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Tiffany & Co

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Tiffany & Co
I. EXTERNAL ENVIRONMENT

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)

2. Political-Legal
• 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
a)Consumers
3. Threat of Substitute Products: HIGH
a)Costume jewelry & cheap jewelry
4. Bargaining Power of Suppliers:

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