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Part A Summary - Part B Tiffany Co In Denmark Stephanie...

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Part B Tiffany & Co. In Denmark Stephanie Schaeberle Liza Semenova Barry Waters Charlie Ober Ying Lin 1
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Part A Summary: Tiffany & Co. was founded in 1837 and supplies fine jewelry, timepieces, sterling silver products, stationary, fragrances, personal accessories, crystal and china. Tiffany currently has 206 stores open worldwide. Tiffany & Co’s main competitors include Cartier, Bulgari, and Moët Hennessy Louis Vuitton. In the past Tiffany & Co. has targeted the upper class and upper middle and middle class. However, in the past year Tiffany has developed products that boosted sales during hard economic times as well as allowed it to expand to a wider client base, such as the key charms which start at 100 dollars. Although Tiffany & Co. is located throughout many nations in the European Union it is not in Poland, Denmark, or Sweden. These nations have the three highest GDP’s of the nations Tiffany & Co. are not already located in. Poland is a democracy with a high population and a market- driven economy. However, Poland still has a far way to go in terms of strengthening its economy and modernization and has a low level of consumer spending. Sweden has a large urban population, a GDP per capita of about $37,000 and is easily accessible by water and internal infrastructures such as trains. Yet transportation of goods by water can be difficult during winter months due to icy waters. The official language is Swedish creating language barriers, and Tiffany & Co. would have to reeducate the population on luxury goods making for large start-up costs and low profitability. After analyzing all three nations, we decided that Copenhagan, Denmark. This has proven to be the best city for Tiffany to enter into due to its accessibility by airplanes, canals, roadways, and seaports. Denmark has a high GDP, increasing population, and low tax on goods and production. Ease of expansion is supported by a similar government, beliefs in personal freedoms, fluency of the English language and an increase in the salaries and positions for women. 2
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Market Entry: Foreign trading companies are able to expand into Denmark either by creating subsidiaries or trading directly through a branch. (“Opening a branch- Denmark,” 2008) Tiffany & Co. is currently a wholly owned subsidiary and the same method of entry will be executed with expansion into Copenhagen, Denmark. Businesses must meet certain standards in order to be established in Denmark such as respecting professional codes of ethics, obtaining the necessary authorizations, verifying all necessary qualifications, and checking tax requirements. (“ Opening a branch, 2010) A subsidiary is also required to go through the legal requirement process in the host country, in this case, the United States. Avon Products was originally the parent company but in 1984 an investor group headed by Chairman William R. Chaney bought Tiffany & Co (“Tiffany &Co.”, n.d.). A wholly owned subsidiary is defined as a company where the parent company owns 100% of the stock. (Forbes Digital, 2010) Tiffany & Co. has already been highly successful for many years operating as a wholly owned subsidiary. The benefits include market penetration,
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