International Business - COACH Essay Example | Topics and Well Written Essays - 1250 words

International Business - COACH - Essay Example These include indirect and direct-to-consumer. In its global operations, these segments can be regarded as channels of distribution. Through direct-to-consumer segment facilitates Coach with instant access to consumers, thus providing it with an opportunity to understand the tastes and preferences of its wide consumer bases especially in regions such as mainland China, Japan, Hong Kong, North America and Singapore among others. This segment facilitated Coach with around 89% of the entire net sales in the year 2012. With regard to any future expansion strategy in a new market segment as well, direct-to-consumer strategy can be fruitful for Coach. In terms of its indirect segment of operations, royalties obtained from licensing of products is a major component. Moreover, wholesale channel is a critical aspect which also includes sales through online websites. One of the major prospects for Coach can arrive from emerging markets as it has already started to sell its offerings through au thorized retailers and distributors in a number of new markets. Shop-in-shops option created by the company can also facilitate the growth of the company in its global business operations. The company’s e-commerce strategy is also a major beneficial aspect in its global operations. In nations such as Japan, Canada and the US, a large number of visitors prefer to use online mode to purchase the products of Coach. Coach rules the global market for its fashionable handbags as well as attractive accessories. Coach focuses on merchandising and designing through team work and through having a close collaboration its licensed business partners to ensure quality offerings. Coach uses new technologies such as social networking sites like Facebook as well as Twitter to create awareness and to enhance its customer base. Coach also ensures its compliance with its Global Business Integrity Program which can enable it to maintain its legal and ethical responsibilities thus facilitating wit h significant opportunities in its business operations globally (EDGAR Online, Inc, 2013). B. Analyzing International Competitors Majority of organizations are changing their operating functions to global scale. This is likely to create a fiercely competitive global fashion retail industry. The competition against the operating firms in the global market can be analyzed by the intensity of the competition and by determining the growing competition between the fashion brands globally. Coach has significant number of major competitors in the luxury fashion products industry. Coach competes in global market with Gucci, Louis Vuitton, Prada and Hermes. The competition in the fashion industry is densely intense, for having very less market-entry barriers. One of the world’s reputed fashionable luxury manufacturing product companies is Louis Vuitton. As of the year 2008, Louis Vuitton had a brand value of about â‚ ¬16.718 billion. One of the most competitive advantages of Hermes International S.A. is that it provides its consumer hand-made products, which ensures their uniqueness as well as quality. Gucci, an Italian luxury product designer brand, is a leading name in the global market, consequently having revenue of around â‚ ¬4.2 billion as of 2008 (Dickinson State University, 2011). Thus, it can be ascertained