Coach’s supply chain enables to provide customers a variety of comparable luxury goods respect to quality and styling at relatively cheaper price than competitors. (Accessible luxury) * Outsourcing policy of Coach (40 suppliers in 15 countries) * Coach’s negotiating power over suppliers - Coach’s large volume order and high brand perception * Coach’s many licensee companies manufacturing a variety of luxury goods (watch, shoes, fragrance, and eyewear) Rare -- No
Competitors can have access to the suppliers of Coach.
Although Coach has built strong supply chain for over 70 years history and has tacit knowledge that enables Coach to be successful company by providing accessible luxury, Coach’s supply chain is imitable for competitors because access to Coach’s supply chain isn’t limited only for Coach and competitors can become a valuable customer of Coach’s supply chain.
“Providing accessible luxury” is the main value Coach can give to customer through its supply chain. Coach’s outsourcing production policy and power at the negotiating table enable Coach to provide luxury goods which have the same level of quality and styling to customers at a cheaper price than competitors. As a result, more middle-income people desire to buy Coach’s product which is affordable to them and this trend becomes a key driver for Coach to be successful company in the industry. Nevertheless, this price advantage by supply chain isn’t rare and inimitable because some competitors already might have access to Coach’s suppliers and there’s potential possibility for other competitors to have access to Coach’s supply chain to catch up Coach’s accessible luxury concept. Thus Coach’s supply chain has a competitive parity.
| YesCoach’s supply chain enables to provide customers a variety of comparable luxury goods respect to quality and styling at relatively...
Please join StudyMode to read the full document