Coach's situation in the luxury industry can be summarized and characterized in different way. Coach's stands as a popular brand in the affordable industry especially in USA and Japan as first and second highest sales. Whereas, in another markets like Europe, Coach doesn't consider popular or achieving targeted profits in comparison to other brands. One of Coach's main issues is the low profits and the high cost that it started to decline over years. Coach's low margins in addition to the low demand for the luxury goods in the market. Plus, Coach's revenue is decreasing over the years which weaken their situation in the industry and have difficulties in covering its expenses. Another strategic issue Coach is facing is the diffusion of lines in the industry to appeal the middle income customers. Some brands started launching sub brand with and affordable prices. The strategies followed by Coach has some issues that raise the following questions:
How can Coach increase their profits and revenue?
How can Coach increase the market share between different markets?
How can Coach differentiate their brand from other brands?