Tiffany & Co. 2019

アブストラクト

On October 15, 2019, Alessandro Bogliolo, Tiffany & Co.’s CEO received a buyout offer from LVMH, the French leading luxury group for the entire capital of Tiffany. This offer occurred whereas the American jeweler was on a recovery path: after reaching record sales in 2014, amounting $4,250 million, Tiffany’s sales decreased of 6% from 2014 to 2016. During this period, Tiffany was facing challenges both internal and external. The most critical points were that Tiffany lost its appeal for the new generation and that Tiffany was much more suffering from the external factors than its competitors - which were for most of them part of luxury groups. However, like Tiffany started to tackle some of its issues, its sales got back on a track of growth from 2017. Nevertheless, considering that the environment remained still delicate with growing uncertainties. Alessandro Bogliolo knew that it could eventually impede Tiffany’s capacity to fully reinforce its position in the jewellery market in the future and 2019’s sales were expected to be disappointing. That’s why he felt that the proposed takeover of LVMH represented a decisive dilemma: was Tiffany & Co. able to succeed in the jewellery market in the coming years on its own? If so, did Tiffany need to elaborate and implement a new strategic plan? Or, should Tiffany & Co. accept LVMH's buyout offer? But, inside a group will Tiffany & Co. be able to keep its identity or will it lose its essence and singularity? This case study will start by exploring Tiffany’s history and the evolutions of the luxury jewellery industry in the recent years, detailing its new trends and major players. It pursues by analyzing Tiffany’s difficult time (2014-2019). Finally, it will present the context of the LVMH’s proposal and how Tiffany could answer it.

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