Thursday, July 25, 2019

Coach case Essay Example | Topics and Well Written Essays - 500 words

Coach case - Essay Example This model focused on providing indirect sales to other third parties thus increasing the number of sales of products and thus increasing its brand awareness in the market. These two strategies enabled Coach Company to attain its two primary strategic objectives which were to increase the global distribution of its products and to also improve the store sales productivity. Therefore, through these two strategies, the company has been able to attain competitive advantage over its major rivals, however, it was not certain whether the firm could match some of its prime rivals such as Dolce and Gabbana, and Versace. Coach Company has the principal strength of adequately competing with its competitors on its highly unique and superior luxury goods. Besides the company’s products has an innovative styling that has played a huge role in attracting new customers. Comparatively, Coach Company products are available at major outlets and sold at price less than 50% or more than its chief competitors in the luxury industry. In addition, the company has delivered extra services to the customers such as customer care to cater for their queries whenever they occur. As a result, the company has experienced increased customer satisfaction and loyalty from its customers. Equally important, Coach engaged in strategic associations with other major company such as Movado thereby broadening their market segment. This concept of outsourcing has not only enabled them to cut their maintenance costs but to lower their manufacturing costs as well. This has therefore increased their competitive advantages in the luxury industry. The companies has also various internal weaknesses which should be managed appropriately. For instance, the luxury industry is characterized by rampant change in the fashion trends. This has thus led the factory outlet stores to outperform the retail price stores. Therefore, the company’s products and brand are diluted due to the

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