Coach Case Analysis Essay

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Established in 1941, Coach began as a small family run leather goods company. The company grew over time and in the 1980’s opened Coach retail stores. During 1985 Coach was sold to diversified food and consumers group Sara Lee and expanded quickly from there. By the late 1980`s they had expanded into 12 exclusive Coach retail stores including roughly 50 boutiques selling Coach products in department stores. In 1996 Reed Krakoff joined Coach, who was a key player in positioning Coach as an accessible luxury brand. In October 2000, Coach went public under the name of Coach Inc. By 2005 Coach`s revenues tripled as their share price increased more than 900 % since their IPO in 2000. Coach is in the process of deciding to move to foreign markets …show more content…

Based on analysis, the industry is relatively attractive. Most criteria for Porter’s 5 Forces are low to medium although substitutes are higher than other forces. Coach can manage the high opportunity for a substitute given the hand bag industry as of 2010 is a $28 Billion industry and is growing every year. See Appendix A for a complete analysis of the macro environment and industry environment. Internal Analysis By analyzing the internal environment of Coach we find that coach has a sustainable competitive advantage through characteristics such as solid tangible and intangible assets. Their competitive advantage can also be seen through the capabilities and dynamic capabilities they possess. Refer to Appendix B for further detail about how Coach continues to have a sustainable competitive advantage. Financials (Refer to Appendix C for additional financial information.) -Overall the financial performance of Coach slipped during the recession; however they did not struggle as much as others within the industry. The financial declines during the recession can be seen in every above ratio between 2008 and 2009, when the recession was in full

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