Last time we went through the alluring SWOT analysis of Bblunt – An Only Salon Brand Crossed 1 Million Haircuts in India. This time let’s have a look at the SWOT Analysis Of Tiffany and Co.
Several brands lead to great success stories and Tiffany and Co. are one of them. Being a New York-based high-end luxury jewellery and speciality retailer brand, it has been established for almost two centuries now. It is renowned for its fashion and luxury products and is also recognised as the world’s luxurious jewellery brand with an image of wealth, quality, and style.
The reason why Tiffany and Co. became the world’s leading luxury jewellery brand is its application of effective marketing strategies which also include digital marketing strategies. It is essential for every business in the market to have a digital presence as most people nowadays are online. If you want to know what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
Thus this makes us keen to know how Tiffany and Co. have gained such success in its industry, here we have done an alluring SWOT Analysis Of Tiffany and Co. But before starting its SWOT analysis Of Tiffany and Co. let’s get a brief idea about Tiffany and Co. as a company, its products, competitors, financials, and more.
About Tiffany and Co.
Tiffany and Co. is a luxury goods manufacturer international company, founded by Charles Lewis Tiffany in 1837 as a stationery and fancy goods emporium in Brooklyn, Connecticut. Tiffany and Co. have iconic status in the world of luxury. Tiffany and Co. have more than 9 product divisions other than jewellery that are leather, watches, tableware, decorative arts, stationery, crystal, water bottles, personal accessories and many more.
Presently, the jewellery chain has operations in the US, UK, Europe, Canada, South America, Australia, and Malaysia. The jeweller makes almost 60% of their products from the cheaper versions such as sterling silver, rose gold and other non-jewellery products that are outsourced to contractors.
|Founder||Charles Lewis Tiffany, John B. Young|
|Origin||New York City|
|No. of Employees||14,200+|
|Market Cap||$16.03 Billion (2019)|
|Annual Revenue||$4.44 Billion (2019)|
|Net Income/ Profit||$586.4 Million (2019)|
Products by Tiffany and Co.
- Sterling silver
- Water bottles
- Personal accessories
- Leather goods
Competitors of Tiffany and Co.
- Harry Winston
- Pandora Jewelry
- FF Group
Now that we understand the company’s key business, let’s look after the SWOT Analysis Of Tiffany and Co.
SWOT Analysis Of Tiffany and Co.
Talking about the Tiffany and Co. business, let’s understand how this corporation can cater to different individuals using SWOT analysis. SWOT analysis of Tiffany and Co. helps us to understand companies through the lens of internal and external factors. Internal factors refer to strengths and weaknesses, which can be controlled by the corporation.
To better understand the SWOT Analysis Of Tiffany and Co., refer to the infographic below:
Now first let’s begin with the strengths of the company from the SWOT Analysis Of Tiffany and Co.
Strengths of Tiffany and Co.
As one of the leading companies in its industry, Tiffany and Co. has numerous strengths that enable it to thrive in the marketplace. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets.
- Legacy: Tiffany & Co. was established in the year 1883, which started to sell stationery and fancy goods, now became one of the largest luxury jewellery brands of all time with maintaining the legacy of 184 years.
- Global Appearance: Tiffany and Co. is a US-based international company that was established in 1837. It has 326+ stores across the United States, Japan, and Canada, as well as Europe, the Latin America and Pacific Asia regions and has more than 15000 employees. It has a revenue of 5 Billion USD in the year 2020. Tiffany and Co. have a strong brand name, awareness and global presence which makes it one of the biggest strengths of the company.
- Strong Brand Image: Tiffany and Co. have a good presence and a wide variety of products. The company is also successful in keeping the product differentiation and superior quality products. It is also engaged in various sponsorships of sports awards through which its brand can get awareness worldwide.
- Maintain Status Quo: To maintain its status in the market it does not encourage celebrity endorsement for building its brand image and also never put its products on sale and discount. The products are standardized and fixed priced which are non-negotiable across the globe to keep things the way they are presented.
- Wide Variety of Products: It deals in a wide range of products like for men and women, it deals in watches, perfumes, jewellery, lifestyle accessories, leather goods, tableware, wallpaper. It also focuses on new product lines and also introduces the existing product to a new segment, Tiffany and Co. earns good revenue by selling its products to China and the Asian market.
Weaknesses of Tiffany and Co.
Weaknesses are the areas where Tiffany and Co. can improve upon. Strategy is about making choices and weaknesses are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
- Counterfeited Products: Nowadays has made it easier for design pirates to make fake products due to which fake products look more accurate and quicker than ever as detailed shots of the products are posted within a few minutes of launching them, so sometimes it is hard to trust them, due to which other brands also suffer somewhere.
- Aged Designs: Although the brand makes designs that are signature and enjoy global recognition, Tiffany and Co. have been sticking to the manufacturing of old designs which gives its competitors an edge over it.
- Extremely Expensive: Tiffany and Co. is a brand that is way more expensive than its competitors. However, people with disposable income are always willing to pay for it but somehow it is losing its potential customers.
- Unable to Capture the Interest of Youngsters: An old name in the luxury business is a lack of appeal for millennials who are more attracted towards luxury brands that follow trends and modern styles.
Opportunities for Tiffany and Co.
- Investing in Digitalisation & E-commerce: Tiffany and Co. have been investing in its online store for the past few years and e-commerce platforms have also been successfully established for the new customer base. Tiffany and Co. have more growth and revenue from Asian markets such as China, so in October 2018, Tiffany and Co..com opened in China which adopted new payment methods, using traditional & digital sentiments in its product line can help the brand in establishing a stronghold in the country.
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- Brand Equity: Brand equity is a value premium that a company generates through its product with a recognizable name when compared to others. Tiffany and Co. have a wide variety of products in which it deals, it’s especially jewellery and leather goods. The watches are going slow from 2016 and they only contribute three per cent of the brand’s 5.0 billion revenue. Tiffany and Co. are working hard on brand equity to widen its range of products.
- Global Expansion: Tiffany and Co. have 300+ stores but still, in a few countries, there is not much awareness about this brand, so by providing brand awareness to the products they can target their customers more globally. Tiffany and Co. are facing certain turndowns in some categories, wider economic, shifting of consumer preference, and fluctuating demand.
- Strengthening Product Line: The brand has already a well-established name and is globally recognized for its innovations and craftsmanship. It can use its strength to its other products such as fragrances, watches, water bottles, and others. Tiffany and Co. have to be very particular about its marketing strategy, it can introduce its product to a new segment and should also focus on new product lines.
- Attract Tourists Through Capitalizing in Asia: Tourists from other countries often invest in goods of Tiffany and Co. which the brand can take advantage of to capitalize more on nations like India and Europe where tourists are the main attraction.
Threats to Tiffany and Co.
- Substitution of the Product: Easy substitution of the products is possible as various options are available to the customers such as Harry Winston, Cartier, Tous, Pandora Jewelry, etc.
- PETA: The backlash from People for the Ethical Treatment of Animals (PETA) over the use of animal skin for the products as most of the products such as belts, watches, wallets, etc are manufactured using leather and many products are such made that its deficit is from the animals and are dependent on that on a large scale.
- Online Competitors: There are some competitors which are taking over the market using online channels such as BlueStone and CaratLane. People are more pronto easement in buying if trust is built up properly.
This ends our elaborative SWOT Analysis Of Tiffany and Co. Let us conclude our learning below.
Tiffany and Co. are one of the oldest and prestigious brands, which has a market franchise with experience of more than 180 years. Also, it has been using different kinds of marketing strategies to gain brand awareness and to get global reach to the customer.
They have been having many showrooms for centuries and now launching digital stores and pop-up stores to make their brand more accessible, it has also been focusing on its digital marketing strategy for better brand visibility and brand awareness.
As most people are using digital media, every business needs to make a strong digital presence of its business thus digital marketing is very essential. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT Analysis Of Tiffany and Co. has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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