SWOT Analysis
Ownership
Structure & Revenue STRENGTHS Tiffany is the parent of Tiffany and Company that sells fine jewelry and other items that it manufactures or gets manufactured by others to its specifications. The company operates in the American, European and Asia-Pacific regions. Tiffany’s stores are located strategically based on the demographics of the area to be served, consumer demand, and the proximity of other luxury brands and existing company locations.
Strong brand recognition
In 2014, Tiffany recorded revenues of $4,031.1 million, an increase of 6.2% over fiscal year 2013. For FY2014, the Americas, the company’s largest geographic market, accounted for 47.8% of the total revenues. The company has organized its operations into five segments, based on geographic presence. However, the company has also provided a break-up of revenues by product categories. Tiffany generates revenues through four product categories: fashion jewelry (39.8% of the total revenues in FY2014), engagement jewelry and wedding bands (29.3%), statement, fine and solitaire jewelry (23.1%) and all other (7.8%).
Average price of products is low
Strong sourcing and manufacturing capabilities Brand name synonymous with high quality Strong presence in the direct selling channel increases potential customer base
WEAKNESSES Declining profitability Distilled brand image
Future
Growth Plans
OPPORTUNITIES
Increasing presence in the fast growing Asian luxury market, especially China As part of Tiffany’s long-term strategy to expand its store locations, management plans to add approximately 12 -15, Company-operated stores in 2015, with the majority of expansion planned in Asia-Pacific and the remaining in the Americas and Europe. The Company currently operates e-commerce enabled websites in 13 countries as well as informational websites in several additional countries. The Company invests in continuing website enhancements and intends to evaluate expanding its e-commerce sites to additional countries in the future.
10 Company Overview
Low digital competency
Positive outlook for the global retail industry Implementation of in-store technology to drive digital competency
THREATS Increased counterfeit crime will hurt brand image and will convert into losses Intense competition pressurizes margins Increased labor wages in the US Company Overview 11