Business: Luxury Good and Competitive Advantage Essay

1546 Words Oct 8th, 2014 7 Pages
Maloree Johnson
Business Strategy
September 22, 2014
Coach Case Study
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?
A business strategy refers to the means by which it sets out to achieve its desired objectives and goals. Coach’s competitive strategy deals exclusively with management’s game plan for competing successfully and securing a competitive advantage over rivals Michael Kors, Salvatore Ferragamo, Prada, Giorgio Armani, Dolce & Gabbana, and Versace. The different types of strategies used by these
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When it comes to anticipating fashion trends, Coach has proven to be successful. Each year Coach interviews its customers through Internet questionnaires, phone surveys, and face-to-face encounters with shoppers at its stores. Such intense market research has helped Coach executives spot trends well before its competitors. This in turn has helped it to extend the brand far beyond the leather bags that long were its trademark and into watches, accessories, cosmetic cases, key fobs, belts, electronic accessories, gloves, hats, scarves, business cases, luggage, eyewear, fragrance, and clothing. According to the case study and further research, sales have grown an average of 29% over each of the past three years, fueling a strong 63% averaged return on invested capital during the same period. Currently Coach is a leading American marketer of fine accessories and gifts for women and men. Its sustainable competitive advantage is a result of employee engagement, supply chain capabilities, environmental conservation, and community. Coach seeks to hire and train the best employees in a supportive and engaging environment. Coach collaborates with their raw material suppliers and manufacturing partners. Coach continues to improve the way it makes it products in order to protect the resources of the environment. Coach also supports the local communities in which they operate. Results show that Coach has

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