STRATEGIC MANAGEMENT

PRESENTED BY: 1) FATIN SYAZWANI SAFIYUDDIN S812878 2) NORDIANA JAMRY S813482 3) NOOR FAEZAH BT BASARY S812880

Tiffany and Co.

In New York City in 1837, Charles Lewis Tiffany and John F. Young founded Tiffany and Young, a store dedicated to selling stationery and costume jewelry. In 1845, began selling real jewelry. It was not until 1853 that the store became known as Tiffany and Company. During the late 1940s it added silverware, timepieces, perfumes, and other luxury items. Throughout history they have managed to solidify their position as the leading competitor in the jewelry industry through creating a brand that shows value, quality, superior design, and exclusivity.

Tiffany and Co.

Strong brand name and customer loyalty.
Infamous Tiffany Blue Box

One of Tiffanys main goals is to ensure the longterm integrity of the companys brand by creating a feel good experience. Mature stage of the product life cycle. Experienced large growth for the past thirty years.
The jewelry industry relies heavily on consumer spending, which in turn relies on a strong economic climate.

Tiffany and Co.

Even during this highly volatile economic downturn, Tiffany and Co. is a highly attractive company and the leading competitor. The strong position that they have established in the marketplace is not likely to disappear, and it will only continue to grow once they counteract the changing environment with implementing a strategy that reiterates their founding vision.

Q7. What strategic issues and problems does Tiffany & Co. management need to address?
There are several issues that Tiffany & Co. management needs to address such as the competitors, strategies, strengths and weaknesses of the company.
In terms of competitors, as we know there are four largest players in the jewelry industry have 20% of the total jewelry market which is Signet Group, Bulgari S.p.A, Blue Nile Inc and Costco. Therefore, Tiffany & Co has to plan the effective strategies in order to remain successful in this industry.

Furthermore, several strategies have been planning consisted of product differentiation strategy, aggressive advertising campaigns and celebrity endorsements.

Tiffany & Co has strong brand name. For example, Tiffany & Co which has impressive name can sell a nearly flawless; one-carat diamond with a color grade of F (colorless) with the amount of $16,600. However, even though there is diamond which also has same quality without the impressive name, the cost is approximately $10,500. Moreover, there are several problems that Tiffany & Co. management needs to address such as its competition, sales, product and supplier. Even though Tiffany & Co has strong brand name and constantly maintain with the strategy of maintaining the luxury brand and service also with the higher price, they still have problems to survive with the other competitor. For example, during recoveringeconomy, many consumers changed the definition of value. They will think that they buy a three-to-four-carat diamond ring of the same quality for the same price at Walmart or Costco rather than only get one-to-two-carat diamond ring at Tiffany or Cartier. According to financial summary for Signet Groups and Tiffany & Co, the revenue of Signet Groups is higher than Tiffany & Co. Besides that, Tiffany also encounter with the counterfeit goods when eBay sold the counterfeit goods of Tiffany. In 2004, Tiffany sued eBay for alleged trademark infringement, trademark dilution, and false advertising, given that the majority of Tiffany item.

Q8. What recommendations would you make to Tiffany & Co. management to strengthen the companys competitive position and future strategic and financial performance?
Tiffany needs to differentiate more and enhance the brand value to get more revenue.

Needs to constantly do research and development in order to ensure their product line to remain as the pioneer of latest designs.

Always Remember
Diamonds are a girls best friend!