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Brand equity

The brand of the company is easily recognized because of the company’s little blue bags and boxes. The company has also retained good pricing power within the promotional climate. Due to brand equity, the company has been able to counteract cost of raw material fluctuations while at the same time supporting double-digit increase in both cash flows earnings in the past years (Lazich & Burton, 2012).

Highly profitable

In 2017, the company has improved its gross margin to 14% from the 12 % in the 2016 due to its pricing power. The annual rates of dividends have also grown from $1.20 in 2016 to $ 1.60 in 2017. It has highly invested in technology (Sarsby, 2016). Tiffany has also enhanced its product mix like more silver items and lines that are fashion-oriented being introduced in the company to make it more profitable over time.


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