Coach vs. Dooney & Bourke SHAI SHKOLNIK

Coach Shoulder Bag- 150$
Dooney & Bourke Shoulder Bag- 300$

Dooney & Bourke have very expensive handbags, with quality materials, that are mainly targeted for older women. On the other hand, Coach have pretty cheap handbags compared to Dooney & Bourke, and their materials are a bit less expensive, and that is mainly because it is made for young women that don't have a lot of money because they just started to work or they are still in college.

Coach instagram ad
Dooney & Bourke magazine ad

Dooney & Bourke have ads mainly in fashion magazines, but the comapny doesn't have a very strong social media presence, only 50k followers on instagram. On the other hand, Coach has a very strong social media presence, with 1.5 million followers, which is a lot of people considering they only sell in North America and Japan.

As of July 2016, there were over 425 Coach stores in North America, approximately 520 directly-operated locations in Asia, and approximately 40 in Europe. Coach also operates e-commerce websites in the United States, Canada, Japan, Mainland China, the United Kingdom and South Korea with informational websites in many other countries.
Dooney & Bourke bags are sold in department stores (such as Macy's and Nordstrom), online, and by catalog. The company operates about 10 of its own stores internationally, including seven locations in the US and a flagship shop in Manhattan. It boasts about 20 US outlets.

As you can conclude from the data above, Dooney & Bourke have less stores than coach, and they mainly rely on retail stores like Macy's and Nordstorm, which is a threat to the company. On the contrary, Coach has a wide range of stores all over North America and Asia.

Strengths- Cheap compared to competitors, but has a luxurious look.

Weaknesses- Only for Women, poor inventory turnover rate.

Opportunities- High potential for increased sales with new product line for each season, promote on more countries (Europe).

Threats- The target market is young women, and older customers choose other brands, because coach bags are more cheap, and young women tend to have less money to spend. Also, Coach sells mainly in North America and East Asia.

Strengths- Handbags and wallets are made from expensive materials, and even though the price is higher than their competitors, many women prefer to get better quality for higher price.

Weaknesses- Little social media presence, much less than coach.

Opportunities- Expand into social media, which will attract many potential young buyers that use social media on a daily basis. Expand into more countries, in Europe and Asia.

Threats- Companies with better social media presence like Coach, might overshadow them in the long run when almost everyone will be using social media, even old people, in their 70's.

Recommendation to CEO- The company is doing great, it has a bigger target market and a very strong social media presence. At least in the foreseeable future, no changes are needed to the company, because the company is doing much better than its competitor.

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