Coach, Inc. Case Study

MKTG Management 9/8/2011 discipline, Inc. Case Study decision maker Summary (Problem) The globose luxury goods industry consists of mens, womens and childrens source app bel, fine watches, jewelry, and leather goods and generated revenues of over $ one hundred five billion in 2005. U.S. companies held a 14% sh atomic number 18 of the mountain following Swiss, French and Italian companies who accounted for 19%, 22% and 27% commercialize packages respectively. The market in the U.S. has grown recently in part imput competent to the weak state of the U.S. dollar; companies are able to do good from the converting of the international currency prickle to the U.S. currency. Buying habits of U.S. consumers have similarly characterized the growth of the industry. Middle-income consumers have begun to passion products with higher levels of quality and style. baby carriage, Inc. has been able to find its ecological niche in the leather goods sector, speciali zing in cause handbags. Handbags accounted for 67% of good gross sales in 2006, which represented a 25% share of the handbag market in the U.S. Coach has performed significantly well up since its IPO in 2000, increasing network earnings from $16.7 billion to $494 million. During that same time period, share harm has increased from about $2.50 a share to $44.00 a share.

Although Coach has seen their profit margins and market share grow exponentially, there are a a few(prenominal) issues that should be addressed in state to sustain lucrativeness in the long term. 1) Reliance on U.S. Sales In 2007, 7 6% percent of Coach Inc.s sales came from th! e coupled States. Louis Vuitton, one of Coachs main competitors, has a break away distribution of their revenues geographically with only 26% approach bridle-path from the U.S. market, 37% from Europe and 30% from Asia. With most of company sales concentrated in the U.S., Coach will have to adjudicate on the domestic economy to remain stable, as a downturn could lead to American consumers becoming much to a greater extent price sensitive towards the luxury goods industry. 2) Counterfeiting Over...If you deficiency to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay