Tiffany & Co

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A.Societal Environment

1. Economy
•Low-negative growth in economy/financial markets (T)
•Reduced discretionary spending on goods that are, or are perceived to be, luxuries (T) •Unsettled regional/global conflicts e.g. military and/or terrorist activities (T) •Weak economic conditions in Japan (T)

•Global competition (T)
•Wholesale market for high quality cut diamonds will provide continuity of supply and pricing (O) •Soft employment market (T)
•Post September 11th recession/reduced tourism (T)
•Increase in 2-income families (O)
•Number of families w/ household incomes over $100,000 to grow by 20% (O) •Low cost manufacturing abroad – China, Brazil (O)
•High discretionary income of baby-boomers through credit card use (O)

2. Technology
•Increased availability of Internet (O)
•Increased use of E-Commerce (O)
•New QAD & MFG/PRO software to collect real-time data (O)

•Increase in free trade (O/T)
•China's membership to WTO (O)
•WTO – World Trade Organization (O/T)
•Tax benefits associated w/ ETI (O)
•Government rules/regulations (O/T)
4. Socio- Cultural
•Growth of seniors market-over 80 million baby boomers in U.S (O) •Baby boomers focused on luxury, travel, and leisure (O)
•Trend young males 18-34 marrying later; participate in bridal/baby registry (O) •More women entering workforce (O)
•Matures, by 2015, 15% of population (O)
•60 million Generation Y consumers – bridal market boom (O) •bridal market boom (O)
•Gen X and Gen Y focus on fashionable, trendy items (O)
•Trend in high-end luxury brands desired by Chinese (O)
•Consumer purchasing power and preferences (O/T)
•Increase or frequency of tourist travel (O)

B. Task Environment
1.Threat of New Entrants: LOW
a.) Market maturity
2.Bargaining Power of Buyers: LOW
3.Threat of Substitute Products: HIGH
a)Costume jewelry & cheap jewelry
4.Bargaining Power of Suppliers: MEDIUM
a)Diamond mines
b)New TIFFANY MARKTM watch parts purchased from single
c)Numerous alternative sources for gems/precious metals;
loss of any single supplier would not have material
adverse effect on operations
5.Rivalry Among Competing Firms: HIGH
b)Harry Winston
c)David Yurman
d)Oriental Gem House
e)General retail stores
f)Imitators and Counterfeiters
6.Power of Other Stakeholders: LOW - Shareholders
7.Industry globalization (O)(T)
8.Overseas potential in China, Brazil and Canada (O)
9.Emphasis on quality, durability, and value (O)
10.Focus on specialization (O)
11.Dept. store specialty boutiques to decline (O)
12.Highly fragmented industry (O)
13.Growing popularity of diamonds (O)
14.Fine jewelry sales up 0.7% over 2001 (O)
15.1/2 of U.S. households bought jewelry in 2002; 39% bought fine jewelry (O) 16.Purchase motivators: buying things that lasted & emotional fulfillment (O)
17.Convenience trend influencing customer purchases (O)


A.Corporate Structure
1.Stage II/III Corporation – growth/maturity
2.Stage 3 of international development
3.4 Business Segments: U.S. Retail, International Retail, Direct Marketing, Specialty Retail

B.Corporate Culture

1.Commitment to proven, disciplined approach to long-term development
2.Commitment to high level of quality, value, craftsmanship, durability, and innovation
3.Emphasis on superb customer service
4.Promotion from within
5.Adhering to highest ethical standards of business conduct 6.Uncompromising commitment to product/service excellence
7.Responsibility to support communities

B.Corporate Resources

1. Marketing
•44 U.S. stores; 82 international stores, also sold online & via catalog (S) •Positive signature brand image – "Tiffany Blue";" Tiffany Solitaire" (S) •Strong customer relations; memorable shopping experiences (S) •Effective in catering to Matures, Baby...
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