Ch. 2 - Strategic Planning for Competitive Advantage

As I read through chapter 2 I came across the SWOT analysis; a theory in which a company should identify their internal strengths, weaknesses, opportunities and threats. I found this theory interesting and wondered what my companies SWOT analysis would look like - so, after investigating here it goes.

Coach USA's STRENGTHS:

1) Coach is the designer, producer and marketer of a very high standard, high quality line of handbags, wallets, luggage, briefcases and accessories. 

2) It caters to the middle-class consumer which dominates our countries population. 

3) In it's desire to keep up with current marketing strategies it has employed numerous trend-setting designers to contribute to their traditional, conservative , quality driven brand.

4) They have managed to ensure the stability of the company by reaching millions of consumers through their retail stores, online stores, factory outlets and direct mail catalogs. There are also 175 Coach locations outside of the United States - in 18 different countries.

WEAKNESSES

Coach has a very traditional look in the styles they put out. Many of Coachs' handbags have the traditional Coach look decked out in the "C" logo.Trend setting consumers are usually on the lookout for those brands and syles that aren't, well...typical or so easily accessible.  And with Coach stores in every mall, strip mall and outlet consumers may begin to feel like it's just another brand.

OPPORTUNITIES



In an effort to expand the Coach brand it entered into a licensing agreement which allowed its name to be used a line of watches developed by Movado Group. In 1998 through a licensing agreement with Motorola, Inc. a Coach leather phone case was introduced. The following year a line of premium furniture was launched through yet another licensing deal with Baker Furniture Company. Through other license agreements the Coach name was used on items such as footwear, frames and eye wear.

Threats

  

COACH Knockoffs


1) The drive and appeal of luxury, designer handbags has fuelled consumer demand for their counterfeit versions. Aside from the many sidewalk vendors illegally selling counterfeit versions of Coach items, websites like mycheapcoach.com and us-coach-bags.com have been cybersquatting, taking millions in profits from Coach USA. In 2012 Coach was awarded $257 million dollars in a counterfeiting suit with the ability to seize 573 domain names linked to knocking off the popular brand.


PRADA



2) Competition, competition, competition! Keeping an eye on the competition is key in this business - with companies like Gucci, Prada and Louis Vuitton a business is only as good as their products and keeping ahead of the competition can mean success or failure.