...SWATCH : EL ARTE DE REINVENTAR EL TIEMPO Tomado del libro INNOVACION: El arte de inventar el futuro ¿Qué es un reloj? ¿Un artículo para medir el tiempo? ¿Una joya? ¿Un accesorio de moda? El replanteamiento de estas preguntas básicas acerca de lo que un reloj significa para el cliente logró que la industria relojera suiza resurgiera de sus cenizas en uno de los regresos empresariales más espectaculares del siglo XX. Un poco de historia El diseño del negocio relojero suizo no había cambiado prácticamente en nada hasta los años setenta. No había razón para hacerlo. "¿Para qué? —se preguntaban—. Si siempre hemos realizado nuestros negocios de esa manera y nos va muy bien, ¿por qué cambiar? El cliente, nuestro cliente, el de siempre, es un hombre conservador y pudiente que paga un precio elevado por un producto que contenga la leyenda “Hecho en Suiza”. Era cierto. Hasta la década de los setenta, nadie cuestionaba que un reloj era un sinónimo de joya. Los Suizos se habían encargado de satisfacerles a sus clientes sus más sofisticados deseos. De la precisión al estilo, del lujo al refinamiento, de 100 hasta los 500 000 dólares o más. Los suizos dominaban el negocio de la relojería. Con cerca de 90.000 empleados, tenían más del 60% del mercado y el 90% de las utilidades. En 1970 la industria tenía un valor cercano a los 10 mil millones de dólares. Nadie cuestionaba su éxito. Todo iba bien, no había una razón poderosa para cambiar. El paradigma en el que basaban sus creencias era real...
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...was the Swatch so successful? In what ways was the Swatch different than any other watch the industry had ever seen? Switzerland, which had absolute advantage over watches, continuously lost their occupation over the market by Japan and Hong Kong which emerged with low-cost item strategy. To cope with this crisis, SMH which had considerable portion in watch of market in Switzerland made new brand that have novel strategy, and that is Swatch, leading brand of watch market these days. We will now look about SMH through SWOT, and find out why SMH had to make the brand Swatch and through which strategy we will find out the reason how Swatch became successful in the market. [Picture 1] By looking at SMH through SWOT analysis (Picture 1), even though the SMH of those days had brand of luxuries, and had advantage of having know-how to make high quality watches, it had weakness of having problems of high prices and had troubles of business at managing, strategies, and structure. But the point that they could create portfolio by merging two brands, and the Nicholas Hiek became the new CEO was the chance for SMH. Lastly, the fact that Hong Kong and Japan came up with low price strategies was the threatening thing for SMH. The counter-strategy SMH came up with for the low price strategy of competitiors was to keep their high qualities, keeping their advantagies but reducing prices, and using their chance of making portfolio by merging two companies and create Swatch. Then...
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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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...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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...Tarea #5 CASO SWATCH 1. Responda las siguientes preguntas: 2.1 Quienes eran los clientes de los relojes suizos antes y después de Hayek? Antes | Después | Los clientes a los que se encontraba enfocado el mercado de relojería suizo, eran personas que valoraban al reloj como una joya sofisticada. | Luego de Hayek, estando en una inminente crisis el mercado de relojes suizos, se decide no cambiar, pero si crear nuevos enfoques al mercado, orientados a gente fresca que valore al reloj como un accesorio de moda. | 2.2 Cuáles son las características de esos clientes? Antes | Después | * Nivel socioeconómico alto * Podían pagar un precio elevado * Reloj valorado como una joya sofisticada y tradicional | * Gente fresca y relajada * Amantes a la moda * De todos los estratos sociales | 2. Responda las siguientes preguntas: 3.3 Quienes son los competidores de los relojeros suizos? En un principio empresas como casio, Timex, Seiko y Citizen. Fueron quienes abarcaron mayor parte del mercado copiando el mecanismo digital subestimado por los suizos. Luego de la ampliación de concepto y tras la creación de Swatch surgieron nuevos grupos como: Mido, Calvin Klein, Tissot, Certina, Pierre Balmain y Hamilton. 3.4 Cuáles son los factores de mercado que afectan a los relojeros suizos? Uno de los factores principales que afecto a los relojes suizos fue el tradicionalismo, traducido como adversos al cambio. Este elemento fue clave...
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...Market Analysis : SWATCH GROUP Basic Analysis of the Watch Segment Gyanashree Maharana PGDM – BM Section - B Roll No – 82 Date of Submission : 7/14/2012 SWATCH GROUP TABLE OF CONTENTS SWATCH GROUP: AN INTRODUCTION KEY PRODUCTS AND SERVICES BRANDS: WATCH SEGMENT SWATCH: WORLD MARKET SWATCH GROUP IN FIGURES PRODUCTION STRATEGY SEGMENTATION TARGETING POSITIONING PROMOTION SWOT ANALYSIS 3 3 3 4 4 5 6 10 10 10 10 Page | 2 SWATCH GROUP SWATCH GROUP: AN INTRODUCTION The Swatch Group (or just ‘SWATCH’) is a manufacturer and distributor of watches, movements, components and other products. The group also manufactures mechanical and quartz movements, and is active in the design, production and marketing of electronic components. Swatch has subsidiaries and distributors worldwide. It is headquartered in Biel, Switzerland and employs about 28,000 people. KEY PRODUCTS AND SERVICES The key products and services that constitute the group are as follows – 1. 2. 3. 4. WATCHES RETAILING PRODUCTION ELECTRONIC SYSTEMS Our basic concern in this report will be on the Watch Segment. BRANDS: WATCH SEGMENT The following are the various brands that comprise the Watch Segment of the Swatch Group1: Prestige and Luxury Range Breguet Blancpain Glashutte Original Jacquet Droz Tiffany and Co. Leon Hatot Omega High-Price Range Longines Rado Union Glashutte Middle-Price Range Tissot Balmain Certina Hamilton ck Watch and Jewellery Basic Range Swatch Flik Flak 1 Info as in the Annual Report...
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... 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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...A Swatch is a fashion accessory that also happens to tell time via a Swiss-made time piece. By creating a semi-automatic process of production significantly cutting costs, Swatches offer the prestige of a Swiss watch without the higher end price point. The concept is revolutionary as it revives Swiss-made watches in the market space as well as targets young consumers who would not normally afford a traditional Swiss watch. Based on the data from Exhibits 3 and 4, the response in both the US and Europe is consistent. Due to that, we would recommend keeping our image the same in the US and Europe as a way to reach our target audience and provide a uniform brand recognition. However, trying to create a fashion apparel line seems to give a feel of stretching ourselves too thin. Consumers may not associate the grandness of a Swiss watch along with clothing and other accessories. It is best to stay with our original focus as a fashion accessory and continue to create watch models that will intrigue consumers. By focusing on what we have come to be known for, we can continue to grow and develop our brand, continue to learn about what our consumers like and how better to provide the kinds of watches they will love and buy. By poising ourselves in the market as affordable, fashionable and able to keep up with changing trends with bi-annual lines, we are definitely ahead of other companies. A Swiss watch says a lot and to be able to purchase it for about $30 is impressive. As long...
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...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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...Оглавление Введение 3 1. Анализ стратегии развития компании Swatch 5 1.1. Причины и процесс создания компании 5 1.2. Развитие компании Swatch 11 2. Анализ маркетинговых решений компании и результатов деятельности 16 2.1. Анализ рынков сбыта и маркетинговых стратегий компании 16 2.2. Анализ финансовых результатов деятельности Swatch 19 Заключение 22 Список литературы 24 Введение Конец XX века выдался для признанных производителей часов – швейцарцев - не самым простым. Их начали теснить компании из Японии, вроде Citizen, Casio, Seiko, которые выпускали дешевые и в это же время более технологически развитые часовые механизмы. Электронные часы. Многие слышали фразу: «Swatch – часы настоящего швейцарского качества». Ее произносят люди, показывая, таким образом, свое отношение к миру, но не для того, чтобы похвастаться. Они не выходят из моды на протяжении длительного периода времени, ведь компания не менее двух раз в году радует нас своими новинками, над созданием которых работают известные дизайнеры. Они удобны и практичны, но при этом не утрачивают своей элегантности с тонким намеком на роскошь. За три столетия так никому и не удалось отвоевать у швейцарских часов статус «настоящих», хотя желающих было немало. К их числу относятся и японцы, которые решили, что их ожидает успех в часовой промышленности, если они начнут производить часы доступные каждому. Тем более что у них был весомый аргумент – кварцевые часы. Хотя как раз швейцарские...
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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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...CLIENT PROFILE The Swatch Group is an international group active in the manufacture and sale of finished watches, jewelry, watch movements and components. Swatch supplies nearly all components required by its nineteen watch brands, and Swatch companies supply movements and components to third-party watchmakers in Switzerland and around the world. Swatch Group is also a key player in the manufacture and sale of electronic systems used in watchmaking and other industries. Swatch employs more than 24 000 people in over 50 countries. THE CHALLENGE Swatch engaged the services of Real Facilities to evaluate its Greater Toronto Area real estate holdings, distribution network and repair facility in an attempt to manage its growing real estate costs. With two years remaining prior to expiry, the key challenge was to secure a long-term position in the market while simultaneously providing an exit strategy to accommodate changing business needs. REAL FACILITIES' RESPONSE Real Facilities took a very strategic approach to this requirement. A thorough analysis of Swatch's existing lease was completed together with indepth explorations of its operations and ongoing business strategy. Multiple scenarios were developed, including a potential relocation of operations to a new facility. Only at the appropriate time did Real Facilities engage in discussions with Swatch's existing landlord where the opportunity was presented to continue a long-term real estate relationship with...
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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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...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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...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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