Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Essay:
Coach Channel Management Analysis
Coach Inc., Distribution Channel Analysis
Company Description and Overview
Coach Inc., (NYSE:COH) is a globe leader in fine accessories and gifts market, and one of the most profitable competitors in the leather goods and luggage manufacturing globally. Coach generated $4.76B in Revenues in their latest full fiscal year and earned a Net Income of $1.04B. Coach is a highly profitable business, earning 21.77% Net Profit Margin, 30.44% Operating Margin and 33/12% Return on Assets (ROA) in addition to a Return on Average Equity (ROE) of 51.3%. An eleven year financial ratio analysis is include in Appendix A, Coach Inc., Ratio Analysis. These financial accomplishments are significant given how consolidated the fine accessories and gift markets have become in recent years with the company reporting that their own market research shows the overall industry consolidating at a negative growth rate of 9.6% from 2007 to 2012, with continued consolidation, dropping 2.4% from 2012 to 2017(Coach Investor Relations, 2012). Industry analysts are predicting that there are approximately 4,700 companies competing in this industry today and that in the U.S. alone the manufacturing and sales of leather handbags and accessories generates $1.8B in profits (IBIS Research, 2012). Coach has less than 1% market share of the global industry, yet has significant market share in the affluent (over $100K income) buyers located in North America, Asia and throughout the Middle East, which is growing rapidly as a source of revenue for the company (IBIS Research, 2012). Coach is unique in that it competes across a wide variety of product categories in the high-end of the market, taking on significant inventory risk by sourcing men's and women's handbags, accessories including business cases and backpacks, in addition to footwear, jewelry and sunwear for women and men. The company has also successfully move into fragrance and watches, two product lines generating well over 50% gross contribution margins per the company's latest financial statements (Coach Investor Relations, 2012).
Coach relies on a Direct-to-Consumer and Indirect channel strategy, which gives them greater visibility into customer demand while at the same time concentrating the company's focus on key markets (Coach Investor Relations, 2012) . The company has stores in Japan, Hong Kong, Macau, mainland China and North America and continues to enjoy success in the Middle East with this Coach catalog and Internet-based e-commerce strategies (IBIS Research, 2012). Coach operates 345 retail and 143 factory-based stories in 20 countries (Coach Investor Relations, 2012).
Market and Competitive Analysis
Coach continues to gain profitable sales and is able to attain significant sales due to the high level of customer loyalty and brand value that its products provide. The company satiates that 65% of sales are from returning, loyal customers, which is the highest repurchased rate of any retailer in their competitive arena (Coach Investor Relations, 2012). In evaluating the competitors in this market, industry analysts have commented how fragmented its structure is, and how differentiation through customer experience and breadth of products is critical for success (IBIS Research, 2012). Coach has been able to grow to a $4.9B corporation due to making their business excel on these dimensions. Competitors most prevalent include American Apparel and Tandy Brands, in addition to private-label suppliers for mass merchandisers including French conglomerate Carrefour, United Kingdom-based Tesco and Wal-Mart. These three mass merchandisers are increasingly sourcing low-end knock-offs of Coach-based designs, changing the labeling and packaging to alleviate potential copyright infringement (IBIS Research, 2012). The next effect of their competitors continually pursuing a low-end pricing strategy is a net reduction in the total revenue for the industry as was shown in the introduction of this analysis. Price wars are breaking out on low-end products that Coach sells, further accelerating the commoditized of this industry as well (Coach Investor Relations, 2012) (IBIS Research, 2012).
Based on an analysis of the industry from IBIS Research (2012) and from the financial statements from Coach, the graphic shown to the right has been created.
Figure 1: Analysis of the Leather Goods and Luggage Manufacturing Industry
(Coach Investor Relations, 2012)
(IBIS Research, 2012)
Current Distribution Structure and Strategy
Coach currently selling through a classical multitier distribution channel structure, relying on 345 retail and 143 factory-leased stores in the U.S. alone and also maintained retail locations in 20 countries (Coach Investor Relations, 2012). Coach is the dominant high-end retailer of gifts and accessories in Jana where the typical customer earns in the top ten percent of income in…[continue]
"Coach Channel Management Analysis Coach Inc Distribution" (2012, August 13) Retrieved December 6, 2016, from http://www.paperdue.com/essay/coach-channel-management-analysis-81550
"Coach Channel Management Analysis Coach Inc Distribution" 13 August 2012. Web.6 December. 2016. <http://www.paperdue.com/essay/coach-channel-management-analysis-81550>
"Coach Channel Management Analysis Coach Inc Distribution", 13 August 2012, Accessed.6 December. 2016, http://www.paperdue.com/essay/coach-channel-management-analysis-81550
Supply Chain Management Hypothesis defined Concepts of SCM and the evolution to its present day form Critical factors that affect SCM Trust Information sharing and Knowledge management Culture and Belief -- impact on SCM Global environment and Supply Chain management "Social" and "soft" parameter required for SCM Uncertainties This chapter aims to give an outline and scope of the study that will be undertaken in this work. The study lays out the issues faced by manufacturing organizations when it comes
Financial Analysis of a Coach Inc Financial Analysis Case Study: Assessing a Company's Future Financial Health Financial analysis of a Coach Inc. Leather industry is a lucrative area of investment that entails manufacturing of products from leather. Coach Inc. is one of the many companies that work along this line of business. Coach Inc. started from manufacturing small leather goods in 1941 and expanded to produce in bulk of variety of products from
Economy (Market) Analysis Industry Analysis Company Analysis Brief History of the Company Analysis of Financial Statements (Ratio analysis) Liquidity Ratios: Current ratio Operating Efficiency: Asset Turnover Operating Profitability Ratios: Net profit margin, Return on Equity, and Du Pont Risk Analysis: Business Risk and Financial Risk, Variability, and Debt/Equity Application of CAPM and Analysis 10F.Estimating the Value of the Company and Analysis EPS 10• P/E 11• Sustainable Growth Rate 11• PEG 12• Investment Decisions 13G.Additional Measures of Relative Value and Analysis 13• P/BV 14• P/CF 14H.Measures of Value Added
The applicability of Activity-Based Costing for decision making is directly linked to the influences that ABC has over process control. In this order of ideas, by better identifying the incurred costs or the overhead, managers can better monitor and control the evolution of products, prices, costs and consequently, profits. ABC identifies the costs incurred by each item in terms of resources consumed. Therefore, with the aid of ABC, organizational managements
For a product configuration system to be effective it must be able to submit orders directly into production while at the same time being able to determine what the Available-To-Promise (ATP) ship dates are (Mendelson, Parlakturk, 2008). Instead of just giving the standard four to six weeks I'd also integrate the product configuration systems to supply chain systems to ensure that accurate Available-To-Promise (ATP) dates (Gunasekaran, Ngai, 2009). I'd
66). Furthermore, social software will only increase in importance in helping organizations maintain and manage their domains of knowledge and information. When networks are enabled and flourish, their value to all users and to the organization increases as well. That increase in value is typically nonlinear, where some additions yield more than proportionate values to the organization (McCluskey and Korobow, 2009). Some of the key characteristics of social software applications
The corporation or seller could benefit by developing marketing strategies prior to consumer reviews being available online. Seller Response to Novice and Expert Consumers Before allowing consumers to post product reviews on a corporations or sellers website, the seller should consider the size of the segments of expert consumers and novice consumers. For example, the seller may benefit from selling certain products if a significant number of expert consumers exist, especially