Tiffany Case Analysis

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Critical summary Tiffany and Company is one of the leading U.S. luxury jewelry brands, and their telltale “little blue box” has become a coveted item by women everywhere. Tiffany & Co. was founded in 1837 by Charles Tiffany and John Young and has grown to generate more then $2.6 billion in revenue through their 167 global retail outlets. The growth strategy that has seen them through their long reign is “growth without compromise”. In 2007, due to objections from their largest shareholder, Tiffany began looking at strategies to increase shareholder value. Two options were presented; opening new stores at a faster rate, and licensing Tiffany to an established Italian fashion-eyewear manufacturer/distributer. The ownership of Tiffany &…show more content…
Suggested Alternative Actions Status Quo If Tiffany & Co were to do nothing and follow the path they are currently on, it looks like they will continue to make a profit for a while, although possibly not as high of a profit as if they were to stop their rapid advancement. Once they were to stop opening new stores they might hit a point where the profit margin would go up again. Go international Since the opening of more international stores, international sales have improved and domestic sales have declined. If those statistics hold strong, one strategy would be to focus solely on international efforts for the rapid opening of new stores. This way, resources won’t need to be split and more effort can go into the emerging international market. Growth withOUT compromise Another option would be to hold strong to Tiffany & Co. values and stick to the same strategies they have been using for the past 100+ years. Shareholders obviously hold a significant amount of value, but for a company that is so serious about building and keeping their brand image, making drastic changes to appease a few investors could be damaging to the brand. With this strategy, Tiffany & Co. would go back to their original strategy of opening no more then 5 stores per year so that they do not over-saturate the market and so that they can continue to train their employee’s in such a way that fosters excellent customer service. Although this

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