Tiffany & Co. Iconic Strategy for Success: Diamond Retailer Case Study
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.
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.
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)
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:
- 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
- Leather goods
- Table wear
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.
Why do People Buy Expensive Jewelry?
People buy expensive name jewelry for the sake of the:
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.