STRATEGIC MNGT- TIFFANY & CO.

STRATEGIC MNGT- TIFFANY & CO. - Justin Gardiner Dr....

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Justin Gardiner Dr. Ward BUSI 4349 25 February 2009 A Specialty Fine Jewelry Retailer
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A Specialty Fine Jewelry Retailer Executive Summary: Tiffany & Co., a premier successful specialty retailer of fine jewelry, has decisions to make based upon pressures from intense competition and economic trends. Tiffany’s currently accrues $2.938 billion in sales, and has stores open in the U.S. as well as internationally and also maintains business from their website, and direct mail catalogs. In order to stay ahead of competition and improve on current operations, I propose that Tiffany & Co. expand into the suburban areas of the United States. This is an unexploited market by competitors, and immerses the company in their target market, being high income households. This will prove to be profitable, and is less risky than other proposed alternatives. Industry Analysis: The specialty retailer market for fine jewelry, based on information provided through the case, continued to increase annual sales through the end of the last economical recessionary period the United States experienced around the years of 2001-2002. Though a petite slump of sales followed in the third quarter of 2001, more so after the September 11 th attacks in New York, specialty fine jewelry sales “were up .7 percent over 2001. Fine jewelry stores sales performance in the second quarter of 2002 were even better with sales 4.3 percent ahead of 2001 [Unity Marketing, 2002]” (Orji). Statistics provided by the case showed roughly 50 percent of households in the U.S. bought jewelry in 2002. Almost 40 percent of them bought fine jewelry. For the purpose of this analysis, the definition of the term “fine jewelry” will be applied to the description provided. This designates that fine jewelry is “made from precious or semiprecious
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stones (such as diamonds, rubies, sapphires, emeralds, and other stones), metals that are 14 karat gold and above, sterling silver, or platinum. It is more intricate in detail and has minimal flaws” (Orji) as judged against cheaper jewelry. The main competitors in the retail sector include As trends progress and consumers become more “fashion conscious,” they look to extravagant products such as fine jewelry, to acquire. The industry buying process has expanded through company websites, catalogs for direct mail, in addition to traditional retail stores presenting the purchasing decision more conveniently to consumers. This idea of convenience shopping must be projected in each of these processes, making it efficient and as easy as possible to shop via retail store, internet, or catalog. In a study done by “Advertising Age” in 2002, consumers expressed their top three
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STRATEGIC MNGT- TIFFANY & CO. - Justin Gardiner Dr....

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