Tiffany Analisis
Strategic Report for Tiffany & Company
Harkness Consulting
Innovation through Collaboration
Jenn Wilcox Scott Damassa Zeeshan Hyder April 14, 2007
Table of Contents
Executive Summary ………………………………………….. 3 Company History ……………………………………………… 5 Competitive Analysis ………………………………………… 9
Internal Rivalry ………………………………………………….... 9 Entry ……………………………………………………………….... 12 Substitutes and Complements ………………………………. 12 Supplier Power …………………………………………………... 13 Buyer Power ………………………………………................... 15
SWOT Analysis ……………………………………………… 15 Financial Analysis …………………………………………… 17 Strategic Issues and Recommendations ……………. 20 References …………………………………………………… 25
Harkness Consulting
2
Executive Summary
Throughout its history, Tiffany & Co has been a luxury jewelry brand associated with romance, quality, and style. Originally gaining fame as a silversmith and later for its association with engagement rings and diamonds, Tiffany & Co now reaches a wide market through its sale of high-end jewelry, watches and glassware. Tiffany’s has grown steadily alongside the American economy and expanded across the United States and into South America, Europe, Asia and Australia. The firm offers a wide array of price points in its pieces, from sterling silver items under $100 to quarter of a million dollar signature pieces covered in diamonds and other gems. Tiffany & Co sells jewelry under its own name as well as featuring collections designed by famous artists such as Elsa Peretti, Frank Gerry, and Paloma Picasso. The firm has traditionally found success in the diamond engagement ring industry, statement jewelry, and sterling silver items. The industry is characterized as notoriously “tight-lipped,” where consumers are buying both a piece of jewelry along with its associated status and brand recognition. The supplier power on DeBeers and others is critical to shaping the industry’s dynamics and future. In an industry characterized by private labels and almost
Harkness Consulting
Innovation through Collaboration
Jenn Wilcox Scott Damassa Zeeshan Hyder April 14, 2007
Table of Contents
Executive Summary ………………………………………….. 3 Company History ……………………………………………… 5 Competitive Analysis ………………………………………… 9
Internal Rivalry ………………………………………………….... 9 Entry ……………………………………………………………….... 12 Substitutes and Complements ………………………………. 12 Supplier Power …………………………………………………... 13 Buyer Power ………………………………………................... 15
SWOT Analysis ……………………………………………… 15 Financial Analysis …………………………………………… 17 Strategic Issues and Recommendations ……………. 20 References …………………………………………………… 25
Harkness Consulting
2
Executive Summary
Throughout its history, Tiffany & Co has been a luxury jewelry brand associated with romance, quality, and style. Originally gaining fame as a silversmith and later for its association with engagement rings and diamonds, Tiffany & Co now reaches a wide market through its sale of high-end jewelry, watches and glassware. Tiffany’s has grown steadily alongside the American economy and expanded across the United States and into South America, Europe, Asia and Australia. The firm offers a wide array of price points in its pieces, from sterling silver items under $100 to quarter of a million dollar signature pieces covered in diamonds and other gems. Tiffany & Co sells jewelry under its own name as well as featuring collections designed by famous artists such as Elsa Peretti, Frank Gerry, and Paloma Picasso. The firm has traditionally found success in the diamond engagement ring industry, statement jewelry, and sterling silver items. The industry is characterized as notoriously “tight-lipped,” where consumers are buying both a piece of jewelry along with its associated status and brand recognition. The supplier power on DeBeers and others is critical to shaping the industry’s dynamics and future. In an industry characterized by private labels and almost
References: Tiffany.com “History & Timeline.” Tiffany.com “History & Timeline.” iii Tiffany.com “History & Timeline.” iv Tiffany.com “History & Timeline.” v Tiffany.com “History & Timeline.” vi Tiffany.com “History & Timeline.” vii Tiffany & Co 10K 2007. viii Phone interview with Jeanie Joas, CEO of JB Hudson. April 1, 2007. ix Tiffany & Co. Fourth Quarter and Full Year 2007 Results Conference Call. 24 Mar 2008. 8:30 AM ET. x Tiffany & Co. Fourth Quarter and Full Year 2007 Results Conference Call. 24 Mar 2008. 8:30 AM ET. xi Tiffany & Co. Fourth Quarter and Full Year 2007 Results Conference Call. 24 Mar 2008. 8:30 AM ET. xii JPM Securities Tiffany & Co Analyst Report. March 25, 2008. xiii Merrill Lynch Luxury Goods & Lifestyle Update N 223, March 28, 2008. xiv Tiffany & Co 10K 2007. xv Tiffany & Co 10K 2007. xvi Tiffany & Co 10K 2007. xvii JPM Securities Tiffany & Co Analyst Report. March 25, 2008. xviii Merrill Lynch Luxury Goods & Lifestyle Update N 223, March 28, 2008. xix JPM Securities Tiffany & Co Analyst Report. March 25, 2008. xx Tiffany & Co. Fourth Quarter and Full Year 2007 Results Conference Call. 24 Mar 2008. 8:30 AM ET. xxi Tiffany 10K 2007. xxii Phone interview with Jeanie Joas, CEO of JB Hudson. April 1, 2007. xxiii JMP Securities, Lifestyle Retailing and Products Update. Tiffany & Co, March 25, 2008. xxiv Merrill Lynch, Earnings Review Tiffany & Co. 24 March, 2008. i ii Harkness Consulting 25