Sunday, March 3, 2013

Chapter 5. Developing a Global Vision

Since the moment of Tiffany's creation, the company expanded drastically not only in the territory of the United States, but globally also. Only in 2012 Tiffany & Co opened 25 stores: 11 stores in the Americas, 6 stores in Asia Pasific, 1 store in Japan, 2 stores in Europe and 5 stores in Emerging Markets. Besides operating retail stores and boutiques, it engages in direct selling through Internet, catalog and business gift operations, which contributes to the market expansion significantly.
Producing exclusive product such as diamond rings, Tiffany & Co. has a high degree of global standardization. Tiffany's authentic designs are recognizable around the world. 

Being a high-end company, Tiffany & Co. is always aware of economic development of the country where it is planning to open a new store. As a sophisticated industry, the company picks locations, which are expected to have a good purchasing power. It means that all Tiffany's stores are located in the well-developed countries where customers can afford to spend money on luxurious product.

On January 19, 2012 Tiffany & Co. announced that it entered into a strategic joint venture with Damas Jewellery, a company located in Dubai, the United Arab Emirates. Damas Jewellery was previously related to Tiffany & Co. in operating Tiffany’s retail stores. Now both companies are contributing capital to the joint venture. As Frederick Cumenal, executive vice president, said, "We are very pleased to extend our relationship with Damas Jewellery through this joint venture, which will enable us to better integrate five existing TIFFANY & CO. stores into our worldwide store network and enhance awareness of our brand in the United Arab Emirates. We see very exciting opportunities to expand our sales throughout this important region."

Another attempt to expand its market, Tiffany & Co. had with the world’s largest watch maker, Swatch, in 2007 which did not go well. For Tiffany & Co. it was a strategy to distribute Tiffany’s brand watches around the world. In September 2011 the deal was eliminated which caused some legal issues between the two companies.  

Tiffany & Co. distributes its product only in its own stores. The company has fixed prices on its products, which you would never buy on sale.

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