... the Swatch Group still sticks to manufacturing products in Switzerland, the Swatch Group’s home base. Expensive labor in Switzerland makes the costs of producing a timepiece outrageous, which makes the Swatch Group gradually lose its competitive advantages. In order to keep its leading position in the world, the Swatch Group needs to consider moving its manufacturing to other cheaper countries. The “Swiss Made” label plays an important role for the Swatch Group, which can be regarded as the assurance of quality. The “Swiss Made” label regulates that at least 50% of components should be manufactured in Switzerland. To keep the “Swiss Made” label, Swatch only can move low skilled and unnecessary activities, such as the production of batteries and cases, to a low cost production location and keep the required sections in Switzerland. With over a 1.2 billion population and a 487 million labor force, India is considered as one of the world’s fastest growing economies. Compared with 58 dollars/h of production labor cost in Switzerland, the production labor cost is around one dollar/h in India. Considering the huge domestic market and low-cost labor, India is a suitable option for Swatch to locate its production. At the same time, Titan, an Indian company, is looking for key foreign partners to learn designs and technology. Having cooperated with Timex, Titan has the relevant experience and the ability to satisfy the requirements of Swatch. Thus, it is feasible for Swatch to establish...
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...MISZTAL DANIELA BEYERSDORFER The Swatch Group Most people of my age would probably never have bought an Omega. Their father would wear one, and their son would own one. We have therefore lost part of this generation, definitely. — Stephen Urquhart, President, Omega In 2006, when I told the press before the Olympic Games in Turin that the objective of Omega is to overtake Rolex, its natural competitor, people were smiling and saying that 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...
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...The SWATCH Project: A Case Report By错误！未找到引用 源。 Candidates Zhang Xingquan, Guo Jun, Xiao Jie, Zhang Yingying, Kong Lingxiang 2006 World Economics, Faculty of Business Hubei University Jun 12th 2008 This report details analyzing the market situation and marketing mix of Swatch. Possible marketing strategies, and benefits and risks, are explored. Finally, the type "C" Swatch should price under $30, and an exclusive distributorship should be adopted, are concluded. Furthermore, to enlarge Swatch's 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...
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...SWOT Analysis. Strengths:- Swatch Group LTD., which is based in Switzerland, is one of the world’s largest companies which as of 1998, produced about a 119 million watches with consecutive yearly sales of over 3.2 billion Swiss francs {1}. This shows how strong and popular the company is since the late 90’s. They have proved time and time again that their quality and durability are splendid which also goes to say, the brand name and image associated with it are top notch. The Swatch Group does not only deal with watches but also different products such as components, quartz and mechanical movements and other products which are manufactured and distributed by them. They also take interest in producing innovative designs so that their customers are given the best of the best and not stuck with old and out-dated designs which are also provided by other companies such as Tag Heuer, Tissot or Timex. It shows that they are trying to keep good relations with their customers which, in turn will give them a strong financial position in the market and is also cost advantageous to them and also helps them build a good reputation for themselves. {2} Weaknesses:- The absence of certain strengths can be considered as a weakness. Considering all the competition the world faces today plus the credit crunch coming into this factor, coupled with depreciation creates a lot of problems. Problems could arise internally within the company or even externally considering how geographically...
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...its time 6 Market Segmentation Market segmentation is the process of dividing a market into distinct groups of buyers with similar requirements. Goods can no longer be produced or sold without considering and understanding customer requirements and recognizing the heterogeneity of those needs.(Michel Wedel 2000). Steps involved in market segmentation, targeting market and market positioning are as follows; 6.1 Segmentation in the B2C Market Socio-demographic, behaviouristic, and psychographic variables are used to identify the market segment. 6.2 Socio-demographic Variables This divides the group into age, sex, gender, geography, family life cycle, income, education, events, religion and social class. Swatch product line is for both men and women between the age of 15-19, 20-24 and 25-34 who belongs to and income group varying from £12000 to £45000. It could be students, professional, homemakers and set of stylish people who like a creative and innovative approach. Figures from Kidd 2007 suggest that the group from 24-35 have the highest spending power in the market. And also women in UK are increasingly purchasing watches for them selves and for their partners. 6.3 Behaviouristic Variables These variables reflect the behaviour of the customer towards a specific product which can be the purchase readiness, ability and experience, loyalty and shopping habits. Swatch product line is designed for people who desire to try something innovative and be able to experience their...
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...Swatch digital impact issues Swatch is a brand name for a line of wristwatches from the Swatch Group, a Swiss conglomerate with vertical control of the production of Swiss watches and related products. In 1984, Swatch was conceived and it was introduced to the market in Switzerland in March 1985. Swatch uses several software like Microsoft office, Adobe Creative Suite and other more technical software for the watches design and production. Swatch has its own website: http://www.swatchgroup.com where a lot of information is available: • The investors • The job seekers • The customers • The media and press. This website is very integral because it brings together many actors of the company. The website is also offering the “Swatch Group Info Service” which allows everyone to get information easily and efficiently about all the services of the company. Swatch is also present on Facebook, Swatch Watches has more than 650000 fans around the world and has a special page for every country, for example Swatch Türkiye has 220000 fans. Swatch is also on Twitter. Swatch has also a smartphone application: Swatch uses the main social networks for its communication, the creativity is a pillar for Swatch and its communication has also to be creative, the digitals tools of today offers to Swatch a lot of way to develop his image through the world. Swath communication: In its communication Swatch put the environmental question at the first plan: ...
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...Swatch Group Ltd. Have a minute? Course: International Marketing Lecturer: Dr. J.T. Bouma Case: Swatch Group Ltd. Date: March 16th, 2010 Group: 13.3 Students: Dennis Hesling, S1892444 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...
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...Monopolies when Everyone Else is Merely Competing. HarperBusiness, New York. * Glasmeier, A. (2000). Manufacturing Time: Global Competition in the Watch Industry, 1795-2000, * Morrison, A. (1999). Swatch and the Global Watch Industry. Ivey Case #9A99M023. University of Western Ontario. * Pictet. (2003). The Watch Industry: What makes it tick? Geneva. Pictet & Cie. * Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press, 1998. * Porter, M. E. (1998). On Competition. Harvard Business School. Boston * Porter, M. (1976). Interbrand Choice, Strategy and Bilateral Market Power. Vol. 146, Harvard Economic Studies. Cambridge, MA. Harvard University Pres. * Roberts, J. (2004) The modern firm, organizational design for performance and growth. Oxford University Press. Oxford. * Thomson, N; Baden-Fuller, C. (2010). Basic strategy in context: European text and cases. Chichester, Wiley. | | * Zaugg, K. (1991). Swatch after swatch after swatch. Electa, Milano. Articles * Abrami, R; Kirby, W; McFarlan, M; Wathieu, L; Wang, M. (2007). Fiyta, The Case of a Chinese Watch Company, Harvard Business School. * Anwar, T. (2012). ,Selling Time: Swatch Group and the Global Watch Industry. Thunderbird International Business Review. * Barrett, M. E. (2000). Time marches on: the...
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...SWATCH Watch U.S.A.: Creative Marketing Strategy “Vision is the art of seeing things invisible” - JONATHAN SWIFT INTRODUCTION As speaker after speaker paid tribute to the extraordinary skills that had earned him the award of “Marketing Executive of the Year”, Max Imgruth, President of Swatch Watch U.S.A., grew more and more uneasy. Fully confident that the product that changed the watch industry forever, the Swatch watch, would enjoy continued success, Imgruth nonetheless left the need to change gears, The competition, which was at first slow to react, had begun to implement strategies that stood to erode Swatch’s position. Gazing from his privileged plane on the dais, Imgruth saw an audience that was content to rehash past successes for a night, which was nice, but no at all his style. Imgruth had recently guided his company through a fast paced and, some would say, controversial diversification program. Having already achieved spectacular success with the Swatch watch, Imgruth spearheaded a plan to establish Swatch as a total fashion enterprise. This move was accompanied by a good deal of skepticism from colleague and competitor alike. His next objective was to make sure that this year’s # 1 marketing executive did not become one of the decade’s more memorable disappointments.1 BACKGROUND-THE SWISS WATCH INDUSTRY 1985 was a good year for the Swiss watch industry. The number of finished watches shipped abroad rose 41 percent to 25.1 million and the value of watch exports...
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...SWATCH WATCH U.S.A.: CREATIVE MARKETING STRATEGY ABSTRACT Switzerland was an industry leader in the watch market up until the 1970's when the digital watch was introduces to consumers. The digital watch was inexpensive to manufacture and could be produced in mass. It created a whole new market by making watches inexpensive enough for all classes of people. The Swiss did not respond to this new competition and began to lose their market share. The Swiss watchmakers still produced high end watches for the wealthy, but did not compete for the lower end market. In the 1980's the Swiss watchmakers began to realize they needed to change their business model to fit in to the new global market place. They needed to not only change their views of the market but the infrastructure of watch manufacturing. In order to compete on a global level they needed to improve their technology, design products that would appeal to new markets and be able to compete with other companies both in quality and cost. The development of Swatch® allowed one company, the Swiss Corporation for Microelectronics and Watchmaking Industries (SMN), to do just that. SMN developed a product that was appealing to a younger target market. Their new design, distribution and production strategies created a niche market that became popular worldwide. The company developed an advertising campaign that was new to the watch industry and was strongly directed at a younger audience. SMN was extremely successful...
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...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 30 Casio 31 Seiko 33 Rolex 35 Corporate Presentation Swatch Swatch is a company that belongs to Swatch Group. Swatch is a manufacturer and distributor of watches; they have a vertical integration with the suppliers of watches and other...
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...Trident University International ACC501 Case Assignment #1 Core Faculty: Dr. Timothy Brown Introduction The purpose of the following paper is to address common terms used in accounting, to include Generally Accepted Accounting Principles (GAAP), double entry accounting, historical cost, accrual basis vs. cash basis accounting and current assets and liabilities vs. non-current items. I will also describe the general organization of the following three companies; Apple, Inc., Swatch Group, and Nikon. In doing so, I will attempt to determine and demonstrate what is more useful – net income or cash from operating activities. Part I The field of accounting can be understood as the art of analyzing and interpreting data. Every organization uses a form of accounting in its day-to-day operations. While some may use it knowingly or unknowingly, nonetheless, accounting is an indispensable method in understanding any business/endeavor in today's global marketplace. It is the means of providing the financial information of any given organization. It summarizes all the company’s transactions and provides a clear image of the business. Accounting keeps the record of all financial reports which is very important for all the managers and stakeholders, such as shareholders, creditors or owners. Among the terms that are necessary to be familiar with and understand are the following: Generally Accepted Accounting Principles (US GAAP) – Accountants use Generally...
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...TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Case - the Swatch Group In: Business and Management Case - the Swatch Group The Swatch Group Case Resolution Team 4: Key Information • There are a series brands aimed at different market segments at low, medium, high and luxury. • Market share in Europe and China over a third of it and competing in every segment in which Swatch Group with its brands. • Distribution via retail channels and own stores. • Investment and development in new technology. • Successful plan of positioning their products as generators of emotions. • Rolex and other competing brands are perceived and maintain better image in the market, which makes them a very strong and complex competitors. Problems or Challenges • Develop a successful and effective strategy that improves positioning the Group to raise the prestige of their brand (Omega) and their profitability. • Prevent the problem that existing customers would not be willing to pay more if prices raise. • If the brand replaces Rolex as a symbol of luxury in a mass market, avoid existing customers react adversely, as well as make that new customers receive the message of the brand value. Solution • Maximize our product strategy focused in "Generate emotions" in the advertising of the brand. • Win market share to Rolex as a luxury and exclusiveness brand...
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...Swatch Group 1 Professor: 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 ...
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...Advertising Professor Christin Walth Jenessa Carder, Chia-Ying Chen, Fango Lin, Yi-Hsuan Su, Ya-Ling (Claire) Wang, Winette Yee May 5, 2010 Swatch: The Global Watch The IMC Plan in Brazil, Japan, and Switzerland 1 Statement of Purpose Swatch (‗Swiss‘ + ‗watch‘) watches, created under the management of Nicolas Hayek, are fashion statements and pop-culture icons. They feature witty, outlandish designs that use intense colors and are youthful, provocative, stylish, and unpredictable. The mission of the IMC campaign is to tie the brand image with creative art in order to tell the brand story, strengthen Swatch‘s brand identity among the target audience (young students or professionals, aged 18-25) globally, and consistently incorporate different and relevant mediums (print ad, website, MTV – user-generated content, and online communities) to reach the target audience. The multi-country marketing analysis of The Swatch Group will aid in developing the IMC strategy and campaign for Swatch‘s CreArt (‗creativity‘ + ‗art‘) Collection in the following three countries: Brazil, Japan and Switzerland. When reading this, please be aware that Swatch did not impose an integrated marketing campaign in Brazil; rather, they only held one event and communicated to customers through Twitter. Therefore, the Brazil section is composed mostly of what The Swatch Group should do in order to meet their objectives. Furthermore, the cultural dimensions and components that will affect consumers shopping intention...
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