Tiffany & Co. Iconic Strategy for Success: Diamond Retailer Case Study

Updated on May 19, 2017

The dynamic strategy that propelled Tiffany & Co. to one of the greatest (if not the greatest) diamond retailers in the world is one worth imitating by prestigious organizations who are attempting to rise to greatest in their industries.

Imitating the strategies of great organizations is a way entrepreneurs and CEO’s to become a coveted fortune 500 company in his or her own industry.

Founded in 1837 by Charles Lewis Tiffany, Tiffany & Co. introduced the 287-carat yellow diamond, followed by the signature Tiffany engagement ring sitting. Earlier the iconic diamond retailer had won numerous rewards at jewelry conventions, establishing its reputation as in the industry.

Mission Statement

What makes the Tiffany & Co. so distinguished is that it continues to live up to its mission statement of being “the world most respected Jeweler.” No company can become great in the marketplace without possessing a powerful mission statement, one that is designed to take it to the top mountain to rule over the competition.

Symbolism: The Little Blue Box

  • High quality
  • Commitment to excellence
  • Established tradition and consistency
  • Respect for customers
  • Pristine reputation

The ideal of giving customers a gift that symbolizes an organization’s commitment to the customer’s satisfaction is a wonderful gesture. Each time customers receive the gift, they recognize that they are receiving superior quality.

Target Audience

The diamond retailer obtained its magnificence in the industry by targeting wealthy or affluent buyers with a taste for excellence in fine jewelry. Such strategic concept has helped separate and elevate the Tiffany & Co. brand above the competition.

One of the reasons the giant retailer could bounce back immediately after the 2008 recession is that the wealthy continued to buy its brand name diamonds, despite hard times. The reality is that the recession affected the low-income sector of society more harshly than it affected the rich and wealthy. (A.J. Strickland)

To reinforce its commitment to fine diamonds, Tiffany & Co. gives each of its customers a little blue box, which symbolizes sophistication and excellence. (A.J. Strickland)

Source

Establishes Superior Customer Service

Another thing that makes Tiffany & Co. superior to its competitors is the way it trains its employees for dynamic customer service. Each employee, even before he or she can interact with the public, is equipped with knowledge and skills designed to give the customer an unforgettable experience.

Employee Training Strategy:

  • Knowledge
  • Skills
  • Product training
  • Written test

Making sure employees are properly trained to interact with customers on behalf products and services is a wonderful way to stay ahead of the competition and give the buyer a strong reason for coming back.

Customers love it when sellers show an intense sense of passion for what they do. The atmosphere becomes electric. As a result, the customer is happy with the experience.

In addition, customers expect diamond retailers to thoroughly know about the product he or she is attempting to sell. A retailer that doesn’t know about his diamonds is liable to be untrustworthy in the eyes of the buyer.

Committing to an Ever-Expanding Product Line

In today’s economy, an organization will do wise to expand its products line. Today, Tiffany & Company is not only known for its distinguished diamonds. The retailer also offers a wide range of other products, including:

  • Other types of men and women jewelry
  • Keychains
  • Eyewear
  • Handbags
  • Scarves
  • Leather goods
  • Table wear
  • Vases

An organization that sells only one item in the market place will most likely experience financial stress when sales are low or competition increases. But by expanding its product line, an organization can keep money flowing into the organization.

Source

Why do People Buy Expensive Jewelry?

People buy expensive name jewelry for the sake of the:

See results

Maintaining Dominance and Outshining the Competition

Once again, Tiffany & Co. became great because of its decision to serve the wealthy, and affluent sector of society. However, other competitive diamond retailers will continue to look for strategic ways to take full control of jewelry industry.

The retail jewelers that offer the most competition for Tiffany & Co. include:

  • Blue Nile Inc: a diamond retailer that dominates the online market
  • Bulgari S.p.A: specializes in top luxury goods and jewelry
  • Costco: largest membership warehouse chain, includes in its product line lower cost diamonds with outstanding quality
  • Signet Group, PLC: the largest mall retail jeweler

Understanding the competition is a priority for organizations who want to stay ahead. For Tiffany & Co., dominating the fine diamond industry means being loyal to its mission while continuing to embrace excellence, promote quality, expand its product line to go beyond one-dimensionality and to increase customer satisfaction to the maximum.

Thompson, A & Strickland, A. (2014). Crafting Executive Strategy. (C90-C91). New York, NY: McGraw-Hill Irwin Publishing.

Comments

    0 of 8192 characters used
    Post Comment

    • Magicality LM profile image

      Magicality LM 

      14 months ago

      Nice study. Not for small shrimps though ...

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, toughnickel.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://toughnickel.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)