Tiffany & Co. is a very unique entity, offering luxurious jewelry and items. Therefore, it must outsource certain things by specialists, such as appraisers on gold, silver, gemstones, diamonds, etc. It must also obtain diamond extractors in order to get the inputs needed for it's products. This is also the case with silver, gold, and other precious metals that Tiffany uses in it's jewelry.
Tiffany & Co. has expanded into some vertical integration by opening up it's own stores to sell it's items. However, Tiffany & Co. could expand to more retail stores if they are upscale retailers. Tiffany & Co.'s products are too high value and luxurious to sell at typical retail stores such as Dillards, J.C. Penney, Belk, etc. The typical shopper in the common retail stores is not one who will purchase Tiffany & Co. jewelry. Therefore, most of Tiffany & Co.'s sales are online, or in it's specialty boutiques.
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