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Tiffany Strategy Presentation

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Tiffany Strategy Class project company strategy

  • Dear Caamch, I am researching on Tiffany's Supply Chain Management for my paper and came accross your presentation. It is really helpful indeed, however having a list references would allow me to expand my research beyond my own findings. Do you still have this in your records? If you have any questions, please email me. Many thanks, Kristina
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Tiffany Strategy Presentation

  1. 1. Tiffany & Co. Susan Tartara, Christina Caamano, Sara Birnbaum, Corinne White MBAe 2010-2 Business Strategy Analysis
  2. 2. <ul><li>Agenda </li></ul><ul><li>Environmental Analysis </li></ul><ul><li>Strategies </li></ul><ul><li>Corporate Governance </li></ul><ul><li>Organization </li></ul><ul><li>Leadership </li></ul><ul><li>Entrepreneurship </li></ul><ul><li>S-Curve </li></ul><ul><li>Discussion </li></ul>
  3. 3. People, Philosophy, Personality Internal Environment <ul><li>Customer Service Orientated </li></ul><ul><li>Greater than normal Training for sales representatives </li></ul><ul><li>Dedicated to the “Tiffany Experience” </li></ul><ul><li>Brand Loyalty is sustainable </li></ul>
  4. 4. Competencies Internal Environment <ul><li>Customer Service </li></ul><ul><li>Design and Innovation </li></ul><ul><li>Marketing and Brand Maintenance </li></ul><ul><li>Quality and Craftsmanship </li></ul>
  5. 5. Resources Internal Environment <ul><li>Sourcing Socially Responsible Materials </li></ul><ul><li>Access to excellent talent </li></ul><ul><li>Design </li></ul><ul><li>Marketing </li></ul>
  6. 6. SWOT Analysis Strengths Brand Financials Quality Control Distribution Control Internet Shopping Embraced Weaknesses Mature in Industry Lifecycle Commodity Prices Recessions Reduced Discretionary Spending Dependence on stores Opportunities New Target Markets Online Market Revamp Advertising Socially Responsible Mining Vertical Integration Product Differentiation Innovation Threats Rivalry Cheaper Products Comparable Products Online Retailers Low switching costs
  7. 7. Value Chain Analysis
  8. 8. Value Chain of Tiffany Co <ul><li>In Bound Logistics- Warehousing of raw materials and the distribution to their manufactures </li></ul><ul><li>Operations- transforming inputs into finished products </li></ul><ul><li>Outbound Logistics- Warehousing for finished products </li></ul><ul><li>Marketing and Sales- customer needs </li></ul><ul><li>Service- Support after sale </li></ul>
  9. 9. Support for the Value Chain <ul><li>Infrastructure of the firm - Organizational structure, company culture, control systems </li></ul><ul><li>HR Management- Employee recruiting, compensation, training </li></ul><ul><li>Technology Development - Value creating services </li></ul><ul><li>Procurement- Raw materials, equipment </li></ul>
  10. 10. Cost Advantage of the Value Chain <ul><li>Economies of Scale </li></ul><ul><li>Learning </li></ul><ul><li>Capacity Utilization </li></ul><ul><li>Linkages among activities </li></ul><ul><li>Degree of Vertical Integration </li></ul><ul><li>Timing of market entry </li></ul><ul><li>Firms policy of cost or differentiation </li></ul><ul><li>Geographic Locations </li></ul>
  11. 11. Competitors <ul><li>Cartier </li></ul><ul><li>BVLGARI </li></ul><ul><li>Harry Winston </li></ul><ul><li>Chopard </li></ul><ul><li>Fred Leighton </li></ul><ul><li>Michael Katz </li></ul>
  12. 12. Competitive Strategy <ul><li>Differentiation strategy </li></ul><ul><li>Brand loyalty </li></ul><ul><li>Price sensitivity </li></ul><ul><li>Value creating strategy </li></ul>
  13. 13. Competitive Strategy <ul><li>Increased marketing </li></ul><ul><li>Accelerated pace of store openings - 17 stores </li></ul><ul><li>New product expansion- Yellow diamonds, handbags and accessories </li></ul><ul><li>Expansion of internet sales- launch of online business in continental Europe </li></ul>
  14. 14. Global Strategy <ul><li>Tiffany’s global locations : </li></ul><ul><ul><ul><li>America’s </li></ul></ul></ul><ul><ul><ul><li>Asia Pacific </li></ul></ul></ul><ul><ul><ul><li>Europe </li></ul></ul></ul><ul><li>Internet sales </li></ul><ul><li>Business to Business (B2B) </li></ul><ul><li>Wholesale Distribution </li></ul>
  15. 15. Tiffany Global Expansion <ul><li>Opening of 17 new Company-operated stores (six in the Americas, eight in Asia-Pacific and three in Europe); </li></ul><ul><li>The Company operated 220 TIFFANY & CO as of January 2010 91 in the Americas, 102 in Asia-Pacific and 27 in Europe vs. versus 206 locations a year ago (86 in the Americas, 96 in Asia-Pacific and 24 in Europe). </li></ul>
  16. 16. S - Curve Analysis <ul><li>The specialty retail industry is currently in the mature stage of the industry life cycle </li></ul><ul><li>From the 1970’s to the 1990’s, the specialty retail industry experienced a large growth with the increase in shopping malls in the United States </li></ul><ul><li>A channel being used for many specialty retailers to grow is the internet. Companies of all sizes are able to offer their products online to a larger consumer base then previously possible </li></ul>
  17. 17. S-Curves TIF
  18. 18. Finanical Snapshot <ul><li>For the year, net sales dropped 5 % to $2.71bn. But net earnings from continuing operations rose to $265.7m from $232.2m on the back of aggressive cost-cutting. </li></ul><ul><li>S G and A expenses rose 7 % in the quarter, as a result of higher incentive compensation for management. </li></ul><ul><li>Balance sheet liquidity at January 31, 2010 included: cash and cash equivalents of $786 million (versus $160 million a year ago), and total short-term borrowings and long-term debt of $754 million (versus $709 million a year ago). </li></ul><ul><li>In the Asia-Pacific region, sales rose 14% to $318.0 million in the fourth quarter due to strong growth in all countries except Japan </li></ul>
  19. 19. U.S. Retail vs Jewelry Sales
  20. 20. U.S. Specialty Jewelers Sales
  21. 21. Financial Snapshot Q1 2010 <ul><li>Net sales increased 17% to $981.4 million, compared with $837.6 million in last year's fourth quarter </li></ul><ul><li>Tiffany’s planned capital spending is jumping to $200m, from $75m last year </li></ul>
  22. 22. Key Strategies of Tiffany &Co. <ul><li>To selectively expand its global distribution without compromising the value of the TIFFANY & CO. trademark (the “Brand”). </li></ul><ul><li>To increase store productivity </li></ul><ul><li>To achieve improved operating margins   </li></ul><ul><li>To enhance customer awareness   </li></ul><ul><li>To maintain an active product development program  </li></ul><ul><li>To provide superior customer service </li></ul><ul><li>     </li></ul>
  23. 23. QUESTIONS

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