Coach - SWOT Analysis Coach

Coach - SWOT Analysis

Coach

Strengths

Coach's greatest strength is undeniably its name, which is associated with premiere luxury. Unlike other fashion companies, which must promote their handbags or other accessories based upon their designs alone, Coach can sell its merchandise purely based upon its name and cache. Coach bags are both trendy yet classical.

Weaknesses

Coach's greatest strength is also its weakness. Although the market for luxury items has rebounded since 2008, there is a certain degree of reluctance, even amongst high-end consumers, to advertise their wealth. Wearing a Coach bag on the shoulder or wearing a pair of Coach shoes is clearly an economic as well as a fashion statement.

Opportunities

The new emphasis on classic style and simplicity, versus disposable and showy goods, bodes well for Coach. Also, as men become more comfortable with being obviously fashion-conscious, Coach's wallets and other items in its male line will grow in popularity. Coach's new youthful 'Poppy' line embraces the increasingly fashion-conscious and brand-conscious teen segment. Coach could 'amp up' its product placement by courting a celebrity spokes-teen, or paying for product placement of the brand in a popular teen sitcom or teen film.

Threats

The growing movement towards 'green' or environmentally-conscious products may shift consumers away from purchasing leather, including the younger consumers Coach is attempting to court with its Poppy line.

Using the information

Coach must diversify and engage in a risk management strategy to broaden its consumer base, without diluting its brand name or image. As well as producing its core luxury product line, it should also expand its Poppy offerings with the aim of creating a more fashion-forward, budget-conscious line of products for younger consumers, preferably a line that does not use leather but still has the hallmarks of Coach designing. Courting consumers as teens can make then loyal Coach wearers for life.

Globally and local strategy

In areas of the world where environmental consciousness is less of an image concern, and the appetite for luxury is growing -- as in the case of the emerging middle class in China and Russia -- Coach can rely upon its core brand image. Elsewhere, as in the U.S., Coach can reconfigure its name to become more fashion-forward and teen friendly. Locally, it must expand its price and product range

Comparison to a competitor: Prada

In contrast to Coach, Prada boasts a far wider product range, with a less classic appeal. Prada embraces a dizzying array of fabrics, including nylon handbags, and has a more expansive outreach in its marketing of sunglasses, clothing, and other items. Prada has less snob appeal, given that not all of its items are priced with an eye upon the high-end market, and a consumer wishing to buy the Prada name who is on a budget can opt for a small wristlet or handbag under a hundred dollars.