Coe - Case Study

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1. Why do you think Coe’s was so successful in the United States? Could they translate its strategy to Mexico and succeed? Justify why. Answer: Coe’s was successful in the United States because they are different with others competitors such as Mr Rental. The difference is Coe’s emphasized on ownership at the end of lease period. For instance, more than half of their customers become the owner at the end of their leases compare to Mr Rental only 25%. Coe’s also have another value added to their customer; they offer free delivery and repair to build long term business relationship. Besides the company’s strategy, recession also increase Coe’s target market due to people don’t want to spend more money for expensive items. In my opinion, Coe’s can adopt the same strategy if they want to open new store in Mexico. The similar strategy will attract the target market to buy their product. Ownership of the product is the main factor in their expansion mission due to there is no store in Mexico offer the same service like Coe’s. Another strategy can be applied in Mexico is to place Coe’s next to a Wal-Mart. Stan’s team, under business development also has a good data about several places at the border cities such as Matamoros and Monterrey for Coe’s business expansion. These places would be a perfect place for their venture in Mexico. To play safe with the expansion do a market study in the southern US states as well in northern Mexico. Focus on the town’s demographic such as family income, age group, cultural buying behavior and life style as well. Coe’s also must do some research on the lease-own culture prevalent in Mexico and the environment there. If the same strategy will be applied and the business model could be managed then the expansion could be succeed. 2. Why do you think COE’s failed in Puerto Rico? Will Stan experienced the same fate if he chose

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