Tiffany & Co. is a retailer, designer, manufacturer, and distributor of luxury fine jewelry. As of January 31st, 2003, they had 44 company-operated stores within US borders and 82 company-operated stores internationally. Fine jewelry makes up 79% of their net sales followed by other products such as timepieces, stationery, and sterling silverware. Michael J. Kowalski, Tiffany & Co.’s current CEO, has the same mission the company had when it first started in 1837: to be the world’s premier luxury brand of fine jewelry as well as America’s house of design.
S.W.O.T. Tiffany & Co. has done an outstanding job in developing a strong brand name, which represents nothing but the best, most durable, and most luxurious jewelry. Part of their strong reputation can be accredited to their company-operated stores, which quickly differentiate Tiffany & Co. from competitors who sell their products through other distributors. The company-operated stores strengthen the brand name even more by physically isolating Tiffany’s name and its products, giving them a prestigious image. Tiffany & Co.’s advertising campaigns have done a good job in targeting their ideal upper to middle class customer. Their ads have been strategically placed in newspapers such as The New York Times and The Chicago Tribune, and in magazines such as New Yorker, which tend to be read by a well educated, upper class group. Tiffany’s collections which range in both style and price, combined with their impressively efficient inventory, have kept customers happy for decades. Tiffany & Co.’s well trained employees have been able to form relationships with their customers are another reason why the company has many returning customers. Tiffany exhibits several weaknesses that are hurting net sales. Most importantly, their international stores have not been bringing in nearly as much revenue as company executives had once predicted. The number of international