Coe Case Stydy Essay

The Coes company has been in seam since the 1950s when the founder Terry Windham invested $600 in 32 chairs to rent out to sell houses. From there on, the crease expanded into party equipment and sickroom gear. The founder further shifted the business into household goods and residential furniture in the 1970s. The company has since been fireing. Stan Windham, Terrys son who now is the CEO of Coes, recently opened its 1000th stick in in South Tucson and the company is taking over $2 one thousand thousand a year in revenues.Unlike their competitors, Coes has had an advantage in the market by always emphasizing ownership and offering periodic payments schedules with shorter agitate periods. They trained their managers to only approve lease agreements for people who they were certain(p) they could afford the payments.Also, one of their strengths was to be satisfactory to identify and target the customers who neer before were interested in renting-to-own but due to the state th at the sparing was in, they were afraid to commit to big-ticket events and instead decided to rent-to-own. They in like manner attracted customers by offering free delivery and free repairs with an option to return the item if customer was not able to make payments but when their financial spotlight improved they could resume the contract with no penalties. A weakness of Coes I would say would be that the company did not diversify their endangerment and solely built growth outline only in the U.S. tho for Mr. Rental, Coes dos not have any other channelise competitors in South Tucson. Yes, Wal-Mart is there as well but uncomplete Mr. Rental nor Wal-Mart atomic number 18 the same as Coes. To distinguish itself from Mr. Rental, Coes offers shorter contract periods, free delivery and free repairs and Wal-Mart is not a rent-to-own company.However, there are other external factors to be considered and those being both opportunities and threats. Coes has been considering unveilin g into the Mexi prat market, which they believe would be a good strategic give the axe for the company and help them diversify their portfolio.Taking into consideration the low transportation, sedulousness and real estate costs, Mexico would be an inexpensive place to open a advanced Coes store. Of course where opportunities exist, threats exist also. With plenty of growthopportunities in the U.S., an expansion to Mexico would add complications and risks to the company.The company had experienced this first hand when they seek to expand to Puerto Rico and due to shrinkage and not being able to find the right personnel that did not go to well. On surpass of everything, the consumer protection advocates are attacking the rent-to-own companies by claiming that the prices of the products are 60% to 90% higher than those of traditional retailers. While every investor is aiming towards growth, they also want to meet it safe.Coes has been considering going international and building a growth strategy in other parts of the world for a while. By analyze the strengths and weaknesses, the company is holding a strong competitive position and it can continue to do business at its current pace. I also believe that they should expand their business in Mexico.An expansion to Mexico would offer a great potential. An in-depth market research will help analyze the patterns and habits of costumers. Doing business in Mexico will not only help the company grow but it will also benefit the U.S. economy. Ever since NAFTA took effect, both puffy and small American companies have expanded in Mexico. A govern of locations in Southern USA have developed rapidly to come up up with the heavy trade between US and Mexico offering new jobs to U.S. Citizens and boosting the U.S. economy.