Case analysis: coach inc
1. The defining characteristics of the luxury goods industry lies in the fact that it is based on the vibe of branding products with exclusive level of finesse in quality. However, the price accessibility of the products among the maximum amount of population is an integral part of this industry. All these components blend in the context of a successful business of the luxury goods.
2. The competitive weapons that rivals are using to try to outmaneuver one another in the marketplace mostly lie in the mode of pricing and offering economy levels of products. However, making the products available readily at locations that are more accessible is also a good mode of operation.
It is true that the rivalry is quickening and becoming more intense because not only the differences between the companies are becoming less but also because the market is expanding by a great pace and it is important to engulf a better part of the market share to maintain sustainability.
3. The market for luxury handbags and leather accessories are changing at a rapid pace lately. Several factors are instrumental in this context. One prime reason is that the basic income of the average population is becoming high and it is juxtaposed with effective market promotions, particularly via different media. Thus, the middle class is becoming involved in such products. Additionally, a good amount of population from East Europe and Asia are becoming affluent and thus are able to spend on luxury products. (Gamble, 105)
4. The key factors that determine the success of makers of fine women handbags and leather luxury products lies in the aspects of quality, proper formulation of target audience, price accessibility over a large range of economic classes and effective advertisements. All these factors builds up the market segment for a company involved in the business of women handbags and leather luxury products.
Gamble, John E; Case analysis about Coach Inc.: is its advantage in luxury handbags sustainable?; University of South Alabama; 2007