Tiffany & Co.Susan Tartara, Christina Caamano, Sara Birnbaum, Corinne WhiteMBAe 2010-2Business StrategyAnalysis

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CompetitorsCartierBVLGARIHarry WinstonChopardFred LeightonMichael Katz

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Competitive StrategyDifferentiation strategyBrand loyaltyPrice sensitivityValue creating strategy

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Competitive StrategyIncreased marketing

Accelerated pace of store openings - 17 stores

New product expansion- Yellow diamonds, handbags and accessories

Expansion of internet sales- launch of online business in continental Europe

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Global StrategyTiffanys global locations:AmericasAsia PacificEuropeInternet salesBusiness to Business (B2B)Wholesale Distribution

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Tiffany Global ExpansionOpening of 17 new Company-operated stores (six in the Americas, eight in Asia-Pacific and three in Europe);

The Company operated 220 TIFFANY & CO as of January 2010 91 in the Americas, 102 in Asia-Pacific and 27 in Europe vs. versus 206 locations a year ago (86 in the Americas, 96 in Asia-Pacific and 24 in Europe).

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Notes

Opening 17 new company operated stores with a higher concentration in the Asia Pacific region. *

Finanical SnapshotFor the year, net sales dropped 5 % to $2.71bn. But net earnings from continuing operations rose to $265.7m from $232.2m on the back of aggressive cost-cutting.S G and A expenses rose 7 % in the quarter, as a result of higher incentive compensation for management. Balance sheet liquidity at January 31, 2010 included: cash and cash equivalents of $786 million (versus $160 million a year ago), and total short-term borrowings and long-term debt of $754 million (versus $709 million a year ago). In the Asia-Pacific region, sales rose 14% to $318.0 million in the fourth quarter due to strong growth in all countries except Japan

Christina:For the year sales dropped 5% to 2.71B but earnings from operations increased to $265.7M from $232.2M the prior year due to aggressive cost cutting measures. Expenses rose 7% due to higher incentive compensation management. Tiffany realizes the importance of keeping key management in place to help minimize any growing pains for the company. Balance sheet liquidity has increased to 786M from 160M a year ago. Asia Pacific sales rose 14% due to strong growth in all countries except Japan*

Financial Snapshot Q1 2010Net sales increased 17% to $981.4 million, compared with $837.6 million in last year's fourth quarterTiffanys planned capital spending is jumping to $200m, from $75m last year

Christina- Results from first Quarter 2010 companies net sales increased 17% to 981.4M compared with 837.6 in last years 4th quarter. Tiffanys planned capital spending has increased to 200M from 75M last year showing the effect of last years cost cutting measures and allowing for expansion in 2010. In the US, luxury spending rose 15 per cent from January to February. Year end stock prices show a nice recovery in 2009 from 23.63 at the end of 08 to 43.09 at the end of 09. Current stock value is at $49.79. *

Key Strategies of Tiffany &Co.To selectively expand its global distribution without compromising the value of the TIFFANY & CO. trademark (the Brand).To increase store productivityTo achieve improved operating margins To enhance customer awareness To maintain an active product development program To provide superior customer service

Christina:Management intends to expand distribution by adding stores in both new and existing markets. Management recognizes that over-saturation of any market could diminish the distinctive appeal of the Brand, but believes that there are a significant number of locations remaining worldwide that meet the requirements of the Brand. Company has opened smaller size stores which have contributed to higher store productivity. In addition, the Company is focused on growing sales per square foot by increasing consumer traffic and the conversion rate through targeted advertising, ongoing sales training and customer-focused initiatives. Managements long-term objective is to improve gross margin through greater product manufacturing/sourcing efficiencies and increased use of distribution center capacity. Management also intends to improve the ratio of selling, general and administrative expenses to net sales by controlling expenses and enhancing productivity.The Brand is the single most important asset of the Company and management will continue to invest in marketing and public relations programs designed to increase customer awareness, and will continue to monitor the strength of the Brand through market research. The Company continues to invest in product development in order to introduce new collections and add new and innovative products to existing lines. The Company will continue to seek additional sources of diamonds which, combined with its internal manufacturing operations, are intended to secure adequate product supplies and favorable costs. Company will continue to provide superior customer service by employing highly qualified sales and customer service professionals and maintaining ongoing training programs.

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Notes

Opening 17 new company operated stores with a higher concentration in the Asia Pacific region. *Christina:For the year sales dropped 5% to 2.71B but earnings from operations increased to $265.7M from $232.2M the prior year due to aggressive cost cutting measures. Expenses rose 7% due to higher incentive compensation management. Tiffany realizes the importance of keeping key management in place to help minimize any growing pains for the company. Balance sheet liquidity has increased to 786M from 160M a year ago. Asia Pacific sales rose 14% due to strong growth in all countries except Japan*Christina- Results from first Quarter 2010 companies net sales increased 17% to 981.4M compared with 837.6 in last years 4th quarter. Tiffanys planned capital spending has increased to 200M from 75M last year showing the effect of last years cost cutting measures and allowing for expansion in 2010. In the US, luxury spending rose 15 per cent from January to February. Year end stock prices show a nice recovery in 2009 from 23.63 at the end of 08 to 43.09 at the end of 09. Current stock value is at $49.79. *Christina:Management intends to expand distribution by adding stores in both new and existing markets. Management recognizes that over-saturation of any market could diminish the distinctive appeal of the Brand, but believes that there are a significant number of locations remaining worldwide that meet the requirements of the Brand. Company has opened smaller size stores which have contributed to higher store productivity. In addition, the Company is focused on growing sales per square foot by increasing consumer traffic and the conversion rate through targeted advertising, ongoing sales training and customer-focused initiatives. Managements long-term objective is to improve gross margin through greater product manufacturing/sourcing efficiencies and increased use of distribution center capacity. Management also intends to improve the ratio of selling, general and administrative expenses to net sales by controlling expenses and enhancing productivity.The Brand is the single most important asset of the Company and management will continue to invest in marketing and public relations programs designed to increase customer awareness, and will continue to monitor the strength of the Brand through market research. The Company continues to invest in product development in order to introduce new collections and add new and innovative products to existing lines. The Company will continue to seek additional sources of diamonds which, combined with its internal manufacturing operations, are intended to secure adequate product supplies and favorable costs. Company will continue to provide superior customer service by employing highly qualified sales and customer service professionals and maintaining ongoing training programs.

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