Tiffany & Co Case Study

Branding

Tiffany & Co. has experienced large growth in the past 30 years and has built an immensely strong brand name and reputation in the jewelry industry. Tiffany & Co. has been in the local market for more than twenty years and the large scale retail stores are located in the shopping areas with high human traffic. Over the years, Tiffany & Co. has created a strong local presence as it is instantly recognizable by the blue boxes and bags. The exclusive and prestige brand image remains consistent globally.

Distribution Control

One of the key strength of Tiffany & Co. is the incorporation of a strong direct selling strategy, which has control over the different distribution channels. The retail sales of the company in the US include direct

Tiffany & Co.’s main target audience are the middle to upper class consumers who has spending power. However, the poor economic situation will affect consumers’ buying decision as jewelry is not considered as a need. Luxury items will be the first to go when a recession occurs. A poor economy will mean that spending power will be low and this in turn affects the company’s revenue growth.

Declining cash flows

The Japan market has not been performing well as the consumer confidence has declined. Low consumer confidence has impacted the company’s operations in Japan and caused it to close seven stores between the periods 2006-2007. A continued underperformance in Japan would further impact on the revenue growth. Such decline in cash flows would strain the company’s financial positions. This in turn will limit the company’s investment options and dividend payment

is a company full of opportunities - by engaging the correct method, it allows the company to remain competitive and have an advantageous growth in the market with an opportunity to expand its retail outlets. Tiffany & Co. has been persistent in its pursuance of store expansion strategy that it initiated in 2007 and managed to open new boutiques and stores in various locations internationally. These new retail outlets would not only increase the geographical reach of the company, at the same time enhancing its position and competitiveness in the market.

Online Sales

In addition to retail/direct sales, there are impressive opportunities from the online sales. Online shopping is in fact an upward trend in the United States and the world at large. It is not only easy and cheap to set up, but also having the capacity to reach an expanded size of the market in all corners of the world. With this opportunity, it allows the company to increase its sales while decreasing its cost particularly in marketing.

Expansion into men’s market

Favoring the lifestyle trends now, men are more willing to invest money and time on their looks. By launching new jewelry and accessories to the men’s market, this definitely provides Tiffany with new opportunities to grow and increase their company’s