Tiffany Case Analysis

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Tiffany & Co.
Tiffany & Co. is a retailer, designer, manufacturer, and distributor of luxury fine jewelry. As of January 31st, 2003, they had 44 company-operated stores within US borders and 82 company-operated stores internationally. Fine jewelry makes up 79% of their net sales followed by other products such as timepieces, stationery, and sterling silverware. Michael J. Kowalski, Tiffany & Co.’s current CEO, has the same mission the company had when it first started in 1837: to be the world’s premier luxury brand of fine jewelry as well as America’s house of design.

S.W.O.T. Tiffany & Co. has done an outstanding job in developing a strong brand name, which represents nothing but the best, most durable, and
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With this increase in wealth, combined with the continual increase in population size, there should always be a strong market for luxury goods. Technological advancements have played a major role in the industry since the late 1990s. Jewelry in particular has a very high weight-to-value ratio, which makes shipping easy and keeps shipping costs relatively low. Internet sales have passed catalogue sales in over 10 of the top 15 luxury jewelry companies. Tiffany & Co.’s internet sales passed its catalogue sales shortly after the company opened its website in 1999. The complaint that the company-operated stores closed before a majority of the workforce went home for the day, is now somewhat outdated now that Tiffany has a very effective and functional website that can be accessed 24 hours a day. This year, Tiffany & Co. announced that over 60% of its direct sales were generated through their website. Demographic trends play a much smaller role in the luxury jewelry business than it does in many other industries. Tiffany & Co.’s various jewelry collections cater to virtually all ages, ranging from young teens to matures, well beyond there sixties. However, the baby boomer generation, which is made up of persons in their forties and fifties, does have a large amount of buyer power. Several recent trends have affected the luxury jewelry market. Men’s jewelry sales increased by over 150% from 2006 to the present (specifically money clips and cuff

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