The Strategic Management Process, Research Paper Example

Mission Statement: Coach seeks to be the leading brand of quality lifestyleaccessories offering classic, modern American styling(Coach, Inc.).

External Analysis

Opportunities: Coach initially developed its reputation in leather goods. As the company developed reputation for quality products, it leveraged its brand reputation to enter other markets such as clothing and fine jewelry. The company has several licensing agreements which help increase its revenues and profitability(Coach, Inc.).

Globalization has created several new markets for companies like Coach because consumers in emerging economies such as China and Malaysia etc. are enjoying higher income and increasing their demand for branded lifestyle products. Not surprisingly, Coach has already been taking steps to increase its presence in many Asian economies including China, Taiwan, Singapore, Malaysia, and South Korea (Coach, Inc.).

Threats: Like many reputed brands, one of the major threats facing the company is counterfeit products. The company has devoted a special page on its website to educating consumers about counterfeit products as well as issuing warning to potential violators. The company works with law enforcements agencies and customs officials in the countries in which it operates, to prevent the sale of counterfeit Coach products as well as prosecute violators (Coach, Inc.).

Internal Analysis

Strengths: One of the company’s greatest strengths is its brand name which has allowed it to enter into several licensing deals. High brand recognition also allows the company to charge premium prices and earn attractive profit margins. Another company strength is its vast global retail network. The company has over 500 Coach stores in the U.S. and Canada and over 300 stores in other markets. Additional distribution channels include over 20 company-maintained websites as well as boutiques in selected departmental stores and specialty retailer locations (Coach, Inc.).

Weaknesses: One of the company’s weaknesses is highly cyclical nature of its business. Since Coach is a luxury brand, its sales performance is particularly vulnerable in difficult economic climate when consumers scale down their spending on high-priced products. Another weakness is the absence of extended brands which could be targeted at consumers who are more price sensitive like Giorgio Armani has Armani Exchange and Versace has Versace Jeans.

Formulate Strategies

Coach’s objective is to offer high quality products to its consumers and maintain the prestige of the brand. The company also wants to improve its revenues which is why it continues to explore new avenues of growth such as entering new international markets, establishing licensing partnerships, and entering new product markets.

Implement Strategies

The company has been aggressive in protecting its trademark assets in order to preserve the prestige of the brand. It works closely with law enforcement agencies and customs officials and aggressively pursues the violators. A recent example is the company’s win against NY-based mother and daughter business in which the judge awarded $44 million to the company. The company even got two websites shut down which were owned by the defendants(Donnelly, 2012).

As far as revenue maximization strategies are concerned, the company has several licensing agreements for products including eyewear and shoes and it also operates several stores in international markets including Japan, China, and South Korea.

Evaluate Results

Coach has been succeeding at its strategic initiatives. It has scored several victories in fight against counterfeit products including recent win against NY-based mother and daughter business. In addition, the company’s revenues increased from approx. $3.61 billion in 2010 to approx. $4.76 billion in 2012 while its net income increased from approx. $735 million to approx. $1.04 billion during the same period (Yahoo! Finance).

References

Coach, Inc. (n.d.). Broad Reach. Retrieved October 19, 2012, from http://www.coach.com/online/handbags/genWCM-10551-10051-en-/Coach_US/CompanyInformation/InvestorRelations/CompanyProfile

Coach, Inc. (n.d.). Counterfeit Education. Retrieved October 19, 2012, from http://www.coach.com/online/handbags/genWCM-10551-10051-en-/Coach_US/CustomerService/ReportingCounterfeits/-

Coach, Inc. (n.d.). Crafting the Future. Retrieved October 19, 2012, from http://www.coach.com/online/handbags/genWCM-10551-10051-en-/Coach_US/CompanyInformation/InvestorRelations/CompanyProfile-

Coach, Inc. (n.d.). Defining Classic American Style. Retrieved October 19, 2012, from http://www.coach.com/online/handbags/genWCM-10551-10051-en-/Coach_US/CompanyInformation/InvestorRelations/CompanyProfile-

Coach, Inc. (n.d.). Mission Statement. Retrieved October 19, 2012, from http://www.coach.com/online/handbags/genWCM-10551-10051-en-/Coach_US/CompanyInformation/InvestorRelations/MissionStatement

Donnelly, E. (2012, July 23). Coach Wins $44 Million Judgment Against Mother-and-Daughter Counterfeiters. Retrieved October 19, 2012, from http://fashionetc.com/news/fashion/6439-coach-wins-44-million-judgment-against-mother-and-daughter-counterfeiters-linda-allen

Yahoo! Finance. (n.d.). Coach, Inc. (COH) -NYSE. Retrieved October 19, 2012, from http://finance.yahoo.com/q/is?s=COH&annual