066 Coach Inc. : Is its Advantage in Luxury Handbags Sustainable ? An overview of luxury goods industry The luxury good indutry was expected to grow by 7% during 2006 due to an increasing income and wealth in developing countries especially in Asia and Eastern Europe as well as a change in buying habits of US consumers ; there is a growing group of US middle-income consumers in these luxury goods market which influenced by an effective advertising through television and internet. Another factor is an increasing in discount stores like Target and Walmart that enables the shoppers to save money on everyday items and spend the leftover savings on luxury goods. Hence, Luxury goods manufacturers responds to this trend by launching diffusion lines which offer affordable or accessible luxury to these new emerging consumer groups. Porter’s Five Forces Analysis * Rivalry among competitors : strong – The luxury goods world market are highly competitive. There are many brand name products that have good reputations and strong brand royalty customers. These brands also launch diffusion line products that correspond to an emerging of the middle-income customers. * Bargaining power of customers : moderate – Because of consumers in luxury goods industry is not very price sensitive, their bargaining power should be low because of the brand loyalty. However, there are also many other brands that the consumer can switch to within the same price range...
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...Case analysis Texas Air, Inc. I. Main Problem * Pricing Strategy Sub problem: * Late departures * Poor service and safety II. Objectives * To defend its price leadership over its competitors in the airline industry. * To amend its pricing strategy to avoid massive losses. * To shun being the lowest rank out of fourteen major airline in its evaluation on time arrival. * To improve service and safety of the Texas Air Inc. III. SWOT analysis Strengths * Price leadership * Largest airline system * High number of established, high frequency discount rates Weaknesses * Poor service and safety * Ultra low-fares Opportunities * Growth and expansion * partnership Threats * Competition * Passengers complaints IV. Alternative Course s of Actions (ACAs) ACA1. Texas Air Inc. will now be increasing its price by 30%. Expect high quality service would be given to its consumers. ACA2. Set aside pricing philosophy Peanut and MaxSaver fares. V. Recommendation We decided to adapt ACA1 because this can be better strategic move for the Texas Air Inc. In this strategy, they can avoid passenger’s complaints such as late departures, canceled flights and dirty planes. We believe that they can give their passengers a high quality services. VI. Marketing Strategy Executive Summary: Early in 1987, Texas Air bought Eastern Airlines and the financially troubled People Express. Texas merged Continental, New York...
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...Coach Inc., Marketing Strategy Carol Berry BUS 330 Principles of Marketing Instructor: Benjanette Matthews April 16, 2012 Coach Inc., Marketing Strategy Marketing is extremely important to a company’s profitability. This is why management must incorporate the basic marketing strategies and apply them in all aspects of their business practices. According to our text, marketing is “The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.” (Principles of Marketing for Ashford University, 14th Edition. Pearson Learning Solutions p. 5). I will look at the Coach Inc., because it is one of the most recognizable companies in the world and it just so happens to be one of my very favorite brands. Coach is able to target its market consumers and then satisfying their needs. In this essay I will focus on Coach’s basic marketing strategies that they have put into place and what it means to their customers. Coach was established as a family run workshop in 1941 in a small Manhattan loft. Miles Cahn joined the company in 1946 and by 1950 Cahn was running the entire business himself for the family. Coach is known for its sturdy cowhide luxury purses. This will and is the company’s signature trademark. “Handbags were 64% and Women’s accessories made up 20% of their sales in 2005.” (Coach, 2012) “Marketing is all about creating value for the customer. The five core customer and marketplace...
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...recently developed.Team A is planning to try and sale the shoe to a well-established and profitable buyer known as Nike Inc. Offered below is a brief summation about Nike Inc. detailing the history and success of the company. Adescription of the product Team Ahas invented is discussed. This paper will give a brief synopsis on the importance of marketing to Nike, as the organization’s awe-inspiring reputation thus far proves it to be a highly-regarded and profitable company to do business with. Included also is the approach to marketing research, which is used to improve the tactics and strategy within marketing for products in development. Team A performed a (SWOTT) analysis which identifiesstrengths, weaknesses, opportunities, threats, and trends that will affect the launch of our product. Organizational Overview Nike is known as one of the world’smost influential producers of athletic apparel, footwear, accessories, and equipment.The Nike symbol can be seen on the uniforms and shoes of some of the most popular athletes world-wide. The Nike Inc. mission statement claims “to bring inspiration and innovation to every athlete in the world, if you have a body, you are an athlete” (About Nike Inc., 2013, para. 1).In1950 two men Bill Bowerman and Phil Knight had a vision to ignite a revolution in athletic footwear (2013). Bill Bowerman was a well-known national coach in field and track at the University of Oregon, who searched continuously for ways to stretch the team’s competitive edge...
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