Innovation and design
Strengths
Tiffany is a company specializing in jewelry and diamonds targeting the lifestyle and retail sectors of the fashion clothing and accessories industry. Tiffany has positioned itself as a brand for flawless craftsmanship. Besides, it offers exquisite collections of couture jewelry that is not easy to find in other establishments around the world.
Weakness
It follows trends of design; luxury products are not trends. They have to stick to heritage and company exclusivity. This is therefore a weak characteristic. It should be corrected to adhere to anti-laws of marketing.
Opportunity
Tiffany already has many designs, and it can cut back of the designs and continue selling its current portfolio as a limited exclusive deal. Instead of keeping up with the competition and with customers’ expectations through the brand designs, it should stick to its designs.
Threats
The constant innovating in designs to appear ahead of the curve might backfire as an innovation and design strategy. Based on the understanding of anti-laws, the company should not be considering customer tastes and preferences, but should be leading their value equity to shape their preferences.
Branding
Strengths
Its slogan is “true love grows’ and the company’s brand is known for great design techniques and innovative overall jewelry designs. Tiffany has a rich heritage. The exclusive Tiffany stores are a brand statement of luxury. They help present the indulgent experience to customers, and they provide a status claim for businesses associated with them.
Weakness
Another weakness is that Tiffany is failing to associate its brand so much with the luxuries of the developed world and is too concerned with appealing to emerging economies at the expense of its heritage.
Opportunity
The company can cut back on social media use for marketing, persist with the communication of its heritage as its branding strategy and positioning approach. Emphasizing on the heritage of the brand will be a way for the corporate strategy to merge with marketing
Threats
Other than their aspiration and status-seeking behavior, many people in emerging economies are not very much aware of Tiffany’s heritage and are therefore less included to show loyalty to the brand. Without awareness, the brand equation of the company deteriorates.
Corporate Strategy
Strengths
It set up the silver standard that was eventually adopted by the United States as 925/1000. It also produced ceremonial swords that have been used as artistic features that decorate the whole house and serve as a reminder of the history of the United States. Besides heritage, the company is agile and has a strong workforce of more than 10,000 full-time employees. They drive the company culture and its tradition, such that it has a unique, innovative perspective against its rivals.
Weakness
The company has been less responsive to emerging opportunities for communicating brand values to new markets. It must be aggressive for all opportunities. It cannot waste a chance for building awareness.
Opportunity
Sticking to tested marketing and branding philosophies has worked for many years. However, the increase in popularity of jewelry and diamonds as luxury life statements and as probable means of storing value has increased the demand for these products. Its corporate strategy can include a cut down on expansion and an increase in advertising to communicate the brand value. Limiting expansion strategies and increasing prices is the best opportunity for growth that the company should take.
Threats
Consequently, the competition has increased both from traditional competitors and from new entrants into the global trade. Many of the new entrants existed, but only in their home regions. Globalization has allowed the proliferation of brands to persist.
Website/E-commerce
Strengths
The website is well built. A good site helps to build brand awareness. It also gives company opportunity to set price through the communication of luxury. Some customers may find design complicated. But that is expected on sophisticated products and services.
Opportunity
The speed of loading can be improved. Customers want to feel they are experiencing a superior product or service. They are paying for luxury, and it does not have to be a pain for them to experience brand value. A speedy website helps with brand awareness.
Threats
Hackers may take the website down; if that happens, then the website will seem cheap. Being cheap is not a quality that luxury brands can afford. The company should invest everything it has to set up strong protection.
SCM
Strengths
The company meets the interest of the jeweler connoisseurs. It also targets people seeking to buy its designs as well as other establishments and persons with a taste for unique designs.
Sustainability
Strengths
Having good strategies, good brand reputation and an appropriate marketing strategy makes the brand sustainable. It can continue doing the same thing and its businss will grow. Customers are already associating the brand with luxury, and that ensures they remain willing to buy.
Weakness
The company has introduced many products in its portfolio in the past decades such that presently it has a huge collection. The huge product portfolio serves as an attractive market advantage, especially for customers who are interested in accumulating vast collections of dissimilar jewelry and diamonds. It risks being a mass market company.
Opportunity
It should continue to associate with an affluent and abundant lifestyle that can help it percolate into the increased competition among high luxury fashion brands seeking entry into the jewelry market.
Threats
The lack of factors that allow the brand to claim loyalty in new markets is a threat. It does not need to succumb to client pressures. Being able to claim its position in new markets is important, otherwise, it will be defeated by other luxury brands also targeting these markets. It has to review its market entry strategies to ensure that it comes strongly as a luxury brand with renowned heritage.
Internationalization
Strengths
Strength is the company’s wide network of retail stores in different countries. Besides the exclusive stores, Tiffany also relies on more than 100 international stores and the licensee’s establishment in cities around the world.
Weakness
The company has not formed any alliances with retailers, distributors and manufacturers that would give it monopoly status in the jewelry market. Therefore, it continues to face significant competition, both from genuine rivals and from counterfeiters.
Opportunity
With a significant presence in the world’s major cities, Tiffany is already well placed on being available to clients. It can tap into the increase levels of income around the world, especially among the new upper-class individuals. Cities are increasingly becoming populated with high-earning individuals, and they represent the highest demand areas for Tiffany.
Threats
In times of economic recession such as the recent financial crisis around the world, it is tempting to hold on to price increases as scheduled for fear of hurting brand sales. Such a move will hurt the company’s overall dream equation. The company communicates its brand personality of being affluent and pricey because its customer self-concept is about value.
Ethics
Strengths
It mainly targets the upper middle-class and the upper-class society women and men interested in getting jewelry for women who are less critical of its brand. Direct targeting helps to keep out non-customers and therefore avoid brand dilution and confusion that can lead to negative remarks by non-customers.
Weakness
Unfortunately, for Tiffany, its fixation with traditional modes of marketing, especially in print magazines for high-class targets, is fading due to external industry trends that the company has been slow to capture, such as internet-based features that can help it cultivate closeness to the arts and help minimize criticism.
References
Som, A., & Blanckaert, C. (2015). The road to luxury: the evolution, markets and strategies of luxury brand management. Singapore: John Wiley & Sons.