Pandora is a Danish-owned jewellery manufacturer and distributor. The company is headquartered in Copenhagen, but its main manufacturing is based in Thailand, and it markets its products in over 100 countries.

The company's roots go back to 1982, when Per and Winnie Enevoldsen opened a small jewellery shop in Copenhagen. They often travelled to Thailand to source hand-made jewellery for their store, and after a few years they began to supply jewellery wholesale to other stores. In 1987, the company moved to larger premises, a full-time designer was brought in and the company began manufacturing on a larger scale in Thailand. 

In Pandora’s corporate statement they make clear their commitment to responsible sourcing of gemstones, responsible employment practices, and the idea that the company should benefit all its stakeholders, not least the customers. 

In 2005, the company opened its own dedicated factory in Thailand, taking advantage of the lower labour costs there: jewellery manufacture is, of course, labour-intensive and depends on a skilled workforce. Business was so good the company opened more manufacturing facilities in the same area, and now employs almost 14,000 people in Thailand. Employees have free meals, a career path, and paid holidays.

Low production costs and an efficient supply chain mean the company has been able to grow rapidly, and it is now the world's third largest jewellery company (in terms of sales) after Tiffany and Cartier. The jewellery is priced at the lower end, and the company's signature charm bracelet plays a large role in its success. An attempt to move upmarket in 2011 proved disastrous – the company's sales dropped dramatically as it alienated its core customers. Performance returned after the firm returned to the more affordable mass market....

Case study questions

1. What type of organisation structure should Pandora adopt for its international markets? 

2. What problems might there be in adopting the distribution policy that Pandora currently has? 

3. Why did the move upmarket fail? 

4. What might have prompted the move to franchising? 

5. What does the firm's corporate statement tell us about its focus?