Coach Five Forces
External Environment
Five Forces Analysis – Luxury accessories
Force
Threat level (high or low)
The Threat of Substitutes
High
Substitutes include:
Counterfeiters, Not using luxury accesories
High
Power of Buyers
High
Many buyers relative to rivals?
Yes -> Low
Need the item?
No -> High
Have all the information?
Yes ->High
Lots of substitutes?
Yes ->High
Product performance is critical?
Yes ->High
Product differentiation is possible?
Yes->Low
The Threat of Entrants
High, but not as high
Capital Requirements
Yes -> Low
Product differentiation is possible?
Yes ->High
Access to distribution channels?
Yes ->High
Government regulations
Yes -> Low
Buyer switching costs?
No -> High
Profitable?
Yes ->High
Economies of scale?
Yes -> Low
Power of Suppliers
Low
Many suppliers relative to rivals?
Yes -> Low
Important component
No->Low
Suppliers switched easily?
Yes -> Low
Differentiation possible
Yes ->High
Short supply?
No->Low
Vertical integration possible:
Backward
No -> High
Forward
No->Low
Intensity of rivalry
Low
Industry growth?
Yes->Low
Differentiation possible
Yes -> Low
Buyer switching costs?
No -> High
Exit barriers?
No->Low
Conclusion (overall)
Moderate risk
Based on Porter’s Five Forces Analysis, Coach Inc. biggest hurdle will be the Threat of Substitutes. The Threat of Entrants is high, but it’s a more moderate risk than the substitutes, largely due to counterfeit products, as well as other big brand name competitors like Michael Kors and DKNY.
External Environment
Five Forces Analysis – Luxury accessories
\
Force
Threat level (high or low)
The Threat of Substitutes
High
Power of Buyers
High
The Threat of Entrants
High, but not as high
Power of Suppliers
Low
Intensity of rivalry
Low
Conclusion (overall)
Moderate risk
Based on Porter’s Five Forces Analysis, Coach Inc. biggest hurdle will be the Threat of Substitutes. The Threat of Entrants is high, but it’s a more moderate risk
Five Forces Analysis – Luxury accessories
Force
Threat level (high or low)
The Threat of Substitutes
High
Substitutes include:
Counterfeiters, Not using luxury accesories
High
Power of Buyers
High
Many buyers relative to rivals?
Yes -> Low
Need the item?
No -> High
Have all the information?
Yes ->High
Lots of substitutes?
Yes ->High
Product performance is critical?
Yes ->High
Product differentiation is possible?
Yes->Low
The Threat of Entrants
High, but not as high
Capital Requirements
Yes -> Low
Product differentiation is possible?
Yes ->High
Access to distribution channels?
Yes ->High
Government regulations
Yes -> Low
Buyer switching costs?
No -> High
Profitable?
Yes ->High
Economies of scale?
Yes -> Low
Power of Suppliers
Low
Many suppliers relative to rivals?
Yes -> Low
Important component
No->Low
Suppliers switched easily?
Yes -> Low
Differentiation possible
Yes ->High
Short supply?
No->Low
Vertical integration possible:
Backward
No -> High
Forward
No->Low
Intensity of rivalry
Low
Industry growth?
Yes->Low
Differentiation possible
Yes -> Low
Buyer switching costs?
No -> High
Exit barriers?
No->Low
Conclusion (overall)
Moderate risk
Based on Porter’s Five Forces Analysis, Coach Inc. biggest hurdle will be the Threat of Substitutes. The Threat of Entrants is high, but it’s a more moderate risk than the substitutes, largely due to counterfeit products, as well as other big brand name competitors like Michael Kors and DKNY.
External Environment
Five Forces Analysis – Luxury accessories
\
Force
Threat level (high or low)
The Threat of Substitutes
High
Power of Buyers
High
The Threat of Entrants
High, but not as high
Power of Suppliers
Low
Intensity of rivalry
Low
Conclusion (overall)
Moderate risk
Based on Porter’s Five Forces Analysis, Coach Inc. biggest hurdle will be the Threat of Substitutes. The Threat of Entrants is high, but it’s a more moderate risk