Tiffany’s Little Blue Box: Does It Have Any Strategic Significance?
What are the company's vision/mission and objectives?
Vision statement: “Tiffany & Co. collaborates with other
forward-looking leaders in the jewelry industry and
with nongovernmental organizations in order to
positively influence the entire jewelry supply chain”.
Mission Statement: “ to be the world’s most respected jeweler”.
Objectives: To was to remain one of the top higher quality players along with companies like Bulgari and Cartier.
Targets the more affluent population and still maintains their no haggling policy, something which dates back to the original store. Business Strategy
Strict hiring standards, every employee must compete six to eight weeks of training in knowledge, skills, and product training, as well as pass a written test before they are allowed to meet customers and work on the Tiffany & Co. sales floor. Foreign Markets
The company has expanded its stores international locations, Europe and the Asia-Pacific. SWOT Analysis
Strong Direct Selling Strategy
Tiffany has multiple direct distribution options. US retail sales include direct sales through Tiffany stores or through business-to-business direct selling operations. The company sells its products online at tiffany.com and through catalogs. The company offers products through its website. •
Tiffany’s offers a wide range of products from fine jewelry, timepieces, sterling silverware, china, crystal, stationary, fragrances and accessories, and its broad range of diamond offerings as well as precious and semi precious stones. The company also refreshes its product range at regular intervals. The Blue Books showcases its latest jewelry collections. It is also in the midst of developing a line of jewelry made from titanium.
Strong Brand name
Tiffany is one of the leading brand names in the fine jewelry market. It is one of the world's premier jewelry designers and retailers. Apart from Tiffany, the company owns trademark registrations for Tiffany & Co, Tiffany Blue Box and the color, Tiffany Blue, for a range of product categories in the US and other countries. The company's leading brand name provides it with an edge over its competitors.
These are the figures due to the recession that has hurt the company: 2008-2009 due to recession, sales have dropped.
2008 overall revenue decreased by 2.7%.
2009 sales were down 4.9%.
Expansion in retail outlets
In 2006, Tiffany’s opened five US stores, three retail outlets in China, four in Japan, one in Korea and one in Vienna, Austria Monterrey, Mexico and Vancouver. These openings lead to an 8% increase in sales and Tiffany’s has continued to open more stores since. These openings and more specifically, their strategic placement, expand the company’s reach geographically as well as improving its market position. •
Increasing online sales
Online shopping has grown in popularity in the US and Tiffany’s offers an online site (Tiffany.com) that hosts over 3,500 products. There are also international versions of the site ie tiffany.com/uk offers merchandise for consumers in England, Wales, Northern Ireland and Scotland. Business account holders can make purchases through Tiffany.com/business. Online sales in addition to being convenient for customers, improve the company’s margins by cutting down on operating costs so Tiffany’s is sure to profit from their online shopping site. •
New business venture
In 2006, Luxottica Group and Tiffany signed a ten-year eyewear license agreement for the design, manufacturing and distribution (worldwide) of ophthalmic and sun collections under the Tiffany & Co. brand name. This new venture will not only add more variety to their already diverse product line up, but also compliment the product line offering customers a wide product basket.
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