...The global watch Industry is dominated by only a handful of countries, the clear leaders being Switzerland and China. China is the world's biggest watch producer in volume terms. However, Chinese watches are mainly geared toward the lower end of the price range. In the luxury segment, on the other hand, Switzerland enjoys a near-monopoly position. Although the Swiss watch industry accounts for only around 2.5% of global production in terms of unit numbers, it is by far the leading exporter of watches in value terms. The industry is now Switzerland's third largest export sector. At 95%, almost its entire production is exported. The majority of the PESTEL analysis will focus on these two countries. Political: Introduction of anti-corruption measures and restrictions on advertising has resulted in economic slowdown in the watch industry. It resulted in Swiss exports of small watches to china falling abruptly in the middle of 2012. However given the rapid pace at which the Chinese market has developed in proceeding years, the decline in Swiss watches exports should be seen as normalization rather than a slump. Watch exports underwent an abrupt trend reversal in June 2012. This negative trend reversal and shift in demand to more economically priced watches were partly due to political measures. In July 2012, the Chinese administration announced that government officials would in future no longer receive public funds for luxury goods. These measures are primarily aimed at combating...
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...Rolf Butz 10/28/2008 International Business BADM 455 Section 2 Swatch Group 2 Table of Contents Executive Summary .............................................................................................................. 1 Introduction ......................................................................................................................... 5 History ................................................................................................................................. 5 Industry Analysis .................................................................................................................. 7 Company & SWOT Analysis ................................................................................................ 11 Current Situation &Global Market ..................................................................................... 17 Competitor Analysis ........................................................................................................... 23 Recommendation............................................................................................................... 26 Conclusion ......................................................................................................................... 29 Methodology ..................................................................................................................... 30 Exhibits .............................
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...successful? Was it important that the Swiss watch industry company recapture the lower end of the market?why? why not? The outstanding success of a Swiss watch manufacturer during the 1980s was the result of a careful and well-executed marketing plan, brought on by necessity. For years the Swiss were world leaders in the watch industry. In 1974 their worldwide market share was 30%. Then the Japanese actively began to produce and market quartz watches, which the Swiss viewed as a passing fashion. Quartz digital watches were, however, no fad and by 1983 the Swiss share of world markets for watches had fallen dramatically to 9%. The Swiss manufacturer SMH carried out extensive research in its watch markets and carefully analysed patterns of consumer behaviour. Marketing experts advised the company that a turnaround was possible if an inexpensive, good-quality quartz analog watch could be developed, since the market was saturated with digitals. Gradually, a marketing plan was devised and implemented resulting in the introduction of the Swatch in 1984, which has since revolutionised the world watch industry. Based on their extensive analysis of consumer behaviour and lifestyle, SMH adopted a strategy that completely changed the concept of a wrist watch. Watches were to be a fashion accessory first and a watch second. They would also be analog rather than digital. Product planning developed a distinctive quartz analog watch in a wide range of fashionable colours...
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...global market share and to achieve the economies of scale are recommended. The Swatch project was made by ETA, which produced a full range of watch movements and was known as the creator of ultra-thin movements used in expensive watches. This new watch would come in a variety of colored plastic cases and bracelets with an analog face, and ETA had designed an entire production process for Swatch. As the market share of Swiss watches shrunk sharply in the global market, ETA had faced a more and more difficult circumstance. The Swatch project under the code name “Popularius” aimed at rediscovering what the market wanted and then to supply and gain it. While problems were how to gain the potential market and how to adopt different marketing strategies to distribute and promote the new watch. The Swatch project concerned the investigation of Swatch’s potential markets and the feasibility of different marketing mix of Swatch watches and watch movements. The marketing mix of one company generally refers to product, price, promotion and place, which known as the "4Ps". This report would mainly analyze the price and place strategy of Swatch. Product and Price: Types of watches Before 1970s, mechanical watch was popular in the world. The energy 1 systems of these watches were series of gears, and the watch hands were attached on these gears. And Swiss were world renowned...
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... 2000 Rebirth of the Swiss Watch Industry, 1980–1992 (A) “Time is fast running out for the ailing Swiss watch industry.”1 —The Globe and Mail By the end of 1983, Hayek Engineering, a Swiss consulting firm founded by chairman and CEO Nicolas Hayek, was becoming increasingly involved in solving the mounting problems facing the Swiss watch industry, which was on the brink of disaster. Hayek Engineering had initially been recruited by the creditors of the two largest Swiss watchmakers, ASUAG (Allgemeine Schweizerische Uhrenindustrie AG) and SSIH (Societe Suisse pour L’Industrie Horlogere), to formulate a strategy to deal with changing market conditions in 1981. Since then the firm’s involvement with the industry had grown steadily. The firm’s influence had also been increasing since earlier that year, when the banks had agreed with its recommendation that SSIH and ASUAG merge. Although Hayek Engineering was acting as a consultant, Nicolas Hayek, its CEO, would come to have a significant role in supervising the merger and in helping to lead the newly-formed company forward. With the formalities of the merger completed, in December 1983, the new company and its consultants were confronted with a number of new issues. The company faced restructuring challenges and management shifts. But more importantly, it still faced the foreign competition that had decimated the Swiss presence in the inexpensive and middle-range watch segments—the Swiss no longer accounted for...
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...Economics Project by YSR Raghav(14070) Introduction History and Evolution of Time Keeping Machines Watch is a small time keeping machine, historically worn on the wrist or attached on a chain carried in the pocket or around the neck for convenience. Timekeeping has a history dating back to ancient times. The first watch in the 15th century made was spring powered and was strictly mechanical, but with the technological advances this mechanism was replaced by quartz vibrations or electromagnetic pulses. Figure 1 shows the evolutionary era of the various time keeping machines/watches since 1300 BC from the sundial, water clock, to the mechanical wrist watches. Wrist watches became popular in 1920s, after soldiers came back from the World War I wearing military-issue ‘trench watches’, which were later discontinued as their told only the time. However, in mid 1970s, a novel calculator wrist watch came in the market and was widely used. In subsequent decades, pager watches and phone watches, appeared in the market but did not last for long. Then in 2004, Microsoft produced the SPOT watch, a 300 USD device that conveyed instant messages, stock up dates, weather forecasts and broadcasted FM radio signals. After a few years, this watch died due to marketing strategies. So today, the only surviving wrist watch from this cheerless era is in fact the original calculator watch, which currently retails for about 25 USD. In general, wrist watches have been categorized with respect...
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...SWISS WATCHES - Industry Analysis - Student: Calin Mihai - Daniel Master: MBAE AIA E Course Title: Strategic Management Course Instructor: Popescu Cristian Introduction Country Economic Overview Switzerland is a standout amongst the most well off, macroeconomically steady and exceedingly aggressive nations on the planet. The nation has accomplished its aggressiveness in spite of a landlocked area, absence of normal assets and a little residential business sector. Stable political establishments, gradualist strategy changes and financial mix with the EU27 are at the center of Swiss macroeconomic aggressiveness. Swiss microeconomic intensity is driven by an exceptionally solid national business environment over the jewel, and 4 very creative, send out orientated, co-found bunches: Financial Services, Precision Engineering (counting watchmaking), Biopharmaceuticals, and Medical Technology. These bunches have however created notwithstanding a nonattendance of deliberate government group arrangements. To support and update its national intensity, we prescribe the Swiss government execute an incorporated bunch procedure, facilitate its scattered monetary policymakers around an arrangement of national financial destinations, lessen non-duty boundaries to exchange, establish changes to make beginning up and slowing down organizations less demanding, and fit business, assessment and speculator insurance direction...
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... Rikke Nielsen, S1939882 Jan Oestmann, S1956140 Arjen Hofman, S1873083 Table of contents 1. Introduction p. 1 1.1 Abstract p. 1 1.2 Introduction to the company p. 1 2. Analysis of the company and its market p. 2 2.1 Market p. 2 2.2 Performance analysis p. 2 2.3 Product adaptation p. 4 3. Environmental analysis p. 4 3.1 External environmental analysis p. 4 3.2 PEST-analysis p. 4 3.3 Opportunities and threats p. 5 3.4 Internal environmental analysis p. 6 3.5 Strengths and weaknesses p. 6 4. Marketing analysis p. 8 4.1 Segmentation p. 8 4.2 Targeting p. 9 4.3 Positioning p. 9 4.4 Product strategy p. 9 4.5 Promotion strategy p. 10 4.6 Market entry, pricing and distribution p. 11 5. Conclusion p. 12 Bibliography p. 12 Appendix 1. Introduction 1.1. Abstract This report will be centred around the watch manufacturing branch of Swatch. Swatch has been highly successful throughout its existence and therefore it is particularly interesting to know how they achieved this considerable success. The main purpose of this report is to analyze the company of Swatch from a marketing perspective. This analysis is based on the theories from the books Essentials of Global Marketing by Svend Hollensen(2008) and Principles of Marketing written by Philip Kotler and Gerry Armstrong(2006). Additional research was conducted throughout the internet. Each chapter...
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...Presented by Jeannine Komonosky Long Le James E. Salter Copyright © 2005 SalterQuest.com. All Rights Reserved. Introduction • Watch Industry • Key Brand Components • Current Brand Strategy • Image Associations • Perceptual Map • Competitive Position • Industry Analysis • Opportunities & Threats • • • • Strengths Weaknesses Brand Report Card Revised Branding Goal and Strategy • Revised Brand Messaging Copyright © 2005 SalterQuest.com. All Rights Reserved. Watch Industry • History – Industry Grew up in Geneva – Swiss Watches have a Worldwide Reputation for Quality • Technological Developments – Mechanical Watches have 100 to 130 components – Light-emitting diodes (LED) – Liquid Crystal Display (LCD) – Quartz Analog • Brands now Compete on: – Features – Product Attributes – Positioning Copyright © 2005 SalterQuest.com. All Rights Reserved. Key Brand Components • Early Publicity Advantages • Branding Challenge • Importance of Marketing • Role of Collectable Copyright © 2005 SalterQuest.com. All Rights Reserved. Current Brand Strategy • Early Brand Strategy • Current Brand Strategy Copyright © 2005 SalterQuest.com. All Rights Reserved. Image Associations Corporate Success Symbol Swiss Made Luxury Market Wealth in Travel Prestige Sports The World of Rolex Luxury Adventure James Bond 007 Disposable Income Copyright © 2005 SalterQuest.com. All Rights Reserved. Perceptual Map ...
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... | The Swiss watches’ company is present all over the world. It has successfully managed environment changes, as well as it resources and competences. This document seeks to analyze the external and internal forces that have influence on the company, in order to determine strengths, weaknesses, threats and opportunities. Nevertheless, the core of this work it to diagnose the interaction between the above, and the Marketing and Communication strategies that Swatch implements nowadays The Swiss watches’ company is present all over the world. It has successfully managed environment changes, as well as it resources and competences. This document seeks to analyze the external and internal forces that have influence on the company, in order to determine strengths, weaknesses, threats and opportunities. Nevertheless, the core of this work it to diagnose the interaction between the above, and the Marketing and Communication strategies that Swatch implements nowadays CONTENT Corporate Presentation 3 External Analysis 9 PESTEL 10 Political 10 Economical 10 Social 10 Technological 10 Ecological 10 Legal 10 Porter's 5 Competitive Forces 12 Mc Kinsey matrix 14 Internal Analysis 16 Value chain 17 Infrastructure 17 Human resource management 17 Technology development 18 Procurement 19 Operations 20 Outbound logistics 21 Marketing and sales 21 Service 22 Swatch in deep: Marketing Mix 23 SWOT Analysis 26 Competitors Analysis 29 Festina...
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...ENVIRONMENTAL SCANNING 2.1 Company History AWC is a Swiss company founded in May 2012 by Daniel Niederer. The key concept was to combine the efficiency of Japanese movements and Asian manufacturing with the refinement of European design. Designs are inspired by the industrial revolution and challenges traditional watchmaking with their vibrant colors and bold outlook. Their latest collection (“SevenFriday”) consists of the “P series” and “M series”. The key difference between the series is that the M Series uses discs rather than hand to indicate the time. Even though their brand is Swiss, their watches cannot be termed as “Swiss Made” as they contain Japanese mechanical movements. 2.2 PESTLE Analysis The assessment of macroeconomic factors is useful for us to identify the threats and opportunities encountering AWC. The factors of the PESTLE model relating predominantly to AWC will be used for this assessment. Political and...
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...The Swiss Luxury Watchmaking Industry A general overview and a closer look at the celebrity endorsement and sponsorship communication strategy used by the leaders. Karine Gautschi January 2005 HEC Lausanne – Hautes Etudes Commerciales, MIM – Master of International Management Thesis Director, MIM: Professor Stéphane Garelli Expert, Omega: Jean-Pascal Perret Table of Contents 1 2 INTRODUCTION .............................................................................................................. 1 LUXURY WATCH INDUSTRY: A SHORT OVERVIEW .................................................. 3 2.1 2.2 3 DEFINITION AND PRICE SEGMENTATION ........................................................................ 3 LUXURY BRANDS AND THEIR POSITIONING ..................................................................... 5 ANALYSIS OF THE LUXURY WATCH INDUSTRY........................................................ 7 3.1 THREAT OF NEW ENTRANTS .......................................................................................... 9 Capital requirement ............................................................................................ 9 Brand recognition ............................................................................................... 9 Distribution........................................................................................................ 15 3.1.1 3.1.2 3.1.3 3.2 BARGAINING POWER OF BUYERS .........................................
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...The Swiss Luxury Watchmaking Industry A general overview and a closer look at the celebrity endorsement and sponsorship communication strategy used by the leaders. Karine Gautschi January 2005 HEC Lausanne – Hautes Etudes Commerciales, MIM – Master of International Management Thesis Director, MIM: Professor Stéphane Garelli Expert, Omega: Jean-Pascal Perret Table of Contents 1 2 INTRODUCTION .............................................................................................................. 1 LUXURY WATCH INDUSTRY: A SHORT OVERVIEW .................................................. 3 2.1 2.2 3 DEFINITION AND PRICE SEGMENTATION ........................................................................ 3 LUXURY BRANDS AND THEIR POSITIONING ..................................................................... 5 ANALYSIS OF THE LUXURY WATCH INDUSTRY........................................................ 7 3.1 THREAT OF NEW ENTRANTS .......................................................................................... 9 Capital requirement ............................................................................................ 9 Brand recognition ............................................................................................... 9 Distribution........................................................................................................ 15 3.1.1 3.1.2 3.1.3 3.2 BARGAINING POWER OF BUYERS .........................................
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...Rolex is in a different league, up there. But this positioned Omega, inside and outside, totally. — Nick Hayek, CEO, Swatch Group On the afternoon of March 15, 2011, the only day closed for visitors during Baselworld, the major global watch and jewelry trade show held in Basel, Switzerland, Nick Hayek, the CEO of the leading Swiss watch manufacturer Swatch Group, completed a series of informal meetings with his watchmaking counterparts. After all that had been said behind the glamorously showcased watch collections, Hayek lit a cigar to reflect on the discussions’ impact on his watchmaking empire. The late Nicolas G. Hayek (hereafter Hayek Sr.), the charismatic founder of the Swatch Group (and Nick Hayek’s father) who passed away nine months ago, would have applauded the group’s exceptional 2010 results which encouraged the company to set a sales goal of 10 billion Swiss Francs (CHF) within the next four to five years (see Exhibit 1 for the group’s key financials).1 Given how well the Swatch Group had weathered the recent difficult years for the industry, Hayek was not surprised by the 2010 numbers. He attributed this success partly to the group’s vast range of 19 watch brands serving all consumer segments, and to its solid Swiss industrial base which allowed the group to feed the latest technology into its timepieces. The company’s results had...
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...Swatch: The One to Watch Every serious entrepreneur endeavors to create a product or service that will revolutionize the known world. Ingenuity ignites the flame and perseverance fuels the fire while mogul-hopefuls anticipate consumer satisfaction. Nevertheless, strategic efforts are an unrivaled asset no matter how great the idea. Since the boom of modern-day business, industry experts have refined how-to-make-a-buck to a complex science that analyzes the who, what, why, when, where, and how of ensuring profitability. A concept known as “The 4 Ps”: sums up a snapshot of their findings: Product, Price, Place, and Promotion (insert textbook reference here, i.e, Norris, 2010). Successful companies apply these principles with a finesse that can lead to products whose market shelf life is timeless. Such is the case with Swatch. The following is an analysis that examines how the effective employment of this marketing mix (The 4 Ps) revitalized this company and helped it reclaim its place as a formidable contender. Product The most basic element of supply and demand first begins with a product (or service). The Swatch company’s central component is quite simply a timepiece, also known as a wristwatch. Created in the 1980s, this product’s appeal entailed a watch that was lighter in weight, mirroring the functionality of its contemporaries, distinguished by boldness, fun, and flair (Swatch, 2010). However, among several factors that contributed to its broad consumer appeal...
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