Headquartered in New York City, Coach, Inc. is the leader in North America of women’s handbags, but in 2014 and 2015, the company faltered badly due to intense rivalry in the industry. Even though most U.S. stocks rose more than 30 percent in 2014, Coach’s stock price declined more than 30 percent. Coach’s EPS steeply declined throughout 2015 and the company’s net income declined 50 percent in Q1 of 2015. Coach’s products are sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. However, competitors such as Michael Kors (KORS), Kate Spade (KATE), and Tory Burch are eroding Coach’s market share, and importantly, promotional activity across the category appears to be increasing. In response, Coach is closing dozens of underperforming stores as double-digit sales decline continue. Coach is formulating strategies to protect its market share in the United States, including hiring a new design team, revamping its marketing, remodeling stores, and rethinking its wholesale channels, but it could take an extended period of time to turn around a business so large (more than $3 billion in sales in North America). In 2015, Coach acquired Stuart Weitzman footwear brand for $530 million from private equity firm Sycamore Partners. Coach is spending $570 million through 2017 to improve stores and wholesale locations, plus $50 million to boost advertising. Coach is impacted by the value of the U.S. dollar and by economic and political conditions globally. The company markets its products to consumers through stores in North America, Japan, Mainland China, Hong Kong, Macau, Singapore, Taiwan, Malaysia, South Korea, the United Kingdom, France, Ireland, Spain, Portugal, Germany, and Italy. It also sells its products to wholesale customers and distributors in approximately 35 countries. Coach operates about 300 retail and 200 outlet stores in North America; 198 coach-operated concession shop-in-shops within department stores, retail stores, and outlet stores in Japan; and 277 coach-operated concession shops within department stores, retail stores, and outlet stores internationally. What, in your opinion, are the conditions contributing to Coach's demise? Which of Porter's Five Forces are contributing most to this demise? What, in your opinion, would be the key differentiating features sought among handbag customers? What could Coach do to re-earn lost business? Explain.