asfgas1. What are the defining characteristics of the luxury goods industry? What is the industry like?
Luxury good is a good for which demand increases more than proportionally as income rises, and is often referred to as a necessity good, for which demand increases less than proportionally as income rises. Luxury goods are said to have high income elasticity of demand: as people become wealthier, they will buy more and more of the luxury good. The luxury goods market has been on an upward climb for many years. The industry has performed well, particularly in 2000. In that year, the world luxury goods market – which includes drinks, fashion, cosmetics, fragrances, watches, jewelry, luggage, handbags? The luxury-goods business needs people to feel good about spending money.
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?
Competition in the retail industry continues to reach new heights, which in turn accelerates the change in the retail landscape. Stores battle each other on every corner and catalogues and online sites continue to change the way consumers shop.
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. Of the five generic approaches, what is Coach’s strategy to compete in the ladies handbag and leather accessories industry? Has the company’s competitive advantage 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...