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Tiffany Case Study

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THE MAIN STRATEGIC PROBLEMS
PROBLEM: ‘Tiffany’ was very focused on their brand name. In most of the cases it is very good for a company and for Tiffany it would be right decision as well but the management preferred to do it starting from the bottom point. In my opinion, it was wrong decision. The company put very high prices on jewelries which do not have very high value according to the materials, and furthermore the company did not have the name what would attract people to buy its products. The company had chosen fundamental strategy to keep their name up and make it more famous. The second strategic fault, in my view, was the licensing the Tiffany brand to an Italian fashion-eyewear manufacturer – it means they have no control over the products which are produced by other company, so most probably the quality also will not be the same. It can be the reason for sales to fall down.
Solution 1: I think they should have licensed the name for other sphere of production – this point would assure people that the products they used to buy from Tiffany are still made by the same way, and quality is going to be saved as usual.
Solution 2: I would enhance the range of the products, and at the same time to have a control over of their quality. I think, in this case the sales would go up with the income.
Recommendation: In my opinion the second solution would be better for this case. According to the Tiffany’s history: in most of the times the company was making decision exactly in this way by increasing the range of products – and afterwards it was very successful.
THE MAIN TACTICAL PROBLEMS
PROBLEM: Despite that it is 21st century – time of business through the internet – the Company saves its structure of sales – the customers can get Tiffany’s products only from stores.
Solution 1: To open an internet store would increase the revenue and make Tiffany’s jewelry

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