According to Coach's Website, the Company Has Built a Distinctive

question 39

Multiple Choice

According to Coach's website, the company has built a distinctive style and prestigious image over the past 40 years to develop a reputation as "America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves and fine jewelry." Coach employs a multi-channel distribution channel to reach its customers, including company-owned stores and boutiques in the stores of prominent specialty retailers both within the United States and abroad, and the company operates an online store. Consumers who purchase coach products are generally willing to pay the premium price due to the superior quality of Coach's products as well as the perceived prestige of owning a Coach product. Coach stresses these features in its advertising campaigns and regularly allows movies and television shows to favorably feature Coach products in appropriate scenes. Over the last five years. Coach has partnered with automobile manufacturers such as Lexus to produce automobiles with Coach interiors. In an effort to expand its international reach, Coach intends to increase its international distribution and is expanding into Japan through Coach Japan, Inc., a joint venture with a local company that will allow Coach to control international distribution and to maintain a consistent brand strategy domestically and abroad.
-Which of the following bases of Coach's competitive advantage is likely to be the easiest to duplicate?

• A) product features
• B) consumer marketing
• C) location
• D) reputation

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Definitions:

Reservation

The act of reserving something in advance, such as a service or accommodation, or a specific area of land set aside or preserved for a particular purpose, often referring to lands designated for indigenous peoples.

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Forecast

A prediction or estimate of a future event or trend based on historical data and analysis.

Newsvendor Model

A mathematical model used to determine optimal inventory levels for products that have uncertain demand and a limited selling period.