Industry Analysis on Coach Assignment Example | Topics and Well Written Essays - 1250 words

Industry Analysis on Coach - Assignment Example It is now recognized as a leading luxury goods producer in America with the brand image affordable luxury. The company’s current product line consists of Coach Handbags, Accessories, Wearables, Footwear, Jewelry, Sunwear, Travel Bags, Watches and Fragrance (Coach). Market Size Currently Coach Inc. is recognized as a large, profitable and growing American manufacturer of accessories and gifts for men and women. It owns approximately a 30% market share of the accessories and gifts manufacturing industry in the world. Coach Inc. has a significant influence on the accessories and gifts manufacturing industry in America. Net income and gross profit of the company amounted 353 million and 1.09 billion dollars respectively as at the end quarter of 2012 (Wikiinvest). Moreover, Coach Inc. employed approximately 18,000 people on a full and part time basis as of June 30, 2012 (Coach). Market Growth Rate Coach sales marked a sharp drop during January 2013. The company’s sales dropp ed by 2% in markets located in North America. North America is considered the largest market location of Coach Inc. It is listed as one of the largest companies in the S&P 500 stock market index. In January 2013, Coach Inc. was the largest declining company in the S&P 500 list. The company also failed to achieve the sales targets set for the same month (Cheng). Nevertheless, the company management is optimistic about the future sales because the yearly performance in 2012 recorded positive growth. During 2012, the price of the company shares rose by 20.9%; net sales increased by 14.5% to $4.76 billion, direct-to-consumer sales rose by 16.1% to $4.23 billion, comparable sales in Coach’s North American stores increased by 6.6%. Moreover, Coach opened 9 new retail stores and 26 new factory stores and brought the total number of retail and factory stores to 354 and 169, respectively, in North America. Another 10 factory stores were also expanded. Coach China opened 30 stores in n ew locations, bringing the total number of locations to 96. Coach Japan opened 11 new locations, bringing the total number of locations to 180 towards the end of 2012. Thus at this stage, it is impossible to determine whether the Coach Inc. market is declining or growing (Cheng). Score of Competitive Rivalry The company’s products are sold in over 20 countries in the world including North America, Japan, Hong Kong, Macau, China, Taiwan, and Singapore. Coach products are directly sold to the customers via company-operated stores in these countries. Direct-to-consumer is the prominent marketing strategy of Coach Inc. The company is also engaged in indirect marketing, i.e., sales to wholesale customers, distributors, licensed firms and web based marketing. For Coach Inc., the world is the market. Thus, the opportunity for obtaining the benefits of economies of scale is a major advantage for Coach Inc. However, it also faces issues relating to trading across borders such as loss in fair value, earnings or cash flows arising from adverse changes in interest rates or foreign currency exchange rates. The company’s policy focuses on reinvesting the profits earned abroad in the same country. Furthermore, Coach Inc.’ Annual Report 2012 reveals that the company uses the following distinguished marketing strategies to remain its annual sales revenues: (1) Distinctive Brand: Coach offers distinctive, easily

The Business Environment of Tesco Plc Case Study

The Business Environment of Tesco Plc - Case Study Example In its website, Tesco Plc clearly identifies its mission by the statement "Our core purpose is to create value for customers to earn their lifetime loyalty" (Tesco Plc 2008) This statement is in recognition that the success of the giant retailer is highly dependent on two key identified stakeholders-"the people who shop with us and the people who work with us" (Tesco Plc 2008). Thus, the company also expresses its two core values which are focused on the satisfaction of these two groups of stakeholders. For customers, Tesco maintains that in their stores "No-one tries harder for customers," (Tesco Plc 2008) while for its employees, it stresses that it would "Treat people as we like to be treated" (Tesco Plc 2008). This analysis will focus on three stakeholders of Tesco Plc, two of which are already identified above as its customers and employees. It should be noted that the success of the business organization is dependent on the customers' decision to purchase in the retail store. This in part is attainable only through the direct cooperation and effort of its employees to pursue its overall strategy of providing good products, excellent service, creation of a convenient shopping atmosphere and making shopping as enjoyable as possible. The mission of Tesco to retain loyal people both its customers and employees is created in recognition to this fact. Since the mission statement revolves around customers and employees, the company's values are also geared towards the satisfaction of these stakeholders. Tesco further expounds on how it satisfies its customers by identifying the direct ways on how to boost customer value: "Customers have told us what they want-clear aisles, to be able to get what they want at a good price, no queues and great staff. We call this our Every Little Helps Shopping Trip for customers and use it every day to ensure we are always working hard to make Tesco a better place to shop, at home and abroad" (Tesco Plc 2008). The identification of customers as key stakeholders of Tesco becomes a primary importance when it formulated its values. For its employees, Tesco Plc is committed in making the company a "great place to work" by listening to what its workforce wants: "Our staff have told us what is important to them - to be treated with respect, having a manager who helps them, having an interesting job and an opportunity to get on. Helping achieve what is important to our staff will help us to deliver an Every Little Helps Shopping Trip for our customers" (Tesco Plc 2008). Recognizing that Tesco's customers can be satisfied by its staff, the retailer also focuses on the satisfaction of its people to look after and deliver value to its customers. The four pronged objectives of Tesco Plc together with the identified mission and values altogether work for the maximization of the wealth of its other key stakeholders-its shareholders. Every business organization pursues the same goal and that is to be able to generate a sizable profit for its