Market Opportunity Analysis: Coach Inc.

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Market Opportunity Analysis: Coach Inc.: Is its Advantage in Luxury Handbags Sustainable?

These days, the relative hot discussion never fails to fascinate people whether Coach Company’s advantage in luxury handbags is sustainable. Considering the current situation that Coach is in and the new strategy that Coach will take, we believe that Coach’s advantage in Luxury handbags will be sustainable. Coach is a large, American luxury handbags-made company. In this article, we will first tell some beautiful stories on the background of coach. For another, we will analysis the reason why its advantage is sustainable depending on 4Ps theory. In the end we feel obliged to give some recommendations based on our analysis. Here are some stories. Coach was built in 1941 when Miles Cahn, a New York City leather artisan, began producing ladies' handbags. Over the next 40 years, Coach was able to grow at a steady rate by setting prices about 50 percent lower than those of more luxurious brands. In 1996, Frankfort's move was to hire Reed Krakoff, a top Tommy Hilfiger designer, as Coach's new creative director. He believed new products should be based upon market research rather designers' instincts about what would sell. Frankfort's turnaround plan also included improved the appearance of its factory stores, discounts were made possible by the company's policy of outsourcing production, Coach created the "accessible" luxury category in ladies' handbags and leather accessories by matching key luxury rivals on quality and styling, while beating them on price by 50 percent or more. The low price make Coach become the best-selling brand of ladies' luxury handbags. As the evidences accumulate, not only do they possess the idea, but they have already put it into practice as well. But they still have challenges, inside and outside. Competitors from French and Italian Luxury goods are still very strong. Is its advantage in Luxury handbags sustainable? It’s time...
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