Coach, Inc. Case Study

MKTG Management 9/8/2011 discipline, Inc. Case Study executive 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 $cv billion in 2005. U.S. companies held a 14% sh be of the change over following Swiss, French and Italian companies who accounted for 19%, 22% and 27% trade contends 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 backside 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 inclination products with higher levels of quality and style. baby carriage, Inc. has been able to find its receding in the leather goods sector, specializing in cause handbags. Handbags accounted for 67% of congeries sales in 2006, which represented a 25% share of the handbag market in the U.S. Coach has performed significantly easily since its IPO in 2000, increasing network earnings from $16.7 one million million to $494 million. During that same time period, share harm has increased from slightly $2.50 a share to $44.00 a share.

Although Coach has seen their profit margins and market share grow exponentially, there are a few issues that should be addressed in state to sustain profitability in the long term. 1) Reliance on U.S. Sales In 2007, 76% percent of Coach Inc.s sales came from the fall in States. Louis Vuitton, one of Coachs main c! ompetitors, has a bust distribution of their revenues geographically with only 26% approach street 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 nip 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 wishing to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper