Title: Business, Government and Institutional Buying and Market Segmentation
(Case Study: Coach Inc.)
This case provides an excellent example of a best-cost strategy. The coupling of Coach’s differentiating features such as product quality, prestigious image, outstanding customer service, lifetime guarantee, and attractive stores with a cost-based pricing advantage has yielded a strong competitive advantage for Coach. The case also contains ample information for conducting an industry analysis and company situation analysis.
1. What are the defining characteristics of the luxury goods industry? What is the industry like?
2. What is competition like in the luxury goods industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not?
3. How is the market for luxury handbags and leather accessories changing? What are the underlying drivers of change and how might those driving forces change the industry?
4. What key factors determine the success of makers of fine ladies handbags and leather accessories?
5. What is Coach’s strategy to compete in the ladies handbag and leather accessories industry? Has the company’s competitive strategy yielded a sustainable competitive advantage? If so, has that advantage translated into superior financial and market performance?
6. What are the resource strengths and weaknesses of Coach Inc.? What competencies and capabilities does it have that its chief rivals don’t have? What new market opportunities does Coach have? What threats do you see to the company’s future well-being?
7. What recommendations would you make to Lew Frankfort to improve the company’s competitive position in the industry and its financial and market performance?
(Case Study: Panera Bread Company)
As Panera Bread Company headed into 2007, it was continuing to swiftly expand its market presence. The company’s strategic intent was to make great bread broadly available to consumers across the United States. It had opened 155 new company-owned and franchised bakery-cafes in 2006, bringing its total to 1,027 units in 36 states.
This case provides a practical vehicle to identify a company’s strategy and evaluate its pros and cons. There is plenty of information in the case to conduct a full-blown SWOT and strategy analysis. If you have the DVD that accompanies the text you can also watch the 10-minute video.
1. From a market segmentation perspective, provide an analysis of Panera Bread’s strategy. Which of the competitive strategies discussed in Chapter 1 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve?
2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies?