The paper "Essentials of Strategic Management" is a great example of a Management Case Study. Coach Inc came up with a strategy that as among the best in North America. The company gained increased sales of approximately 20 percent every year between 2000 and 2011. The sales volume of the company increased to $880 million from $16.7 million in that period. The strategy of the company aims at matching luxury rivals with styling and quality and at the same time beating competitors on the pricing. The other factor of the company that was unique among the competitors is the fact that the company runs a multi-channel model in distribution.
The strategy that Coach Inc implemented dealt on the following; Building a market share for the company in North America by increasing its retail stores by 15 and the factory outlets by 25. The other strategy was to increase its share in the Japanese market by adding 15 locations. The locations were aimed at increasing the access of the customers to the company products. The other focus of the strategy was the increase in awareness of the company’ s brand and to increase the company’ s market share.
The other focus of the strategy was to increase the sales volume of its products that were meant for men. There were some stores that were specifically opened so that they can deal with men's attire. Strategic situation In strategic thinking, the manager of Coach Inc must come up with an understanding that is clear on the reasons that will make the business of coach Inc to be viable in the market place. Strategic situation analysis deals with the available tactics that have been laid in place by a company in an attempt to avoid any obstacles that may be in place.
The strategy should majorly deal with the ways in which a company will increase its profit levels by increasing sales and at the same decreasing its cost of expenses. That will majorly deal with the efficiency levels of a company. The strategy can also apply to the location of the company stores. In the case of coach’ s Inc, most of the sales are direct to the consumer.
That means that most of the retail stores have to be strategically located at a place near the customers. That will ensure that there is convenience on the part of consumers when they want to make their purchases. That will also increase the sales volume. Since most of the customers for coach Inc are from direct sales, the marketing/ advertising strategy that the company should use will also be determined by the target market. The company should, therefore, air adverts that are aimed at the local consumers informing them of the availability of the products and the usage of the available products. From the year 2012, Coach Inc came up with a strategy that was intended at expanding its market share.
The company intended to do that by evolving its operations into a company that is globally oriented. The company aimed at expanding its territory into Japan, Hong Kong, mainland China and more stores in the US. The company also aimed at increasing sales that arise from the men’ s market. That was a strategy that was aimed at increasing the sales volume of the company and the long-run survival of the company.
The company had plans of venturing into the European luxury markets. The advantage of venturing in the market is the fact that a large population of the residents usually spend on luxury items.
Gamble, J., Arthur T., & Margaret P. (2014). Essentials of Strategic Management: The Quest for
Competitive Advantage. New York: McGraw-Hill Ryerson