...Harvard Business School 9-400-087 June 12, 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...
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...is anything which is deep seated in customer’s mind about the brand. Brand should be associated with something positive so that the customers relate your brand to being positive. Brand associations are the attributes of brand which come into consumers mind when the brand is talked about. It is related with the implicit and explicit meanings which a consumer relates/associates with a specific brand name. About Rolex, if we consider the upper portion then the brand association will be: 1. Watch. 2. People. 3. Sports. 4. Successful. 5. Highest quality. 6. Reliability. 7. Durability. 8. Serviceability. 9. Convenient. 10. Unique. 11. Prestige. 12. Word of mouth publicity. 13. Price. 14. Luxury. 1. Watch: If any customer think about the brand Rolex, the picture will be spotted in his or her mind is watch, which represents aristocracy. It is being fixed in their brain or even soul, because the brand Rolex is representing themselves as a brand of watch for many year. 2. People: Different types of people use it to reflect their strength. Top athletes are wearing it to show their toughness, robustness and skill. Rich and high class people wear it to show their wealth and class. Man also use it to show their manliness. 3. Sports: Rolex are associated with different kind of sports like Golf, Sailing etc. So, customers also think this brand in sporty side. 4. Successful: Rolex was rewarded with the world’s first...
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...of disaster when the Swatch had been introduced 10 years ago; the phenomenal success of the Swatch was considered by many to have been a key factor in its resurgence. At the management level, much of the credit for the turnaround had been directed toward Nicolas Hayek, CEO of the Societe Suisse de Microelectronique et d’Horlogerie (SMH), which controlled nine global Swiss brands including Swatch. Over the past 10 years, Hayek had led the way for the success of the Swatch by committing SMH to a business strategy that in many ways defied industry wisdom about how global watch companies should be run. This strategy was based on a strict commitment to vertical integration (the company assembled all of the watches it sold and built most of the components for the watches it assembled), decentralized marketing (each of SMH’s nine brands had total authority over product designs and marketing), and portfolio management (SMH’s goal was to have a competitive brand in every price segment in the market). Industry Background Prior to the 1950s, watchmaking was a craft that required the skills of...
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...Prepared by Batch Ref. No. Prepared on Manohar M. M. Iyer XMBA – 19 VAS2010XMBA15P005 December 20, 2012 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand Prepared by: Manohar M. M. Iyer, VAS2010XMBA15P005 Page 2 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand Contents 1. Disclaimer note: ........................................................................................................................................4 2. Introduction ..............................................................................................................................................5 3. Brief understanding of the case study .......................................................................................................6 4. Analysis of Indian Consumer Behaviour & Premium watch purchase decision ...........................................7 5. Building the XYLYS brand in India...............................................................................................................8 6. End note: ..................................................................................................................................................9 Prepared by: Manohar M. M. Iyer, VAS2010XMBA15P005 Page 3 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand 1. Disclaimer note: This document is prepared purely...
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...BELJOHN SEBASTIAN THOMAS HISTORY OF WATCHES 1485-Leonardo-da-vinci sketches a fuse for a clock. 1500’s-Germeny-Peter Henlein creates the first pocket watch. Early 1600’s-Forms watches became popular. 1735-watch makers began using enamel on the dials. 1820-Thomas prest registers a patent for self winding watch. 1914-Eterna introduces the first wrist watch with an alarm. 1929-First anti magnetic watch created by Tissot. 1999-Casio innovates with the first wrist watch with a built in global Positioning system. Before wrist watches become popular in the 1920’s, most watches were pocket watches, which often had covers and were carried in a pocket and attached to a watch chain or watch fob. Indian watch Industry began in the year 1961 by HMT (Hindustan machine tools ltd). INDIAN WATCH INDUSTRY @ GLANCE The first Watch model manufactured by HMT was JANATA Model. HMT was the leader in the market till TITAN Came. Indian Watch Buyers are very price sensitive. The major barrier to the entry to Indian watch market is to build a brand image and price competitively. SEGMENTATION OF WATCH INDUSTRY SEGMENTATION BASED ON PRICE OF WATCH Mass (Rs.350-600), INDUSTRY Popular (Rs.600-900), Premium (Rs.900-1500), Super-premium (Rs.1500-8000) Connoisseur segments (above Rs.8000) BASED ON USER CATEGORY SEGMENTATION (Cont…) Men’s watches Women’s watches Youth watches Kids watches Sports watches Titan INDIAN BRANDS MAJOR PLAYERS...
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...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 and designs. New models were introduced rapidly and older ones quickly dropped. Because Swatches were sold as fashion accessories...
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...Ref. No.: BRM0011 Watches are available in different varieties with most of them performing multiple functions. There are analogue watches, digital watches, LCD watches, quartz watches, LED watches, mechanical watches, jewel watches and diving watches. Stream Watches (Stream) is one of the most popular diving watches sold across India. Currently, Stream is very much concerned about its ability to retain its position in the face of strong competition from other national brands. Even though the watches manufactured by Stream are of high quality with a wide variety of functions and reasonable prices, they are not able to make as much profit as they should. Moreover, the weak economy and emergence of severe competition from several large brands has directly affected Stream’s profits. This case study was written by RagaSravanthi Vemulavada under the direction of Dr. V. Srinivas, IBSCDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was prepared from generalised experiences. © 2009, IBSCDC. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. Do No t Watches designed for underwater diving are popularly known as diving watches, which can remain water resistant with a depth range of 50 metres–300 metres as indicated on the dial. Generally...
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...The Swiss accounted for 80% of the world’s total watch production and 99% of all U.S. imports. 1951-Emergence of Low Cost Competition. U.S. Time introduced a line of disposable watches bearing the Timex brand name. Timex was selling its watches through a variety of low-priced outlets such as drugstores and discount houses. By the end of the 1950s, one out of every three watches bought in the United States was a Timex, 1970 –By 1970’sTimex was selling more watches than any other manufacturer in the world. 1970’s- During the same time, several Japanese companies like Hattori-Seiko and Citizen—had taken over the Asian market and were trying to cover up Europe and North America. As a result, the Swiss share of the global market declined, from 80% in 1946 to just 42% in 1970. The Introduction of Quartz Technology * Made use of quartz and integrated circuits * Provided Accuracy, more sophisticated functionality, more features like day & time·, Digital display, Analog watches. * Cheaper in cost of manufacturing. * A wide Price range, starting from $8 to $20, today even below $5. * Introduction of analog watches that used gold or silver plating to mimic the traditional appearance of their more expensive, Swiss-made mechanical counterparts * By 1984, more than three-fourths of the watches sold around the world were based on quartz technology. * By 1986, Citizen had become the overall global leader in both movement and finished watch production volumes The Swiss...
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...Introduction: Smartwatches will be the new technology that changes the world. The biggest thing is that it is wearable and the first of its kind. It’ll be one of the first affordable wearable smart devices. It will also change the way we communicate in many ways. There are several impacts of new technology and smart devices, smartwatches are changing the world as we know it. Summary of Key Findings: Smartwatches are one of the first series of smart devices that is wearable. It’s not big or heavy like other devices. Most devices are hand-held or bigger, but with smart watches you can wear them on your wrist and it is no bigger than a watch. This can free your hands and still carry on a conversation. Smartwatches are going to change the way we communicate. You can make phone calls from your wrist and you can send premade texts and talk just like a phone. With smartwatches you can call anyone from your wrist. You can take pictures and save them to your devices from the smartwatch. You can also do video calling all from this little wrist watch. It’s changing the way we can communicate and it cost effective. Smartwatches are one of the first affordable wearable smart devices. Most smart devices run from $400.00 or more. The smartwatch is very reasonable it starts from $100 to $300. You can get them from most electronic stores like Best Buy. It is small, affordable, and caries most of the same features as your phone. Conclusion: Smartwatches are changing the world...
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...behind this report is to define the organizational behavior of the selected company and by employing some academic references and research methods; it is tried to estimate the nature of the organizational behavior and its probable connotations in case of business administration. In addition to this, the report includes some individual views which have helped to reflect various aspects of the report in a wider standpoint. Comprising these individual viewpoints in this report has been made with the intention of determining the possible guidelines for existing business in near future. Outline of the company Billabong International Limited is a leading clothing retailer who is also related with the retailing process of accessories like watches, backpacks, skateboard, and snowboard products which generally comes under other brand-names. The inception year of the company is 1973 and was established by Gordon and Rena Merchant. However, the company was very firstly recognized in Australian Securities Exchange on 11 August 2000. According to the statically employee survey 2013, the number of employees of the company was approximately 6000. With the growing trend, the company continued to grow further acquiring new brands and retail outlets like Kustom, RVCA and Von Zipper. Having it’s headquarter in Queensland in Australia; the company has always maintained developing nature for creating a positive image in the market. In 2013, the overall revenue of the company was around...
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...development is to create something where there was nothing before - what Casio calls going from "0" to "1." By creating totally original products, Casio strongly believes that they add fun and convenience to daily life and pioneers new cultural trends. "Demand-creating" products, which Casio’s opinion will create markets of their own, produce economic and technological ripple effects. Strategic advantages of Casio in product development are realized by focusing on the following two core areas: 1. Superb product planning driven by accurate assessments of people's needs 2. Superior technologies to make products that meet those needs Competitive strategy in the luxury watchmaking industry: Per Michael Porter, the three fundamental competitive strategies for outperforming competitors in a long term perspective in luxury watch market are (i) differentiation, (ii) overall cost leadership and (iii) focus. These strategies are defined using the criteria of strategic advantage and strategic target. In order to implement these strategies correctly, companies need to develop different skills, gather particular resources and have an adequate organization of the company as in the following figure. Each of these strategy provide defense against the Porter’s five forces. Companies usually set one of these strategies as their primary target, but it is rare to find these strategies totally “pure” and free from any influence of the two others. CASIO uses differentiation followed by cost...
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...“PERKUPOLDIES LTD. – A POCKET WATCH COMPANY” presents [pic] “VASSILY” Group 1 |NAME |ROLL NO | |ALANKAR SINHA |25 NMP 03 | |SUDHIR SINGH |12 EM 13 | |VIKAS AGGARWAL |25 NMP 44 | |SMITHA H S |25 NMP 42 | |ALOK SHUKLA |25 NMP 04 | |LAAVANYA SOI |25 NMP 21 | [pic] Table of Contents 1. Executive Summary 4 2. Situation Analysis 6 2.1. Macro Environment 6 2.1.1. Regulatory 6 2.1.2. Political 6 2.1.3. Economic 7 2.1.4. Social & Cultural 7 2.1.5. Technological 8 2.1.6. Demographics 8 2.2. Micro Environment 9 2.2.1. Intermediaries & Distribution 9 2.2.2. Company 10 2.2.3. Suppliers 10 3. Product Category Review 10 3.1. General description...
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...APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20 Appendix 10: Cross Business Strategic Fits20 Appendix 11: Evaluating the Strategy of a Diversified Company21 Appendix 12: LVMH's Timeline of Mergers and Acquisitions24 9.0 REFERENCES25 1.0 Executive Summary The aim of this paper is to discuss the key strategic issues that LVMH face and establish some future recommendations that can be implemented in order for LVMH to remain successful in the luxury industry. In order to determine the key strategic issues a number of analysis tools were applied to the case study; they include Porter's 5 forces model, SWOT analysis and PESTEL. It was found that the key strategic issues that LVMH face centred on diversification and vertical integration. A number of strategies have been proposed to offer some recommendations to LVMH, they namely in restructuring their retail sector, considering the concept of moderate diversification and focusing on the human resources side of acquisitions and mergers. 2.0 Introduction This report is based on the analysis of a case study 27 titled: LVMH's Diversification Strategy into Luxury Goods. The scope of this report is limited to the data...
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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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...analysis were: * The luxury goods industry was very sensitive to the fluctuation of the economy and any economic drift could have a great influence on its sales. * If the economy was depressed its sales growth went down sharply (e.g. SARS attack 2003) and so did the consumer spending for the luxury goods. * Socio cultural challenge for LVMH was to cater to the needs of the different target customers. (Middle class customers to elite group customers). * Although the luxury market seemed to be dull between years 2001-2003 there was a turnaround and the world economy was recovering enormously and LVMH net sales was still better than the average industry performance. * Positive economic climate (periods of relative prosperity with low interest rates and increased consumer spending), tax cut rates along with the optimistic attitude of the firm all favored the growth of LVMH. * There were enormous growth opportunities in new regions such as China, India and Russia. Inspite of the economic downturn, LVMH’s growth was positive and maintained its leadership position in the luxury industry. As the affluent middle class primarily drives the rapid growth of the luxury goods industry, LVMH needs to monitor them more closely and cater to their needs. Industry analysis: LVMH belongs to the luxury fashion industry operating in five major sectors (See exhibit 2 for the major units of LVMH) targeting the affluent sectors in the world. The luxury industry appears very...
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