Coach Swot Analysis

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Coach has many internal and external factors to consider when coming up with a SWOT analysis. The first strength of Coach that I will elaborate on is their great multi-channel retail network. A multi-channel retailer is a company that sells directly to the public via more than one distribution channel. Coach reaches its consumer through a number of different channels. The easiest to reach of all channels will have to be their store fronts, where the consumer can walk into their stores take a look at the actual product and decide if they would like to purchase the product. Also included in their store front channel would be their wholesale accounts. Their second channel is their mail ordered catalog which usually ships out within a week or two of asking for it. These catalogs will show you Coach’s newest line of products where the consumer can look at the pictures of the line and select what item they would like to purchase. In the back of the catalogue you will find all the names of the styles and the prices that you would have to pay to purchase the product. A toll free number is also added on the back so you can call Coach and place an order over the phone so you don’t even have to drive to a store to get the bag you want. The third channel Coach offers to their consumers is their online website. Here customers can surf the web to view pictures of the Coach Collections. Using the web is a very smart idea because Coach has the opportunity to offer everything that they make to their customers with the click of a button. Customers can browse the Coach website for women’s handbags, accessories, shoes, business and travel bags, and even their product line for men.

Coach’s next strength is their extremely strong brand image. Women looking for a new handbag will usually have Coach on the top of their list. Coach is known globally as one of the most luxurious handbags in the market, known for their quality, vibrant colors, and innovative styles. Along with their strong brand image comes their marketing initiatives through advertising, postal mailers, and printed catalogs which implements the pull strategy and makes it easier for Coach to sell their product.

Coach’s next strength would have to be their strong financial performance. For the last eight years Coach has reported an increase in net income, which is very hard to believe considering the hard economic times that have fallen over us the last year. It just goes to show that even in hard times women will still buy there expensive luxury bags, which brings me to my final strength.

Coach’s most important strength is their strong loyal customer fan base. As I said above, when all signs point to a recession and yet your company is still bringing in a profit the only thing that can account for this is the fact that your loyal customers are still going out buying the Coach product. Coach’s loyal customers are going to be the ones that push the company through these tough economic times.

Weakness is not something that any company would like to have, but all companies have them. Best thing to do is to locate those weaknesses and come up with solutions to get rid of them. One of Coach’s weakness factors is their high level of inventory. Coach produces more products then is actually demanded. The high rate of product releases creates a higher inventory of unsold or overstocked merchandise. Therefore a majority of their sales are made from their factory outlet stores where their product is sold at a discount. Coach said that it has been seeing slower sales at its full-price stores in the U.S., offset by the robust sales at its factory outlet discount stores. Mr. Frankfort says that the brand’s performance was supported by the fact that three quarters of its U.S. customers do not consider price a major factor.

Coach’s next weakness would have to derive from their geographic concentration. Coach’s stores are located mostly in select regions of the US and Japan....
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