Brief Summary of the company
The company was founded in the year 1837 by Charles Lewis Tiffany and his colleague who was a schoolmate. Tiffany & co. has been known for long for its luxury and quality goods. They best mostly on jewelry, sorting itself to have a taste and style to their customers. The selling occurs in different method including; direct selling and online selling. The company is located on Broadway that is directly opposite Manhattan’s City Hall Park. In the year 1845, a third party was incorporated in the system thus the name of the company changed to Tiffany, Young & Ellis. The store became so successful in this year and they discontinued costume jewelry and began to sell real jewelry and stationery. In the year 1847, Silverware was introduced in their stores and other products like clocks, watches, numerous choices of ornaments and bronzes (Altmayer 1958: 142). The introduction of the third party was a benefit to the organization because his capital was used to open a branch in Paris and when the French monarchy was later overthrown, Young bought some of the crown jewels in the year 1848.
In 1852, he introduced sterling silvers in the company and in the year 1853, he decided to buy off his partners and the company name changed to Tiffany & Co. In the year 1878, the company won a gold medal during the exposition in Paris thus they were recognized as the best jewelry company. The company later moved to Caribbean market in the year 2001 and during this year, it managed to acquire 45% stake in Little Switzerland. In the next consecutive years, the company managed to open other two branches in California and in New Jersey respectively. In 2004, ten other stores were opened in Japan, Taipei, Shanghai, US and London. In the year 2006, the company was in the plan for stockholder rights and there was speculation that the company could be sold in the near future (Auctions 1997:132).
The strategic marketing plan will base on the mission statement of the company, its vision, and the core values of Tiffany & Co. It will go ahead and evaluate the environmental factors and here it includes; the SWOT analysis (strength, and weaknesses; Opportunities and threats) that face the company in its daily operations. The Internal analysis will be so systematic in highlighting the companies qualities and quantity of the various departments, identifying each functional tasks and value activities Tiffany & Co. is supposed to be doing assessing its actual operations against this framework. Opportunities and threats will be generated by evaluating external forces. It will entail collecting information about forces in the marketing environment that will help detect changes that may either produce reward or prevent the company from reaching its objectives. The report will later outline the strategic options and choices, set goals and objectives, develop strategies and game plan with which to reach goals and objectives, suggest tactics and market implementation, evaluation, and controls of the result of this plan to be done (Drummond 2007:57).
To be the preferred and profitable company in making quality and customer made items that will be desired by all the customers who sought luxury from the items they buy (Booz 1998: 97).
To bring beauty into lives by providing the best quality on our products through innovative and cost effective business practice and mutually beneficial partnerships with employers and suppliers thereby delighting our customers while caring for the community and environment which we operate (Durkin 2005:94)
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- Competition- to always be ahead of our competitors producing innovative cutting edge new products and services while adhering to ethical competitive practices and procedures
- Integrity and Ethics- To always abide by the roles and laws of the country of operation by practicing modern and acceptable management activities at all time. Customer Satisfaction- To always ensure high quality provision of services to our customers that not only meet their need but also provide an element of satisfaction
- Trust need to be developed between the company and its custom’s to ensure maximum online shopping. This will not only increase sale but reduce on the cost of production because there are no transportations involved.
- Employee Welfare- To ensure that employees are competitively remunerated rewarded and recognized and above all subjected to continuous training in order to boost their skills and knowledge hence delivery of efficient on professional services to our customers.
- Social responsibility- being in the front line in establishing initiatives at community level to tackle society problems and providing realistic and sensible solutions now and in the future.
- Productivity- To engage in modern technology in production process aimed at cutting down cash and promoting efficiency and quality
- Customer Service Standards- To ensure that all the services produced are customer focused. This will increase focus on retail standards in high street business that will be translated into improvements in mystery shopper scores and a reduction in the number of customer contacts into central customer service center.
- Raise awareness on values- To focus on helping staffs understand what the values mean and how to apply them in their role.
- Accountability- To ensure that everyone is accountable in whatever one is doing. This will reduce careless work and production of high quality products.
- Drive for result- Being optimistic of the results. This value will drive employees to be motivated to achieve the set goals of the organization
The issues within a firm’s environment can be analyzed from two perspectives:
a) Internal Environmental Issues: Potential Strengths and Weaknesses
The key internal factors are firm’s basic capabilities limitations and characteristics. Therefore, company profile should access the strength and weaknesses of the company’s management, organizational capabilities. A factor is considered strength if it’s a distinctive competence or key success factors while weakness is a critical market performance variable that an organization lacks (Haig 2006: 89).
Tiffany and Co. has acquired a strong brand name. This has made them attain a competitive advantage over the other competitors in the same industry. This strong brand name has acquired a strong customer relation. They have ensured quality and durable production of their items and maintained a distinctive and high quality packaging (Hargraves 1990: 264).
They have product differentiation through new venture of products and have a signature in all their products. This not only ensures quality of the products but also protects customers from imitations in the market. Diversification has assisted them to grow and remain buoyant in the market even when they are in low seasons. There has been recorded increased number of unemployment in India and this has really affected the sales of Tiffany & Co.
Tiffany & Co. have a strong distribution channel in most of the towns. They have merged this with knowledgeable sales staffs that attend to customers in a very professional way and have upscale store location. The company has distributed store allover including; Caribbean, Switzerland, USA, California, New Jersey, India, Japan, Taipei, Shangai, and London. There is good inventory management. This is done both online and using stationeries to assist for backup. Distribution channel has been important because it has assisted in increasing sales in that, potential customers can quickly access the products without much struggle.
Being the pioneer of online shopping, they stand out as the best company in online shopping and social media. Though other companiies in the same industry like; Chopard, Cartier and Bulgari are also coming up in online shopping, Tiffany & Co. still stands out as the best due to its experience. Tiffany & Co. have an in-house manufacturing and design factory that performs diamond cutting and cooperates with Aber resources. The diamond cutting is based in India and is the best recognized company recognized world wide. This is a plus to the Tiffany & Co. when the plant is based in India as it just makes them to emerge as the best.
The company also has strong financial strengths. They open at least four branches every financial year in different countries. This shows that the company is financially stable and is so independent (Loring 1997: 62). In India, at least every year they open one distribution channel. Due to stable position of capital in the organization has made them to have a competitive advantage over other competitors in the market. The nature of the products that are provided by the company cannot be easily be imitated. The products also are durable and long lasting and this allows the company to extend the online marketing as the products can be shipped from one country to the other.
Despite its strengths in the market, Indian market has had some bottlenecks that need to be nailed out. Tiffany & Co. do not participate in sales promotions. This reduces the awareness that it might have created if it had participated.
The company also is in its maturity stage and from the normal curve; it implies that the company may start to decline in the near future. This will therefore give an opportunity to other competitors in the industry to grow. There are speculations that the company may be sold in the near future (Loring 2002: 287). From the last year’s financial analysis, India have fluctuated in sales and this are signs that they are nearing the decline stage. The company is prone to high risk of losses as the organization is not insured from wars in that country. This reduces the chances of retail extension as much as there is high opportunity of sales.
b) External Environmental Issues: Opportunities and Threats
The external environment generates the opportunities and threats variables that indicate the positive and negative forces, facing the firm respectively. An appropriate framework that can help in identifying opportunities and threats is by classifying the external environment from the context of the proximity to the firm. The nearer the external environment of aspect, the more control the firm has over it and hence able to proactively deal with. Using this context, the external environment can be classified as;
1) Remote Environment:
This comprises factors that originate beyond and usually irrespective of any single firms operating situation. These include; (PESTEL); Political, Economical, Social- cultural factors, Technological, Ecological and Legal.
These are governmental issues that mostly affect a company that has invested in a particular country. In India the governmental policies are so intense yet lenient.
There is economic liberation in India and this has assisted the market grow very fast compared to other countries. There is also a strong democratic set – up thus favoring the Tiffany & Co. market in India. The country has a stable macro – economic policies.
The Indian market has a difference between their region and their culture. This has widely affected the politics in the country because these differences in most cases results to war hence affecting the market. Because the diamond cutting is done in India, this difference affects the whole organization as the production process is interfered with.
The Indian government has low barriers to entry in the international market. This has rapidly attracted competitors in the market hence bringing down the targeted profits. This has also affected the access of infrastructure hence less distribution channels have been opened in the area (Marca 2008:721).
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