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Coach, Inc. (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Coach, Inc.

Coach, Inc. (Coach) is engaged in designing and marketing of accessories and gift products for women and men. The company primarily operates in the US and Japan. It is headquartered in New York City, New York and employed 12,000 people; out of which 3,700 are full-time employees and 6,400 are part timers.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Leading American marketer of fine accessories and gifts
  • Multiple channel and geographical coverage
  • Efficient designing and merchandising set up

Weaknesses

  • Weak inventory turnover rate

External

Opportunities

  • Increase in online sales
  • International expansion plan
  • Leveraging marketing initiatives to target. new customers

Threats

  • Strong competition in the luxury goods industry
  • Impact of economic downturn in US
  • Dealing with counterfeit merchandise
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