Luxury Goods Industry

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Coach Inc.: Is Its Advantage in Luxury Handbags Sustainable?

1.What are the defining characteristics of the luxury goods industry? What is the industry like?

2.What is competition like in the luxury goods industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not?

3.How is the market for luxury handbags and leather accessories changing? What are the underlying drivers of change and how might those driving forces change the industry?

4.What key factors determine the success of makers of fine ladies handbags and leather accessories?

5.What is Coach’s strategy to compete in the ladies 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?

6.What are the resource strengths and weaknesses of Coach Inc.? What competencies and capabilities does it have that its chief rivals don’t have? What new market opportunities does Coach have? What threats do you see to the company’s future well being?

7.What recommendations would you make to Lew Frankfort to improve the company’s competitive position in the industry and its financial and market performance?

Red Bull

1. What created Red Bull’s success? Where is the core franchise and benefit? Has the product’s positioning changed over time? What is the role of alcohol mixing to Red Bull’s success?

2. What is Red Bull’s success formula? For which kind of product/beverage categories will this formula work? How does Red Bull know when to turn on the advertising? What metrics would you use to make this judgment?

3. Why did the first U.K. launch go awry?

4.What changes were made for the U.S. market? Should other changes...
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