Tiffany case
Tiffany & Co. is a world famous retailer, designer, manufacturer, and distributor of luxury fine jewelry. It was founded in New York City in 1837 by Charles Lewis Tiffany and John Young. In 1979, the company sold to Avon Cosmetics who change the market strategy form luxury jewelry to less expensive items in next few year. Until 1984, the company sold to a group of investors, it had reinstate the exclusivity and luxury again. Now, it has been growing to one of the top luxury goods and jewelry retailers in the world.
Problems/Issues
As one of the top luxury jewelry retailers，Tiffany & Co. is also facing some big problems, the first one is that in the jewelry selling industry, the competition is very fierce. More and more new entrants go into this market in order to take a part of shares because the entrance of into this industry is quite low. Except some retailers who have physical stores, some online jewelry selling companies become new rivals and attract many customers who more enjoy shopping online.
The second problem is that the Tiffany & Co. marked itself as a high-value luxury jewelry retailer and manufacturer, it sells its products at an extreme high price which based on its well-known brand. There is no doubt that it was their strength and a good strategy in the past years, Tiffany & Co. earned a lot of money by its successful niche and differential marketing, but due to the changes in market status and consumption idea in recent years, buyers have more choices than before so that they have more power to bargain and change to choose higher value product rather than a famous brand.
The third problem is that Tiffany & Co. ignores the consumer groups other than affluent people, like mid-high-income groups. Other companies like Costco sets lower prices to attract more consumers, its extensive strategy helps it make the largest sales among the jewelry retailers. Lacking of those market shares will prevent Tiffany from a better development.
SWOT
Problems/Issues
As one of the top luxury jewelry retailers，Tiffany & Co. is also facing some big problems, the first one is that in the jewelry selling industry, the competition is very fierce. More and more new entrants go into this market in order to take a part of shares because the entrance of into this industry is quite low. Except some retailers who have physical stores, some online jewelry selling companies become new rivals and attract many customers who more enjoy shopping online.
The second problem is that the Tiffany & Co. marked itself as a high-value luxury jewelry retailer and manufacturer, it sells its products at an extreme high price which based on its well-known brand. There is no doubt that it was their strength and a good strategy in the past years, Tiffany & Co. earned a lot of money by its successful niche and differential marketing, but due to the changes in market status and consumption idea in recent years, buyers have more choices than before so that they have more power to bargain and change to choose higher value product rather than a famous brand.
The third problem is that Tiffany & Co. ignores the consumer groups other than affluent people, like mid-high-income groups. Other companies like Costco sets lower prices to attract more consumers, its extensive strategy helps it make the largest sales among the jewelry retailers. Lacking of those market shares will prevent Tiffany from a better development.
SWOT