Three Strategic Recommendations
Tiffany & Co. is a company with a long history of success, and it is known for its willingness and ability to satisfy every need of its customers. However, there have been many occasions in the sphere of business when even prosperous firms failed due to different reasons. Problems with strategic management frequently constitute the core of such failures. Thus, three recommendations are offered for the company in order to achieve sustainable growth and stable success.
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The first strategic piece of advice for Tiffany & Co. for the nearest three years is to expand the company’s distribution channels in significant markets all over the world. Distribution is one of the key factors that promote any business’s development (Wheelen et al. 141). Currently, Tiffany & Co. operates on four large segments: Asia-Pacific, Europe, Japan, and the Americas (LaVan 52). However, increasing the number of markets where the products could be distributed will have a positive impact on the company’s success.
The second strategic recommendation is to diversify the products offered by the firm. Currently, nearly 91% of Tiffany & Co.’s product lines is associated with jewelry (LaVan 52). While this segment is decisive for the firm’s success, it is necessary to develop new products to expand the company’s market outreach.
The third strategic suggestion is to promote the company’s products through creating a jewelry line that will have reasonable prices so that anyone could buy their own “piece of Tiffany & Co.” The firm is known for its high quality and exquisite designs, but it seems relevant to create a repetitive line of jewelry that even people with the moderate income could afford.
The Key Strategic Recommendation
Out of the three ideas suggested, the one concerning the diversification seems to be the most reasonable. Tiffany & Co.’s reputation is impeccable, and its customers are loyal. However, the company mostly focuses on jewelry, which limits the market outreach opportunities. Diversification is known to be one of the most crucial aspects when considering the expansion of business (Tomczak et al. 70). The reputation that Tiffany & Co. built over many years of successful operating is associated with jewelry pieces. However, if the company want to sustain its current customers and attract new ones, it needs to consider some more ways of attracting clients.
The most reasonable possible new line that Tiffany & Co. might work with are items for newborns. In fact, it is not an entirely new line since the company already produces a variety of baby rattles, picture frames, and feeding spoons. However, it could also create a line of clothes for newborns. The slogan for this product line may be “Dress your baby in luxury from the first days of life.” While clothing is not the primary product of the company, the prices for garments are much lower than for jewelry, which will lead to more people becoming interested in the brand.
Further, these customers may consider collecting money to buy some jewelry piece for their children, and gradually they will grow into regular customers. Another benefit for the company from this strategy is the advertising options. Babies wearing clothes with Tiffany & Co.’s brand name in traditional “Tiffany blue” color will attract attention and remind people around them about the variety of products that the company offers to people all over the world.
LaVan, Lauren. A Global Strategic Financial Analysis of the Luxury Retail Industry. 2015. Web.
Tomczak, Torsten, et al. Strategic Marketing: Market-Oriented Corporate and Business Unit Planning. Springer Gabler, 2018.
Wheelen, Thomas L., et al. Strategic Management and Business Policy: Globalization, Innovation and Sustainability. 15th ed., Pearson, 2018.