Tiffany Swot Essay

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Case #22: Tiffany & Co. I.) SWOT Analysis Strengths: - Positive brand image - Diversity of product offerings - Strong financial position (good liquidity, not too levered, increasing profits, etc.) - Effective inventory management - Knowledgeable sales staff (within company operated stores) - Multiple sales/distribution channels - Exclusive licensing agreements with respected jewelry designers Weaknesses: - Too reliant (79% of total sales) on the fine jewelry product line - International net sales less than domestic net sales despite more international stores - Weak use of celebrity sponsors Opportunities: - Potential for growth in emerging markets (Brazil, China, Canada) - Strategic partnerships with mining companies to help reduce overall costs - Growing acceptance of internet shopping can help them globally expand without building physical stores in other countries Threats: - Global economic downturn will reduce the demand for high-end luxury goods - Increased competition from various competitors - Reliant on a resource (diamonds) which can fluctuate in price and availability - Environmental regulation that would affect their production/supply processes II.) Strategic Recommendations Based on the SWOT analysis, I would make a few strategic recommendations to Tiffany. Besides, improving international sales, which I will address later, I think it is critical for Tiffany to actively seek business partners like Aber Partners. This relationship has proved to be successful for Tiffany, as it allowed them to secure their future diamond needs in Canada through Aber and make the production process more efficient. Entering into partnerships like this should be explored throughout the world as it gives the company a distinct advantage over the competition, and it ensures that the company can control its costs and focus their efforts on their

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