Potential Threats - external environment

Tiffany & Co. sells products that are considered a luxury good to the typical consumer.  Since these goods are not considered necessary, their product sales will tend to suffer in a time of economic decline.  This is a potential threat due to the current state of our economy.  Most people will tend to budget their money during hard economic times and purchase goods that are necessary for survivial.  Thus, purchases such as jewelry will be postponed to a later time.