Case Study : Coach, Inc. Essay

1565 Words Apr 19th, 2016 7 Pages
LASA 2—Company Analysis Report
Strategic Overview:
Coach, Inc. (COH) started out in 1941 as a family-owned business manufacturing handbags in a Manhattan workshop. In 1985, Coach was bought out by Sara Lee. In 2000, 19.5% of Coach’s outstanding shares were sold to investors and the company was listed on the New York Stock Exchange. In 2001, Sara Lee then sold the remaining Coach shares to existing shareholders via an exchange offer. Sara Lee has since split into two companies, one of which now forms part of Hillshire Brands (HSH). (Analysis of Coach Inc)
Business Level Strategy
Coach uses product differentiation as their business level strategy positioning itself as an ``accessible luxury brand``. Its defense against new entrants is that they have proven their products sustainability; they also limit buyers’ power through the tiered pricing structure for its products. Having a well differentiated product line increases customer loyalty (Analysis of Coach Inc)
Corporate Level Strategy
At the corporate level Coach employs a related-constrained diversification strategy. Sixty five percent (65%) of its net sales attributed to men`s and women`s handbags. Coach tend to focus on the design, distribution, after-sale services and management, although they do outsources manufacturing. (Analysis of Coach Inc)

International Strategy
By employing a transnational strategy Coach is flexible enough to cater to local requirements. Coach uses exporting, licensing, strategic alliances, and…

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