Case Study Coach

1210 Words5 Pages
Roger Erickson MGMT 499-52 Case 7-Coach 1. What is Coach's strategy to compete in the handbag and leather accessories industry? Has the company's competitive strategy yielded a sustainable competitive advantage? If so, has that advantage translated into superior financial and market performance? Coach's strategy to compete in the handbag and leather accessory industry is to differentiate itself from others in the industry, they want to be able to match key luxury rivals in quality and styling while beating them on the price by 50 percent or more, yielding a competitive advantage in attracting not only middle-income consumers desiring a taste of luxury, but also affluent and wealthy consumers with the means to spend considerably more on a handbag. Coach is able to differentiate itself by introducing new handbags every month with the highest quality and latest fashion trends which is done through market research. The key here is to get the consumer into the store as often as possible. All this adds up to increased store traffic, which all businesses are striving for, this is in large part due to the new style of hand bags, which turns into more sales. Instead of the typical industry members who offer high quality leather products as well, but charge a higher price, Coach looks to create “accessible luxury” in that it wants to create a high quality product at an affordable price in its factory stores while still catering to higher end consumers with its full-price stores. Coach also has a desire to make customer service a high priority, as we can clearly see when we look at their return policy for products. This is one of the reasons why Coach was able to increase their net income from $16.7 million in 2000 to $880 million as of 2011. When we look at the strategy that Coach has we see that they are able to have the factory stores and then they also have their
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