Tiffany and Co

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SWOT analysis

Strengths

Tiffany & Co is an iconic jewelry brand with global recognition. It also has excellent, personable customer service.

Tiffany & has an efficient direct marketing strategy through the official website and catalogue. It has adopted multiple direct distribution channels, including direct sales through its stores all over the world. The company also sells the products in its online portal and also in catalog sales.

Broad offerings – Tiffany & Co. offers a broad range of products, including jewelry, china, crystal, stationary, fragrances and accessories.

Weaknesses

Tiffany and Co.’s high product prices, although a reflection of quality of goods, can become an issue during economic downturn where customers buying power decreases and they will stop spending on goods are considered luxury and non-essential.

The company also can be affected by the fluctuation in prices and availability of precious stones and diamonds.

Opportunities

Global economy is making things easier for the company to have more stores and sell more products all over the world.

Nowadays, not only women are interested in fashion. Men’s interest in fashion is growing. This is an opportunity to sell more products for Tiffany & Co.

Online shopping is an opportunity to have more sales, because online shopping has become very popular all over the world. People in a lot of cases don’t have time to go to the stores.

Tiffany & Co. mainly targets women and upper-middle to high income consumers. The company can create more opportunities by expanding their selection with more accessories such as ties and money clips etc. in the men’s department. Also the company should continue its strategies of offering lower price point items to appeal to middle-income and younger consumers.

Threats

Economic slowdown can have a great impact on the company’s overall growth and profit margin. During difficult economic situations, since the products offered by Tiffany & Co. are considered discretionary goods, people will cut back on spending and hold off purchases of luxury items.

Another threat the company faces are the availability of counterfeit products in the market. This not only can affect Tiffany & Co.’s sales and growth but also the company’s reputation.

Tiffany & Co has also the risk of doing business internationally. This could increase the costs because laws and regulations are different in different countries.

Recommendations

One of the things I would recommend is that Tiffany and Co. should offer rewards or discounts to customers. This would bring more new customers and in the same time would satisfy existing customers.

If you go to the Tiffany and Co website, you cannot find a list of all products online, but only some of them. A lot of customers that buy online have been complaining about this. I would suggest Tiffany and Co to list all the products online because this would bring more profits.

Recourses used:

http://www.tiffany.com/WorldOfTiffany/TiffanyStory/Default.aspx

http://investor.tiffany.com/secfiling.cfm?filingID=98246-15-38