Appendix B Internal Analysis

Appendix A-External Analysis

Political/Legal: A company’s brand image may be the single most important thing when it comes to the company. Each and everyday a lot of money is spent on making sure that image isn’t tarnished, infringed on by illegal activities. Every year it is estimated that there is 300 billion dollars in sales of counterfeit goods. Also as markets continue to grow, relationships can change effecting for example tariffs.

Economic: As seen recently, recessions can come along effecting markets for coming months or years. The emerging markets in China, India and Brazil, may boost sales for whoever gains those market shares. While the United States continues to experience a growing market its important to pay attention to the

Physically they have over 350 stores including 169 factory stores in the United States alone. Around the world they have hundreds of stores as well. On top of the stores coach also promotes is online website globally. Financially they are also very successfully with annual sales in 2012 reaching over 4 billion dollars (appendix C). The Coach trademark is also very prominent and recognizable.

Intangible Resources: It’s also important to look at the intangibles that come with Coach. The companies management style has allowed for continues growth and innovation that brings success. The brand name/ Reputation may be the single most important factor. When someone thinks of luxury, Coach often comes to mind for their continued quality, new products, and fair price. With that Coach allowed for luxury to be in the middle class.

Capabilities:

Brand Reputation of coach is an extremely important feature to the business. Though it has taken many years and millions of dollars in development, the coach “C” and other logos within Coach are very recognizable to consumers. When you see or hear of Coach you know it’s a quality “luxury” product that is made affordable for the middle class. The brand image also leaves costumers with a feeling of success because of the companies

First off Coach’s brand reputation are very valuable. It’s valuable because this is what keeps consumers coming back and what draws a new consumer. Brand reputation is what makes coach money in return making it very valuable.

Rare: It is important to look at Coach’s capabilities and see if they are rare? The answer to that question is yes, compared to rivals Coach’s capabilities are rare. Coach’s brand reputation of great quality with unbeatable prices in the luxury market is very rare. To top it off consumers have many Coach products to choose from with a lot of ways to purchase.

Inimitable: Why not just copy the successful companies? For Coach its just not that easy. Coach’s brand reputation is very hard to imitate, they have spent a long time growing and sustaining their brand for one to be able to copy it.

Non-Substitutable: Lastly Coach’s brand capabilities are mostly non-substitutable when it comes to competition. The fact that Coach has such a strong reputation, great product differentiation and distribution make for consumers to have no reason to buy another brand. Financially and geographically Coach makes it easy on consumers to have access to its products.

Appendix C- Financial Analysis

Gross profit margin – 73% - This is considerably