Tiffany & Co Case Study
Strategic Problems Statement
Growth without compromise strategy has been the Tiffany & Company culture since it was first established which contributed to its long success. However, in the recent years the company has been suffering from a declination of their sales and they are facing a dilemma between maintaining company reputation and culture with the vision of the main shareholder of the company.
Issues Identification
Issue 1 Declination of sales.
Issue 2 The conflict between shareholders and company management decision of to which path Tiffany should take. The shareholders want Tiffany to rapidly grow and move forward in order to generate more profitable revenue by suggesting options that goes against Tiffany Growth without compromise strategy.
Issue 3 Tiffany is considering licensing its brand to a product that is not the company’s core competencies and opening new shops faster. The issue here is that Tiffany is going against its growth strategy this might dilute the company.
Issue 4 The company’s vertical integration strategy has been costing the company a lot of investment.
Issue 5 Separating Iridesse from Tiffany management. The problem here is that leaving an inexperienced firm running on its own may cause issues if not supervising.
Solutions
Issue 1
Set 1:
Continue the opening of new stores in South East Asia’s prestigious shopping malls instead of opening in the States.
Set 2:
Launching new exclusives or limited editions product to boost envy of belonging and purchasing.
Set 3:
Creating new concept of Tiffany stores that every day people can relate to and afford to purchase quality product for a reasonable price.
(Recommend all three sets)
Issue 2
Set 1:
Tiffany management needs to be flexible and understand the concept of public company with the need of shareholders. Reevaluating the company concept and belief. As for shareholders, should also understand where the company is from and
Growth without compromise strategy has been the Tiffany & Company culture since it was first established which contributed to its long success. However, in the recent years the company has been suffering from a declination of their sales and they are facing a dilemma between maintaining company reputation and culture with the vision of the main shareholder of the company.
Issues Identification
Issue 1 Declination of sales.
Issue 2 The conflict between shareholders and company management decision of to which path Tiffany should take. The shareholders want Tiffany to rapidly grow and move forward in order to generate more profitable revenue by suggesting options that goes against Tiffany Growth without compromise strategy.
Issue 3 Tiffany is considering licensing its brand to a product that is not the company’s core competencies and opening new shops faster. The issue here is that Tiffany is going against its growth strategy this might dilute the company.
Issue 4 The company’s vertical integration strategy has been costing the company a lot of investment.
Issue 5 Separating Iridesse from Tiffany management. The problem here is that leaving an inexperienced firm running on its own may cause issues if not supervising.
Solutions
Issue 1
Set 1:
Continue the opening of new stores in South East Asia’s prestigious shopping malls instead of opening in the States.
Set 2:
Launching new exclusives or limited editions product to boost envy of belonging and purchasing.
Set 3:
Creating new concept of Tiffany stores that every day people can relate to and afford to purchase quality product for a reasonable price.
(Recommend all three sets)
Issue 2
Set 1:
Tiffany management needs to be flexible and understand the concept of public company with the need of shareholders. Reevaluating the company concept and belief. As for shareholders, should also understand where the company is from and