COACH is the US based leading leather Goods Company, which is involved in the production of handbags for women, luggage, wallets, briefcases, watches, briefcases, footwear and many products for both men and women. This fashion brand has also introduced some luxury products in the market but its market is limited to mainly Japan and America. The products are costly and most of the clients cannot afford to buy them so the margin of the sale is also very close. This fashion brand has to face strong competition of other fashion brands of Italy, France, Germany and UK, which are providing their products at comparatively better and economical rates. People like to buy reasonable products and very less number of people prefers to buy luxury products. We do their SWOT analysis for this leading fashion brand in detail:
Strengths
•Extensive brand equity
• Extensive business experience over 70 years
• Strong financial position and strict competitor of other fashion brands
• Maintains multi-channel retail network marketing
• Encouraging and impressive customer service
• Strong ability to produce luxury products like footwear, watches, outerwear, glasses, fragrances
• Frequently introduction of fresh handbag designs
• Perform well to provide leather product in good quality at the reasonable rates
• Strong ability to perform in the tight and diverse economic environment
• Strong performance against its competitors
• Maintains high quality of products and provide to customers at most economical rates
• Provides products through retail distribution on full priced store, outlets of factory, catalogs and internet
Weakness
• Having small geographic concentration and limited to US and Japanese markets
• Lack of high level of invention in their products
• Most of the products are inaccessible to large number of consumers
• Accessories for men account for 2% of sales
• Luggage is provided to clients for 1% of sales
• Products are sold on outlets of factory at the full price
• Large number of products are sold through outlets of store, which limit its sales
• Outerwear are offered to clients at mere 2% of total sales
• Having reduced margins over its products
Opportunities
• Opening its new stores and expand its market to other countries
• Expand the introduction and exposure of their products
• Look for new international markets like China, Brazil and other countries
• Enhance production of its luxury products and introduce them in new markets
• Enhance the margin of products to expand scope of sale of products
• Search for new consumers in global markets like Middle East, India, Mexico and Australia to enhance sales of products
Threats
• Faces strong competition
• Less sale of luxury products due to higher rates
• Changes fashion trends and new trends for sale of products
• Counterfeit of products
• Limited buying and spending capacity of consumer
• Strong competitors in market, which have impressive record of introduction and sales of their products
• Various brands provide products at comparatively economical rates than this brand and fetch attention of consumers