TIFFANY CO. CASE STUDY

Tiffany Co. Case study



Tiffany Co. Case study

Introduction

Since 1983 Tiffany & Co. has been dedicated to provide their consumers with one main design, sustainability. They know that their customers expect nothing less than top quality in jewelry and services and Tiffany's has done just that for the past twenty-four years. Recently Tiffany's has developed a new goal to search the mines for more environmentally friendly materials that will maintain their image of top quality while “obtaining precious metals and gemstones in ways that are socially and environmentally responsible.” The adopted strategy that Tiffany & Co. has adopted is assuring the integrity of their sources while maintaining strong leadership at promoting responsible business practices.

Case Background

In July 1993, Tiffany & Company reorganized its Japanese distribution channel by repurchasing its inventory from its Japanese distributor Mitsukoshi Limited. As a result of this action, Tiffany would assume the responsibility of establishing yen retail prices, holding inventory in Japan for sale, and controlling local Japanese management. Tiffany would be able to have control over retail price in Japan where historically had higher price. Under the previous arrangement, Tiffany contracted Mitsukoshi as the principal retailer in Japan and the transaction of wholesaling to Mitsukoshi was settled in U.S. dollar, under the new agreement, Tiffany now faced the risk of foreign currency fluctuations (Sen, S., & Bhattacharya, C. B. 2001).

Unique Value Proposition

The name Tiffany & Co represents many things, manly a taste of luxury. When the customer purchases a piece of jewelry or even a sterling silver spoon at Tiffany & Co, they know they are getting the very best. Since the start of the company high class has been their style. Tiffany & Co seals thousands of diamonds a year. To ensure that their diamonds and other gems come from a safe non-conflict area they have taken cretin measures. Measures such as the “Kimberley Process Certification Scheme”. This is a check and balance systems to ensure diamonds do not come from conflict areas. Diamonds are not the only area Tiffany& Co takes protective measures in (Murray, K. B. & Vogel, C. M. 1997). The company recognizes that it is a world leader in the jewelry industry has a whole and in the last several years has been taking giant steps in the mining industry as well as gemstones. Remarkably the company is one of the only fine jewelry companies to practically refuse the use of coral. Tiffany & Co feel the marine life is being killed off. Tiffany & Co has gone above and beyond in the economical efforts (knowledge.wharton.upenn.edu).

Different, Tailored Value Chain

Tiffany & Co has always done things differently. Although there happens to be other high end comports such as Harry Winston or Mikimoto (which deals mostly in the pearl business) Tiffany & Co will always come out on top. The company has a better brand recognition. The little blue box is symbol enough. There is no denying the company is at the top in terms of fine jewelry, however ...