Essentials of Strategic Management: The Quest for Competitive Advantage

Coach Inc. has enjoyed a tremendous market share since its establishment back in 1940. The products of the company has continued to attract many customers both in local market and globally through manufacturing and selling of luxurious handbags and leather accessories.

It has managed to penetrate not only the local market but also the external markets in Asia. The main reason as to why the company has managed to compete well with other companies are its unique strategies that include; good customer service provision and relation, high quality products, very attractive stores, and favorable prices.

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Strategic issues

Coach inc with unique design in the industry. This has made it attract a big number of customers, both middle and higher income earners. The company has been introducing new designs of handbags every other month since the year 2007. It creates a competitive strength against its rivals by being innovative in styling and quality leather. It has also been opening new retail stores in USA and Japan thus maintaining its growth trend in the industry.

Coach Inc is among the best manufacturers and sellers of handbags brand both in U.S and Japan due to the higher demand of luxurious accessories in these two countries. This made the company to establish various market outlets in the two countries to meet this demand. The company applied various strategies such as availing of variety of luxurious manufactured products in the company’s full-price stores, retail department stores, and factory stores.

The producers of watches, shoes, and eyewear have associated themselves with coach inc to maintain production of high quality and luxurious accessories of their products under coach brand. This made the company to apply differentiation strategy to ensure those consumers who had already built loyalty of particular brand of the company but aspire to try other brands is segmented. The company strategized on cost leadership to ensure that loyal consumers retained their share in the company (Gamble, 2007).

The stores are well equipped and located in strategic points to capture large number of buyers. The attractive stores in Coach Inc remain a good strategy to draw more buyers; their stores are neat and clean and customers feel comfortable while buying. The main objective is to ensure superior returns on investment by covering the expenses cost and raising the profit margin.

Another strategy of opening new stores in North American and opening of new markets in Canada has widened the market for company’s products. The company has already established online marketing channels. It aspires to empower online marketing and attract more customers through use of email and catalogs.

The company also aspires to create brand knowledge in the new markets to build the foundation for substantial sales in the future by opening about 30 net fresh locations, through intermediaries in China, Southeast Asia, and Middle East.

Segmentation strategy has been applied by the company through separation of two categories of consumers through applying cost leadership and differentiation strategy by the fact that company offer unique products and also favorable prices. In addition to this production of new products design also signifies utilization of differentiation and cost leadership strategies.

The existing and upcoming industries should in future focus on customer retaining strategy to ensure that the industry maintain its positive trend. Customer satisfaction plays a major role in business maintenance. Quality of the products must be well looked at for the purpose of increasing the sales volume. This has been put into practice by Coach Inc and it has made it to outshine its rivals in the industry.


Gamble, E. J. (2007). Coach Inc: is its advantage in luxury handbags sustainable? Alabama: South Alabama University.


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