Please read the mini-case on Coach, INC and answer the following questions

1. Table 3-7 (Page 75) provides a list of 10 conditions that cause high rivalry among competing firms in an industry. In the women's handbag business, what in your opinion are the top five (among the fifteen) conditions contributing to Coach's demise?
2. Figure 3-3 (Page 74) reveals Porter's Five Forces Model. Rank order the five forces from 1 = most impact to 5 = least impact to reveal your opinion regarding which forces are contributing most to Coach's demise.
3. In your opinion what are the key differentiating features that you look for in handbags, and what could Coach do to re-earn your business? Rank COH, KORS, and KATE in terms of price, style, youthfulness, and quality.
   

Page 1 of 2 ZOOM + MINI-CASE ON COACH, INC. (COH) WHY ARE THE LADIES SHUNNING COACH? Headquartered in New York City, Coach, Inc. is the leader in North America of women's hand- bags, but in 2014 and 2015, the company faltered badly due to intense rivalry in the industry. Even though most U.S. stocks rose more than 30 percent in 2014, Coach's stock price declined more than 30 percent. Coach's EPS steeply declined throughout 2015 and the company's net income declined 50 percent in Q1 of 2015. Coach's products are sold worldwide through Coach stores, select depart- ment stores and specialty stores, and through Coach's website at www.coach.com. However, com- petitors such as Michael Kors (KORS), Kate Spade (KATE), and Tory Burch are eroding Coach'sPage 2 of 2 ZOOM + market share, and importantly, promotional activity across the category appears to be increasing. In response, Coach is closing dozens of underperforming stores as double-digit sales decline continue. Coach is formulating strategies to protect its market share in the United States, including hiring a new design team, revamping its marketing, remodeling stores, and rethinking its wholesale channels, but it could take an extended period of time to turn around a business so large (more than $3 billion in sales in North America). In 2015, Coach acquired Stuart Weitzman footwear brand for $530 mil- lion from private equity firm Sycamore Partners. Coach is spending $570 million through 2017 to improve stores and wholesale locations, plus $50 million to boost advertising. Coach is impacted by the value of the U.S. dollar and by economic and political conditions globally. The company markets its products to consumers through stores in North America, Japan, Mainland China, Hong Kong, Macau, Singapore, Taiwan, Malaysia, South Korea, the United Kingdom, France, Ireland, Spain, Portugal, Germany, and Italy. It also sells its products to wholesale customers and distributors in approximately 35 countries. Coach operates about 300 retail and 200 outlet stores in North America; 198 coach-operated concession shop-in-shops within department stores, retail stores, and outlet stores in Japan; and 277 coach-operated concession shops within department stores, retail stores, and outlet stores internationally. Questions 1. Table 3-7 provides a list of 15 conditions that cause high rivalry among competing firms in an industry. In the women's handbag business, what, in your opinion, are the top 5 (among the 15) conditions contributing to Coach's demise? 2. Figure 3-4 reveals Porter's Five Forces Model. Rank order the five forces from 1 = most impact to 5 = least impact to reveal your opinion regarding which forces are contributing most to Coach's demise. 3. In your opinion (ladies), what are the key differentiating features that you look for in handbags, and what could Coach do to re-earn your business? Rank COH, KORS, and KATE in terms of price, style, youthfulness, and quality. Develop a 3 x 4 matrix to reveal your positioning of these rival firms along these dimensions. 4. Does Coach like to see the value of the dollar increase or decrease versus the euro, and versus the yen? Why