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Transcript
SWATCH CASE
The swiss watch industry is the biggest in the world.
The swatch brand now a days is the most important
brand in the world.
Swatch was created by Nicolas Hayek who contributed to
the Swiss`s economy grew up.
STRENGTHS
 High quality.
 Increasing the technology; they are going to save
money because the processes are gonna need less
employees and capital.
 The Swiss watch industry created the first reliable
pocket watch, and was the most important company in
this industry.
 They created a "Swiss made" label (becoming a symbol
of quality, style and prestige).
 Swiss proved process technology (setting up the
world's first mechanized watch factory)
 They introduced complicated watches.
 Swatch Group, opened 61 new free-standing Swatch
stores.
 They had the 14% share of the world market.
 The company is Swiss and held 80% of the world’s
total production
 They have the biggest production of the world vs. the
other quality countries such as Japan, France etc.
 Many watchmakers started to improve in more
technology and develop in their creations.
 The noticeable trend was entry of the fashion house
designers.
 Limited edition watches, special events, and the
quarterly swatch world journal also contribute to
reinforce the value of the brand.
 Employees has spent generation in the factories
control by the Swatch group.
 34 million Timepieces are produced in Switzerland.
 Swiss industry stood apart in the upper market range.
 Swiss watches sell all around the world.
 Swatch change to freshen up the brand, cheaper and
change some metals
 Swatch used marketing with famous people.
 The price has the average 50% lower than its main
competitor Rolex omega.
WEAKNESSES
 The only strategy that Swatch Group might be
summed up to mantain in the market, as the same way
it’s been doing because it can’t grow more.
 The company needs very specialized employees, who
are difficult to find.
 Each piece of each watch needs very long periods of
fabrication.
OPORTUNITIES
 The Swatch Group is present in more than 50 countries.
 It generates, aproximatly, 20’000 jobs.
 This group has other marks, being one of the biggest




companies of watches in the world.
The 95% of its production is exported to all the world.
At the end of the 2007, the watch industry increased its
profits.
This industry was accepted by all the European market and
at the beginning also by the U.S.
Swiss invested in education and training, establishing
several watch making academies at home and watch-repair
schools in major foreign markets.
THREATS
 English competitors.
 Lower prices of the competitors in the world.
 The cell phones and personal computers -included
clocks-, so they decreased the sales of the watch
industry.
THE SWATCH GROUP IN THE
WORLD
AVERAGE OF SALES
PARETO’S LAW
 The main problem of the Swatch Group is that since
the year of 1974, the sales of the group began to
decrease steadily. (marketing positioning)
 Albeit, in 1983 in Zurich, was born the first line of
watches “Swatch”, that could be sold at the same price
of those of the japanese. The company offered a very
high quality and amazing design, having an excellent
position in the global market.
 Then, the group divided its production in 3 sectors,
depending the prices, one with prices lower than 50
dollars; another one between $50 and $299, and a
luxury line with prices higher than $300.