Business Strategy- Tiffany

Tiffany & Co is in the jewelry industry. This is evident when the author of this article identifies it like the U.S jeweler. Also, Benard Arnault, in a statement, says that Tiffany is a significant icon in the jewelry sector. Additionally, the article mentions Tiffany’s dependence on rings and mentions wedding people as their customers. Therefore, the company operates within the jewelry industry.

There are two main external environment factors that the article mentions. One of them is its customers. In a statement, Bernard Arnault states that they are optimistic about the company’s growth by remaining at the forefront of its customers’ achievements and memories. It implies that the new management will value its customers as an external environment that will accelerate its growth. Additionally, the article states that LVMH will mainly consider the younger shoppers as the company’s customers. It means it recognizes who the potential customers are.

Still, on the customers, the article says that Mr. Ledru and Alexandre Arnault, the newly elected administrators of the New York Company, already know the demographics of the U.S. market.   Understanding a population’s demographics is essential because a company tailors its products according to the population, capturing a bigger market. 

Another mentioned external factor is the covid-19 pandemic. The article points out that the pandemic greatly affected the company to the extent of Bernard Arnault threatening to pull out its acquisition. The pandemic falls under external macro factors that the company could not have controlled. However, the company recovered, which saw a sales increase of 2% during the holiday. It implies that the company devised strategies for controlling the effects of the pandemic.

The article has also mentioned two major internal environmental factors. One of them is the management of the company. It is an internal factor because it only affects the company and not the industry. After the company’s acquisition, Anthony Ledru is anticipated to be the company’s new CEO. Alexandre Arnault will be the new executive vice president of the communications and product department. The company’s chairman will be Michael Burke. Those who held the same positions before the company was purchased are expected to depart.

The second internal environment factor is human resources. Mr. Ledru says that he will hold a virtual hall with the employees to enlighten them on the new direction the company has taken. Employees are an essential part of an organization’s environment, and for this, the new management is extensively investing in them. During the meeting, employees will be asking questions and receiving answers from the management. Perhaps the primary reason is to prepare them for the recent change to cope with it effectively. Besides the two internal factors, the article has also mentioned the company’s assets as another factor. This includes the products the company offers, which is the pieces of jewelry.

According to the article, the company’s future strategy may involve lessening dependence on rings, working on additional products, and making the company more relevant to younger shoppers. The strategy entirely involves cross-selling more products, especially when few people are getting married. This is an excellent move as it will also attract diverse customers to the company. Given that the company has new strong management, is investing in its employees, and already understands the U.S. market, I would recommend implementing the new strategy as early as possible. The factors are already favorable, and even the company has recovered from the pandemic. Therefore, it should start the implementation because if postponed, the future is uncertain, and it may not be able to do it after.