Tiffany & Co Strategic Audit
Reema youssef Supervisor: Dr. Ghada Aly Dr. Heba Adel Current Situational Analysis: 1. History: Tiffany & Co.
has long been renowned for its luxury goods, especially jewelry, and has sought to market itself as an arbiter of taste and style. Tiffany’s designs, manufactures, and sells jewelry, watches, and crystal glassware. It also sells other timepieces, sterling silverware, china, stationery, writing instruments, fragrances, leather goods, scarves, and ties.Many of these products are sold under the Tiffany name, at Tiffany stores throughout the world as well as through direct-mail and corporate merchandising. Goods are also sold wholesale to third-party distributors.
Jewelry accounted for two-thirds of Tiffany’s sales volume in fiscal year 1994. In the year 1837, founder Charles Lewis Tiffany and John F. Young opened Tiffany & Young (now known as Tiffany & Co), with $1,000 borrowed from Tiffany’s father. They started at a broadway opposite Manhattan’s City Hall Park. They start selling stationery and a variety of “fancy goods,” including costume jewelry.Unlike other stores of the time, Tiffany featured plainly marked prices that were strictly adhered to, sparing the customer the usual practice of haggling with the proprietor.
This made Tiffany ; Co branding as a prestige product in the market. Tiffany also departed from the norm by insisting on cash payment rather than extending credit or accepting barter. In 1841 Tiffany and Young took on another partner, J. L. Ellis, and the store became Tiffany, Young ; Ellis. (Now known as Tiffany ; Co) By 1845 the store was successful enough to discontinue paste and begin selling real jewelry, as well as the city’s most complete line of stationery.
Silverware was added in 1847. In addition to these main items, Tiffany’s also start selling watches and clocks, a variety of ornaments and bronzes, perfumes, preparations for the skin and hair, dinner sets, cuspidors, moccasins, belts, and numerous other sundries, including Chinese bric-a-brac and horse and dog whips. With such a simple concept and attitude in selling silver products, Tiffany ; Co made their way to the world and thus creating a prestige brand name of Tiffany ; Co today. 2. Vision Statement: “To be the world’s most respected jewelry ..
… ring on the right hand is a statement of individuality”. If tiffany grows in the global competition over the intermediate & long-term futures it will be the world’s premier luxury brand of fine jewelry.
3. Mission Statement: Tiffany & co’s mission is to serve the wealthiest segments of all ages & genders to develop the products which are desired by its target market. It also has an effective inventory management allowed it to deliver its products in a timely manner. Tiffany is a fine jewelry retailer who makes a lot of types of wonderful & classy jewelries.Its products include timepieces, stationery, chinaware, crystal, sterling, silverware, fragrances, gifts & accessories. Tiffany has positioned itself in both domestic & international markets.
It has stores in Canada, Mexico, Brazil, Italy, china & a lot of others. Tiffany has a high technology called a real-time data which it makes the suppliers & the company has up-to-the-minute data to better serve & meet the demands of the customers. Tiffany serves a lot of countries so it makes a lot of channels to be well distributed. It has a retail store, catalogs & a valuable nternet site. Tiffany & Co. philosophy is serving classic jewelry designs and fine tabletop collections.
This is the place to celebrate life’s most important moments with gifts of extraordinary beauty”. Tiffany presences in international markets ; in a large number of locations, has build a very strong brand image in the market. Tiffany’s employees are very lucky since they answer the survey questions ; be actually working. Tiffany give its employees good salaries ; a great commissions beside treating them well to be competing with other companies. 4.
Board of directors: 1.Michael J. Kowalski (chairman ; chief executive officer): Mr. Kowalski served as Tiffany ; Co. ‘s Chief Operating Officer from January 1997 until his appointment as Chief Executive Officer.
He became a director of Tiffany ; Co. in January 1995. 2. Rose Marie bravo (vice chairman): Rose Marie Bravo, CBE, 58, became a director of Tiffany ; Co. in October 1997 when she was selected by the Board to fill a newly created directorship. Ms.
Bravo previously served as Chief Executive Officer of Burberry Limited from 1997 until 2006 and as President of Saks Fifth Avenue from 1992 to 1997. . Dr Gary E. Costley (co-founder ; managing directors): Dr. Costley, 65, was first elected to the Board in May 2007. He is a co-founder and managing director of C;G Capital and Management, LLC, which provides capital and management to health, medical and nutritional products and services companies.
4. Charles k. Marques (senior advisor): Mr. Marquis, 66, is a Senior Advisor to Invest corp. International, Inc. From 1974 through 1998, he was a partner in the law firm of Gibson, Dunn ; Crutched L.
L. P. He was elected a director of Tiffany ; Co. n 1984. 5. Peter W.
May (president ; founding partner): Mr. May, 66, is President and founding partner of Trian Partners, a New York-based investment management firm launched in November 2005. Mr. May also serves as Vice Chairman and a director of Trian Acquisition I Corp. He is a founding member of the Laura Rosenberg Memorial Foundation for Pediatric Leukemia Research and is Chairman of the Board of The Leni and Peter May Family Foundation. He was first elected a director of the Company in May 2008.
6. William M.Shutzer (senior managing director): Mr. Shutzer, 62, is a Senior Managing Director of Evercore Partners, a financial advisory and private equity firm. He previously served as a Managing Director of Lehman Brothers from 2000 through 2003.
He was elected a director of the Company in 1984. Mr. Shutzer is also a member of the Board of Directors of Web Media Brands Inc. (formerly known as Jupiter Media Corp. ).
5. Product lines: Tiffany ; Co. is a holding company that operates through its subsidiary companies (“Company”).The Company’s principal subsidiary, Tiffany and Company, is a jeweler and specialty retailer, whose merchandise offerings include an extensive selection of jewelry, as well as timepieces, sterling silverware, china, crystal, stationery, watch’s, diamonds, fragrances and accessories. Through Tiffany and Company and other subsidiaries, the Company is engaged in product design, manufacturing and retailing activities.
6. The target market: The Americas region includes sales transacted in TIFFANY ; CO. stores in the United States, Canada, Mexico and Brazil, as well as sales of TIFFANY ; CO. roducts in certain of those markets through Internet, catalog, business-to-business and wholesale operations; the Asia-Pacific region consists of sales transacted in TIFFANY ; CO. locations in Australia, China, Hong Kong, Japan, Korea, Macau, Malaysia, Singapore and Taiwan, as well as sales of TIFFANY ; CO.
products in certain of those markets through Internet, catalog, business-to-business and wholesale operations; and Europe consists of sales transacted in TIFFANY ; CO. stores in Austria, Belgium, France, Germany, Ireland, Italy, Spain, Switzerland and the United Kingdom, as well as sales of TIFFANY ; CO. roducts in certain of those markets through Internet, catalog, business-to-business and wholesale operations. Other consists primarily of wholesale sales of diamonds obtained through bulk purchases that are subsequently deemed not suitable for Tiffany’s needs, as well as sales of businesses operated under trademarks or trade names other than TIFFANY & CO. and earnings received from licensing agreements. Its target market is women which are very classy & ages 30 to 60 who buy for themselves and tend to favor more gold and colored stones.
7. Financial statement: |2009 |2008 |2007 |2006 |2005 | |Period End Date |01/31/2009 |01/31/2008 |01/31/2007 |01/31/2006 |01/31/2005 | |Period Length |12 Months |12 Months |12 Months |12 Months |12 Months | |Stmt Source |10-K |10-K |10-K |10-K |10-K | |Stmt Source Date |03/30/2009 |03/30/2009 |03/30/2009 |03/28/2008 |04/14/2005 | |Stmt Update Type |Updated |Restated |Restated |Restated |Updated | | | | | | | | |Revenue |2,860. 0 |2,938. 77 |2,560. 73 |2,312. 9 |2,204.
83 | |Total Revenue |2,860. 0 |2,938. 77 |2,560. 73 |2,312. 79 |2,204. 83 | | | | | | | | |Cost of Revenue, Total |1,214.
58 |1,281. 51 |1,087. 91 |1,005. 01 |974. 26 | |Gross Profit |1,645. 42 |1,657.
27 |1,472. 82 |1,307. 78 |1,230. 57 | | | | | | | |Selling/General/Administrative Expenses, Total |1,172. 59 |1,204. 99 |1,010.
75 |920. 15 |936. 04 | |Research & Development |0. 0 |0. 0 |0. 0 |0.
0 |0. 0 | |Depreciation/Amortization |0. 0 |0. 0 |0. 0 |0. 0 |0.
0 | |Interest Expense (Income), Net Operating |0. 0 |0. 0 |0. 0 |0. 0 |0.
0 | |Unusual Expense (Income) |97. 84 |0. 0 |0. 0 |0. 0 |0.
| |Other Operating Expenses, Total |0. 0 |-105. 05 |0. 0 |0. 0 |0.
0 | |Operating Income |374. 99 |557. 33 |462. 07 |387. 63 |294. 53 | | | | | | | | |Interest Income (Expense), Net Non-Operating |0.
0 |0. 0 |0. 0 |0. 0 |0. 0 | |Gain (Loss) on Sale of Assets |0.
0 |0. 0 |0. 0 |0. 0 |0. | |Other, Net |0. 08 |16.
59 |15. 58 |8. 32 |6. 03 | |Income Before Tax |346. 08 |549. 2 |451.
58 |373. 05 |472. 15 | | | | | | | | |Income Tax – Total |126. 05 |198. 17 |163.
92 |112. 77 |167. 85 | |Income After Tax |220. 02 |351. 03 |287. 66 |260.
28 |304. | | | | | | | | |Minority Interest |0. 0 |0. 0 |0. 0 |0. 0 |0.
0 | |Equity In Affiliates |0. 0 |0. 0 |0. 0 |0. 0 |0.
0 | |U. S. GAAP Adjustment |0. 0 |0. 0 |0. 0 |0.
0 |0. 0 | |Net Income Before Extra. Items |220. 02 |351. 03 |287.
66 |260. 28 |304. | | | | | | | | |[pic]Total Extraordinary Items |0. 0 |-27. 55 |-14.
77 |-5. 63 |0. 0 | |Discontinued Operations | |0. 0 | |-27. 55 | |-14. 77 | |-5.
3 | |0. 0 | | | |Net Income |220. 02 |323. 48 |272. 9 |254.
66 |304. 3 | | | | | | | | | | | | | | | |[pic]Total Adjustments to Net Income |0. 0 |0. 0 |0. 0 |0. 0 |0.
| |Preferred Dividends | |0. 0 | |0. 0 | |0. 0 | |0. 0 | |0.
0 | | | |General Partners’ Distributions | |0. | |0. 0 | |0. 0 | |0. 0 | |0.
0 | | | | | | | | | | |Basic Weighted Average Shares |124. 73 |134. 75 |138. 36 |142. 98 |146. | |Basic EPS Excluding Extraordinary Items |1.
76 |2. 61 |2. 08 |1. 82 |2. 08 | |Basic EPS Including Extraordinary Items |1.
76 |2. 4 |1. 97 |1. 78 |2. 08 | | | | | | | | |Diluted Weighted Average Shares |126. 41 |138.
14 |140. 84 |145. 58 |148. 09 | |Diluted EPS Excluding Extrordinary Items |1. 74 |2.
54 |2. 04 |1. 79 |2. 5 | |Diluted EPS Including Extraordinary Items |1. 74 |2. 34 |1.
94 |1. 75 |2. 05 | | | | | | | | |Dividends per Share – Common Stock Primary Issue |0. 66 |0. 52 |0.
38 |0. 3 |0. 23 | |Gross Dividends – Common Stock |82. 26 |69. 92 |52.
61 |42. 9 |33. 57 | |Interest Expense, Supplemental |28. 99 |24. 72 |26.
07 |22. 9 |22. | |Depreciation, Supplemental |137. 33 |129. 46 |118.
13 |109. 66 |109. 66 | | | | | | | | |Normalized EBITDA |611. 01 |687. 58 |580. 91 |497.
64 |405. 07 | |Normalized EBIT |472. 83 |557. 33 |462. 07 |387. 63 |294.
53 | |Normalized Income Before Tax |443. 91 |549. 2 |451. 58 |373. 5 |472.
15 | |Normalized Income After Taxes |282. 23 |351. 03 |287. 66 |260. 28 |304.
3 | |Normalized Income Available to Common |282. 23 |351. 03 |287. 66 |260. 28 |304.
3 | | | | | | | | |Basic Normalized EPS |2. 26 |2. 61 |2. 08 |1. 82 |2. 08 | |Diluted Normalized EPS |2.
23 |2. 54 |2. 4 |1. 79 |2. 05 | |Amortization of Intangibles |0.
85 |0. 79 |0. 72 |0. 36 |0. 89 | 8.
Statement of Policy: 1. No employee should have a conflict of interest. For example, no employee should have a financial interest in, or a loan from, one of our vendors. 2. No employee should work for one of our competitors, etc.
3. No employee should purchase merchandise or services directly from one of our vendors, suppliers, or contractors. 4. Employees may not process or authorize any transaction involving themselves, their family or any member of their household.This would include but is not limited to, sales, credits and any type of disbursements. 5.
Employees are not permitted to expend Company funds to make political contributions except with the express permission of the General Counsel. 6. Employees may not process or authorize any transaction involving themselves, their family or any member of their household. This would include but is not limited to, sales, credits and any type of disbursements 7. The managers must not use their Company position for personal gain such as by soliciting or accepting for personal benefit business opportunities that might otherwise accrue to the benefit of the Company.
8.They must respect the confidentiality of information acquired in the course of their duties except when authorized or otherwise legally obligated to disclose such information. Confidential information acquired in the course of their duties must not to be used for personal advantage. 9. They must not take any action to fraudulently influence, coerce, manipulate, or mislead any auditor engaged in the performance of an au 10.
They must promptly report code violations and suspected illegal, unethical or otherwise dishonest activities to the attention of the VP Internal Audit, CFO, CEO and Audit Committee of the Board of Directors. External Factors Analysis Summary: 1. Porter’s Model: 1. threat of new entry: low As there are high barriers of entry; which is good for the company. Tiffany ; Co.
as able to: • Gain economies of scale, and is focusing on differentiating its product. • Gain access to distribution channels. (It has 44 stores in the US and 82 international stores). • The fine jewelry industry requires large capital to buy raw materials and operate, especially to reach tiffany and compete with it. 2. Rivalry among existing firms: medium • The number of competitors in the same strategic group is low as there are only two competitors.
• The rate of industry growth is high as new trends are growing and entering the market such as bridal market is growing. • Exit barriers are high for example when buying a mine it will be hard to liquidate it. 3. threat of substitute products: mediumRoyal customers won’t find substitutes as it’s a luxurious product. But other customers are more likely to go for similar products that are lower in price and are offered by local established competitors.
4. bargaining power of buyers: low This is a luxurious product and has a brand name and so it is not price elastic. Tiffany ; Co. has developed lower costs Offered product lines of lower costs to be able to defend it from losing customers to substitute products. 5. Bargaining power of suppliers: medium In such industry it should be high as recourses are scares, but Tiffany has some how decreased it by integrating vertically and buying a mine in Canada.
2. Issue Priority Matrix: Probability of occurrenceHigh medium low |High |High |medium | |Aggressively growing competition | | | |High |Medium |Low | |H1N1 virus |Local established competitors | | |Medium |low |Low | 3. EFAS Matrix: Key External Factors |Weight |Rating |Weighted Score |Comments | |Opportunities | |1. expanding internationally |0. 10 |5 |0.
5 |Tiffany opened company operated stores in China, Canada and Brazil. | |2. China entering the World Trade Organization. |0. 05 |4 |0.
2 |Opening a company operated store in China | |3. low-cost production of custom work ; fine craftsmanship in|0. 10 |4 |0. |Opening a company operated store in China | |China, | | | | | |4. Growing fine jewelry industry in Brazil due to lower |0. 10 |4 |0.
4 |Opening a company operated store in San Paolo. | |design ; operation cost. | | | | | |5. growing popularity of diamonds |0. 10 |5 |0. |Opening a factory and buying a mine in Canada.
| |6. New market trends and a growing trend in bridal market. |0. 15 |5 |0. 75 |Developed products desired by its target market.
| |7. Men becoming more involved in shopping. |0. 025 |2 |0. 05 |They offered them products but not much.
| |8. Internet and e-marketing |0. 05 |4 |0. 2 |As women entering the work force had no time to go shopping, tiffany | | | | | |developed online shopping. | |9.Baby boomers are now in the age of 40 to 50 |0.
05 |4 |0. 2 |Offered them fine jewelry items and diversified products. | |Threats | |1. Competition is growing aggressively. |0. 095 |4 |0.
2 |Expanding And trying to develop differentiation strategy | |2. Economic resection post 11 September. |0. 01 |1 |0. 01 | | |3. The SARS epidemic spreading in China.
|0. 01 |1 |0. 1 | | |4. H1N1 virus is now spreading globally. |0. 01 |1 |0.
01 | | |5. Economic financial crises |0. 05 |1 |0. 05 | | |6. local established competitors abroad |0.
10 |5 |0. 5 |Win them as distributers. | |Total |1. 00 | |3. 8 | | 4. Industry matrix: |Strategic factor |Weight |Tiffany ; Co.
|David Yurman |Harry Winston | | | |rating |Weighted score |rating |Weighted score |rating |Weighted score | |Craftsmanship |0. 20 |4 |0. 8 |3 |0. 6 |3 |0. 6 | |Value |0.
20 |4 |0. 8 |3 |0. 6 |4 |0. 8 | |Price |0. 10 |4 |0.
|2 |0. 2 |3 |0. 3 | |Brand |0. 20 |4 |0. 8 |2 |0. 4 |3 |0.
6 | |Distribution |0. 10 |5 |0. 4 |2 | |STRENGTHS | | |Tiffany ; Co leadership and staff understand the company culture , mission and |0. 15 |4 |1. 0 |Quality key to | |considered one of its major assets | | | |success | |2- Tiffany ; Co sales is increasing every year |0. 15 |4 |1.
00 |Brand awareness | | 3- Experienced top management |0. 10 |4 |0. 0 |know appliance | |Brand name is strong and well positioned |0. 10 |4 |0. 60 |Advertising, | | | | | |Outgoing and TV. | |Tiffany ; Co has strong financial position |0.
15 |4 |1. 00 |Greater percentage | | | | |Of annual sale | | | | |WEAKNESSES | | |Tiffany ; Co sells most of its products in countries which was impacted by the |0. 05 |1 |0. 03 |Global economy | |global crisis | | | | | |Tiffany ; Co market share was affected due to the aggressive competition |0. 02 |2 |0.
4 |Aggressive | | | | | |Marketing plan | | | | | |To enhance | | | | | |Product. | |Government affect the company operations due to high taxes |0. 5 | | |agg | | | |3 |0. 12 |laws and | | | | | |regulations | |Tiffany ; Co epend on precious stones in it business which are always |0. 02 |1 |0.
01 |Inexpensive | |expensive and decreasing in many countries | | | | | |The company relies on few well experienced staff in R;D, and doesn’t have |0. 11 |3 |0. 16 |There is no | |enough future staff. | | |Training courses | | | | | |For staff | |Total |1. 00 | |4. 24 | | COMMENT:The INTERNAL FACTOR ANALYSIS SUMMARY summarizes and evaluates the major strengths and weaknesses in the functional areas of business and it also provides a basis for identifying and evaluating relationships among those areas.
The total weighted score of 4,24 indicates that the Company is above average in its overall internal strength. III. IV. Strategic Factors Analysis Summary: | | | | |Duration | | |Key Strategic Factors |Weight |Rating |Weighted Score | |Comments | | | | | |S I L | | |1.Tiffany ; Co leadership and staff | | | | | | |Make for them a meeting every | |understand the company culture , mission and | | | | | | |month to know the latest news | |considered one of its major assets (S1) |0.
15 |4 |0. 7 | |X | |about the company | | | | | | | | | | |2. Tiffany ; Co sales is increasing every | | | | | | |Make a long term innovation to be | |year (S2) |0. 15 |4 |1. 00 | | |X |in the same level.
| |3.Tiffany ; Co has strong financial position | | | | | | |make more investment to increase | |(S6) |0. 15 |4 |0. 5 | |X | |the profit | |4. Tiffany ; Co sells most of its products in| | | | | | |It should retrench from those | |countries which was impacted by the global | | | |X | | |branches or to lower their cost | |economic crisis. (W1) |0.
05 |1 |0. 3 | | | | | |5. Government laws and regulation affect the | | | | | | |It should increase its investment | |company operations due to high taxes. (W3) | | | | | |X |to overcome the high cost of the | | |0. 05 |3 |0.
12 | | | |taxes | |6. The company relies on few well experienced| | | | | |It should hire experienced | |staff in R;D, and doesn’t have enough future | | | |X |X | |employees for R;D because it is | |staff. (W6) |0. 10 |3 |0. 15 | | | |the way to success. | | | | | | | | | | |7.
Expanding internationally. (O1) | | | | | | |Try to open another stores in more| | |0. 10 |5 |0. | | |X |than one place ; to make | | | | | | | | |international products | | | | | | | | | | |8. Growing popularity of diamonds. (O5) | | | | | | |Make much more designs for | | |0.
10 |5 |0. 5 |X | | |diamonds | | | | | | | | |Make new products to suit this | |9.New market trends and a growing trend in | | | | |X |X |target. | |bridal market. (O6) |0.
15 |5 |0. 75 | | | | | |10. Local established competitors abroad. | | | | | | |Try to open in new markets | |(T6) |0. 8 |5 |0. 5 | | |X | | |11.
Economic financial crises. T5) | | | | | | |Try to lower the cost in this | | | | | | | | |countries | | |0. 05 |1 |0. 05 | |X |X | | |12. Competition is growing aggressively. | | | | | | |Develop global strategies ; | |(T1) |0. 05 |4 |0. | |X |X |develop global designs. | | | | | | | | | | |TOTAL |1. 00 | |5. 00 | | | | | 1. TWOS Matrix: | |Strengths |Weaknesses | | |1.Tiffany ; Co leadership and staff understand the company |1. Tiffany ; Co sells most of its products in | | |culture , mission and considered one of its major assets |countries which was impacted by the global economic | | |2. Tiffany ; Co sales is increasing every year |crisis | | |3. Tiffany ; Co has strong financial position |2. Tiffany ; Co market share was affected due to the| | |4.Brand name is strong and well positioned |aggressive competition | | |5. Tiffany ; Co always has new product designs according to top |3. Government laws and regulation affect the company| | |fashion and different customers expectations all over the world |operations due to high taxes | | | |4. Tiffany ; Co depend on precious stones in it | | |6. Tiffany ; Co is engaged in product design, manufacturing and |business which are always expensive and decreasing | | |retailing activities. in many countries | | | |5. Some product of the Company is not achieving good| | | |profits or have flat profits. | | | |6. The company relies on few well experienced staff | | | |in R;D, and doesn’t have enough future staff. |Opportunities |(SO) strategies |(WO) strategies | |1. Expanding internationally |1. ( S1,O9) |1. (S1,O1,O2) | |2. China entering the World Trade |It is an opportunity for the company to send some experienced |It could retrench from the places which has economic| |Organization. |staff to brazil to increase the quality of the designs with no |crisis ; open in new countries as china | |3. low-cost production of custom work ; fine|cost. |2. (S2, O4,O5) | |craftsmanship in China, |2. S2,O3,O4) |The company should increase the collection because | |4. Baby boomers are now in the age of 40 to |This could be used to increase the sale much more. |of the baby boomers ; should also make its target | |50 |3. (S3,S4,O1,O8,O2) |the bridal products. | |5. growing popularity of diamonds |The company has the ability to expand more because of its good |3. (S3, O8) | |6. New market trends and a growing trend in |financial position ; the well known brand name. It should take advantage of this by opening some | |bridal market. |4. (S5,S6,O5,O7,O6) |branches on the internet with less cost | |7. Men becoming more involved in shopping. |Since that tiffany make every now ; then new designs, so it |4. (S4,O7) | |8. Internet and e-marketing |could develop in new markets as men ; bridal targeting. It also |It should target the men products because they are | |9. Growing fine jewelry industry in Brazil |should innovate the diamond products. |less cost ; don’t need stones. | |due to lower design ; operation cost. |5. (S5,O6) | | | |It should remove some products ; began to look for | | | |the diamond products. | |Threats |ST strategies |WT strategies | |1. Competition is growing aggressively. |1. (T1,S1,S4) |1. W2,T2) | |expanding internationally |Due to the good staff ; the well known brand, the company could |The company will make retrenchment in some of its | |2. Economic resection post 11 September. |be to open in any where |branches | |3. The SARS epidemic spreading in China. |2. (T2,T5, S3) | | |4. local established competitors abroad |The company has the ability to overcome this crisis due to its | | |5. Economic financial crises |strong financial position. | |6. H1N1 virus is now spreading globally. |3. (T3,T6, S2, S3) | | | |The company couldn’t open there or to give infections to all the| | | |staff working in those countries. | | | | | | 2. PORTER’S GENERIC STRATEGY: |LOWER COST |DIFFERENTATION | |BROAD | | | |TARGET | | | |NARROW | | | |TARGET | |FINE JEWLERY |Comment: tiffany ; co is found in the differentiation focus strategy which it concentrate on a particular buyer group who are women which are very classy ; ages 30 to 60, the line segment in the fine jewelry. [pic] Comment: 1. Star: tiffany ; co is the market leader in the fine jewelry ; it is able to generate enough cash to maintain their high market share. 2. Question mark: tiffany ; co has made new products which are the silverware ; fragrances ; they need a lot of cash for development. 3. Cash Cows: tiffany ; co has two products which are the stationary ; timepieces. These products collect a lot of cash but their market share need to be maintained. 4. Dogs: tiffany ; co also has another two products in this stage which are the chinaware ; crystals so heir market share is very low ; they don’t gain much more money. Evaluation: Tiffany ; Co. (Tiffany) with its principal subsidiary, Tiffany and Company (Tiffany), as well as with other subsidiaries is engaged in designing, manufacturing and retailing activities of a broad range of jewelry items. Tiffany is a jeweler and specialty retailer which also sells timepieces, sterling silverware, crystal, stationery, fragrances and accessories. It operates principally in the U. S. and Japan. The fragrance products of the company are sold under the trademarks of Tiffany, Pure Tiffany and Tiffany for Men. It also markets other brands of timepieces and tableware in its US stores.The company operates through three divisions which include International Retail division, U. S. [pic] ———————– Impact High Medium Low Tiffany & Co. David Yurman Harry Winston High price Low Local manufacturers Tiffany & co financial Geaographic region operation Man. & design technology Ads. Sales& distribution customers products In-House Digner Domestic Print Fine jewerly Retail Stores gender Rigns Earring Bracalets Precious Diamond brooches International Out source TV Catalog Outdoor Internet Age Matures Baby boomers. Generation x Generation y Time pieces Watch Clocks stationery High income chinaware crystal fragrance Sterling Silverware
