Group 3 Report On Case 7 Coach Inc

Topics: Luxury good, LVMH, Branding Pages: 17 (5380 words) Published: July 6, 2015
Company history2
An Overview of the global luxury goods industry3
The strategic option of Coach in recent years3
What we find out from the case4
1.Characteristics of the luxury goods industry7
2.Competition in the luxury goods industry7
3.Competitive forces that have the greatest effect on industry attractiveness8 4.Competitive weapons that rivals are using to try to outmaneuver one another in the marketplace and the pace of rivalry9 5.Changes in market for luxury handbags and leather accessories9 6.Key factors that determine the success of makers of fine ladies handbags and leather accessories11 7.Coach's strategy to compete in the ladies handbag and leather accessories industry13 8. SWOT Analysis15


Coach, Inc. is an American luxury leather goods company that got its start manufacturing small leather goods. Coach is known for ladies' handbags as well as items such as luggage, briefcases, wallets, and other accessories. The strategy of the company is considered as the main factor made it among the best-known luxury brands in North America and Asia. Specifically, this study aimed for analyzing the strategy of Coach Inc. in the “accessible” Luxury Goods Market. Company history

Coach was found in 1941 when Miles Cahn, a leather artisan, began producing ladies handbags, in a loft on Manhattan's 34th Street, New York City, as a partnership called the Gail Leather Products. The classic styling and sturdy construction proved popular with discriminating consumers, and soon developed a loyal following for leather handbags of the company. Over the next 40 years, Coach was able to grow at a steady rate by setting prices about a half lower than those of more luxurious brands.

In 1985, the acquisition of Coach left the strategy of handbags’ manufacturers and approach to operations more-or-less intact. The company continued to build a strong reputation for long-lasting, classic handbags. However, by the mid-1990s the company’s performance began to decline as consumers developed a stronger preference for stylish French and Italian designer brands.

Since 1996, Coach held a strategic revolution of creating new products based on market research by conducting extensive consumer surveys and held focus groups to ask customers about styling, comfort, and functionality preferences. The company also improved the appearance of its factory stores and special lines for discount. The outsourcing agreements allowed Coach to maintain a sizeable pricing advantage relative to other luxury handbag brands in full-price stores as well.

Attractive pricing enabled Coach to appeal to consumers who would not normally consider luxury brands, while the quality and styling of its product were sufficient to satisfy traditional luxury consumers. By 2000, the effective changes to strategy and operations allowed the brand to build a sizeable lead in the “accessible luxury” segment of the leather handbags and accessories industry.

From 2001 to 2011, Coach launched a series of activities to take great control over the brand in the Asian markets, and it also accelerated its European expansion with the help of its European joint venture partner in 2011. Continuous innovation and affordable price are two keys for Coach to conduct international business. In addition, owing to its multi-channel retail network, Coach, Inc. has successfully enhanced its brand image all over the world. An overview of the global luxury goods industry

There are many potential markets for luxury goods, which include leather products. However, it has experienced ups and downs during the 2000s. And in recent years, the industry has recovered and developed rapidly. The markets for luxury goods were divided into three main categories: haute couture, traditional luxury, and the growing submarket “accessible luxury”. Luxury...

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