Tiffany & Co Case Essay examples

679 Words Oct 26th, 2014 3 Pages
The Tiffany & Company Case Analysis

Introduction.

Tiffany & Co. holds the leading position in the fine jewelery industry with a deep history since 1837. Tiffany's market cap was appropriately US $4.4 billion and has become one of the most well known companies in the world. In 2007 Train Fund become the largest shareholder of the company. He believed that Tiffany was undervalued and stated that it wants to help the company “improve its earnings per share by addressing strategic issues and various operations” in response, the company began to consider different actions to increase shareholder value.

1. Strategic problem statement:

Problem of growth. This growth strategy was called “Growth without Compromise”. Company
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This is a good opportunity to create a new way of offering the products trough the Internet.

Issue 5. Growth of Tiffany retail stores, concessions & boutiques:

Tiffany operated more then 167 stores & concessions in the United States, Canada, Central and South America, Japan, and other Asia-Pacific countries. The percentage goes this way: appropriately 50% of sales are in Japan, nearly 25% were in other Asia-Pacific countries and 18% in Europe.
Issue 6. Japan & Tiffany:

Tiffany only has 1% of the $20 Billion Japanese jewelry market; Strong demand for luxury goods in 80’s and early 90’s ‐Demand slowing; Mitsukoshi the largest Japanese retailer of Tiffany products; Tiffany still perceived long term growth potential in Japan Mitsukoshi premium too high. Tiffany believes that 20‐25% reduction in price would boost profits; In 1993 Tiffany Japan acquires management operations of 29 Mitsukoshi boutiques.

Issue 7. (Weakness) Limited new-store openings:

The company preferred to staff a new store with 50% current Tiffany employers and 50% experienced local salespeople from fine jewelery stores in the new area.

Issue 8. Weakness 2:

The company managed its product development and new-design rollouts on an 18-month rolling basis.

Alternative solution proposals: 1 & 2 Company should stands to maintain high standards and take care about the prestige and exclusiveness of the brand. Not to

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