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Coach Study Case Analysis

In: Business and Management

Submitted By aoneill
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Coach, Inc.:
Is its Advantage in Luxury Handbags Sustainable?

Prepared by:
Date: June 10, 2014 SWOT Analysis

Strength Weakness
Brand Image Change in fashion trends
Quality made products Diverse product line
Pricing at 50% or more less than competitors Men’s accessories: 2% of sales
Strong distribution capability Outerwear: 2% of sales
Monthly product launches Business cases/luggage: 1% of sales
Licensing agreements with other companies to make Coach-branded items Royalties: 1%; 2%; 1% of sales
Diverse product line
Regular customer service training programs
Special Request service
Customer loyalty
International locations Opportunities Threats
Increase online sales Counterfeiting
Global expansion plan Consumers: knowingly buying counterfeits Consumers: NOT knowingly buying counterfeits Competition Economic recessions

After examining the SWOT Analysis, it is obvious that Coach’s strengths far outweigh their weaknesses. Miles Cahn founded Coach in 1941. Cahn was a leather artisan who began producing ladies’ handbags with the aid of his family in their SoHo loft in New York City. For a family owned company to remain in business for 44 years, it is evident that Chan created a quality product that endured the test of time. When Cahn sold Coach to Sara Lee, she took the company to the next level of greatness. Granted, her first triumph took place over a decade later when she promoted Lew Frankfort to the head of the handbag division. Regardless, Cahn would be proud of Lee’s success with the company he created. Cahn is credited for the first three strengths listed: 1) Brand image, 2) Quality made products, and 3) Setting prices about 50% lower than those of more luxurious brands. When Lee acquired Coach, she maintained Cahn’s strategy and approach to operations. After Frankfort took over the handbag division,

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