Elaborative SWOT Analysis Of Tiffany and Co. – An American Luxury Goods Manufacturer International Company

Quick Stats on Tiffany and Co.

Founder	Charles Lewis Tiffany, John B. Young
Year Founded	1837
Origin	New York City
No. of Employees	14,200+
Company Type	Public
Market Cap	$16.03 Billion (2019)
Annual Revenue	$4.44 Billion (2019)
Net Income/ Profit	$586.4 Million (2019)

 

Products by Tiffany and Co.

• Jewellery
• Sterling silver
• Crystal
• Stationery
• Fragrances
• Water bottles
• Watch
• Personal accessories
• Leather goods

What’s new with Tiffany and Co.

Check out the current news about Tiffany and Co. :

• The USTA, Snap Inc., and Tiffany & Co. will collaborate to create an immersive augmented reality (AR) fan experience at the 2023 U.S. Open tennis competition. Visitors can simulate a swing with a digital tennis racquet decorated with Tiffany & Co. diamonds.
• Blackpink’s Rose and Florence Pugh are featured in BTS Jimin’s new Tiffany & Co. campaign, which is going viral online and drawing a lot of attention to the company.
• Along with celebrities like Jimin and Blake Lively, Ranveer Singh was photographed at the opening of the Tiffany & Co. store in New York City.

Target Audience of Tiffany and Co.

Women between the ages of preteen and middle age make up the majority of Tiffany & Co.’s target market. These people give the most thought to their personal appearance and status symbols.

Tiffany and Company sells premium cosmetics and personal care items to upper-middle-class and affluent women who are devoted consumers.

Following is the buyer persona of Tiffany and Co.

Now that we understand the company’s key business, let’s look at 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, and started to sell stationery and fancy goods, now become one of the largest luxury jewellery brands of all time maintaining a 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, 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. has 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. has a good presence and a wide variety of products. The company is also successful in keeping 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 to build its brand image and also never puts its products on sale or 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 for men and women, it deals in watches, perfumes, jewellery, lifestyle accessories, leather goods, tableware, and wallpaper. It also focuses on new product lines and 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 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 lack appeal for millennials who are more attracted to 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. has more growth and revenue from Asian markets such as China, so in October 2018, Tiffany and Co. opened in China and adopted new payment methods, Using traditional & digital sentiments in its product line can help the brand establish 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 have been going slow since 2016 and they only contribute three percent 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. has 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 in its other products such as fragrances, watches, water bottles, and others. Tiffany and Co. has 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 made that its deficit is from the animals and are dependent on that on a large scale.
• Online Competitors: There are some competitors that are taking over the market using online channels such as BlueStone and CaratLane. People are more prone to an easement in buying if trust is built up properly.

Also here is a campaign of Tiffany and Co. that received backlash from viewers:

“Not Your Mother’s Tiffany” campaign sparks backlash

Some of Tiffany & Co.’s devoted followers are becoming enraged by the company’s most recent attempt to lure Gen Z. Not all mothers were fans of the premium jewellery company’s “Not Your Mother’s Tiffany” advertising campaign.

Multiple films for the campaign that are currently airing on Instagram and Twitter show posters of youthful, edgy models with the bolded phrase “Not Your Mother’s Tiffany” underneath them.

“As a mum and older woman you’re saying you don’t need me as a customer anymore,” are like some comments received to this ad on social platforms.

Before we conclude this blog on SWOT Analysis of Tiffany and Co. Let us have a look at the competitors of this company.

Competitors of Tiffany and Co.

• Harry Winston: Harry Winston, Inc. is an American luxury jeweler and producer of Swiss timepieces. The company was founded in 1932 as Harry H. Winston Jewels, Inc.
• Cartier:Cartier is a French luxury goods conglomerate that designs, manufactures, distributes, and sells jewellery. Cartier was founded by Louis-François Cartier in Paris in 1847.
• Tous: Tous is a Spanish jewelry, accessories, and fashion retailer that was founded by Salvador Tous Blavi and Teresa Ponsa Mas. It is based in Catalonia, Spain.
• Pandora Jewellry: Pandora is a Danish jewellery manufacturer and retailer founded in 1982 by Per Enevoldsen. The company started as a family-run jewellery shop in Copenhagen. Pandora is known for its customizable charm bracelets, designer rings, earrings, necklaces, and watches.
• FF Group: Folli Follie is a Greek-based international company that designs, manufactures, and distributes luxury jewellry, watches, and fashion accessories.

This ends our elaborative SWOT Analysis Of Tiffany and Co. Let us conclude our learning below.