Chapter 2. Strategic Planning for Competitive Advantage

Tiffany & Co is one of the finest jewelry retailers which has a 175-year history and tradition. Nowadays, Tiffany operates more than 250 stores and boutiques world widely, and it serves its customers with pride and excellence. A great success that the company achieved over the years of existence is connected to a skillful and well though out strategic planning.

SWOT Analysis:

Strengths: Tiffany & Co has a strong direct selling strategy. It has developed several direct distribution channels which are direct sales in Tiffany stores and boutiques, online and catalog sales. Tiffany offers a wide variety of products which meets a wide range of customer needs. Besides jewelry, the company offers products such as timepieces, china, sterling silverware, crystal, stationery, fragrances and accessories. Tiffany has earned a strong brand name in the fine jewelry market that gives the company a great reputation. Strong balance sheet gives Tiffany an opportunity to increase its offerings and expand geographic coverage.

Weaknesses: The fact that the company's main customers are upper and upper-middle class is highly dependable on economic status. If a recession occurs, the company will incur significant losses.

Opportunities: Tiffany is constantly working on expansion strategy. Since 2007 the company has opened new stores in locations such as Japan, Korea, New Jersey, Hong Kong, Las Vegas etc. New stores will develop the company's geographic radius and boost its market scene.
Also, online shopping became very popular that benefits Tiffany in sales growth tremendously. Besides its convenience for customers, online shopping enhances the company's margins by cutting down its operating expenses.
Growth in men's market gives to Tiffany new opportunities to grow. Tiffany & Co. designs new products for men such as men's jewelry and accessories that is expected to boost the company's revenues.

Threats: Because of counterfeit goods appearance, Tiffany stands to lose its brand equity. Also, it may create customers complaints that will harm the company's image.