...Swiss watch industry is a highly export-driven industry and this makes it very sensitive to international competition. There are two major sources of threat to Swiss watches: high-tech smartwatches made by apple and google and Chinese-produced low-cost watches(both fake production and other Asian watches such as Japanese brands). Swiss watches are positioned in luxury-watch industry so it can be claimed that this competition will not make a big change in the exports of Swiss brands. But even Swiss watchmaking executives do not agree with this claim. In a trade show in Geneva, an executive from HYT said: “We expect 2016 to be a very, very difficult year” after a decline of 11 consecutive months in 2015-2016*. The history of Swiss watches shows...
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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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...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 segments—the Swiss no longer accounted...
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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 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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...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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...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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...The Swatch watch was basically launched to re-capture the entry level market share lost by Swiss Manufacturers during the explosive growth of Japanese watch companies, such as Seiko in the 1960s and 1970s, and also in order to re-popularize analogue watches in a time when digital watches had reached wide popularity. The first steps of the new Swatch brand in 1983 were marked by bold new styling and design. The quartz watch was redesigned for manufacturing efficiency and fewer parts. This combination of marketing and manufacturing expertise restored Switzerland as a major player in the world wristwatch market. I-MACRO-ENVIRONMENT: Technological : The Swiss watch industry dealt with huge losses due to the use of old and outdated production processes whereas competitors incorporated latest technologies in their products. However, the CEO of ETA, Ernst Thomke, managed to turn things around by having the idea of bonding watch parts to the case which resulted in creating the world's thinnest watch. This innovation helped swatch to regain technological edge over its competitors. Threats: Other manufacturers incorporated advanced technologies in their products whereas swiss watch manufacturers continued to use out-dated tech. Introduction of the electronic watch by other manufacturers. Strengths: Long history of high quality watches. Delirium project provided innovations that leaded to swatch's development. Reduction of production costs due to using molded...
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...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 IN WATCH INDUSTRY Timex HMT Omega Casio Cartier Citizen FOREIGN BRANDS ...
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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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...Creating Value 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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...INDUSTRY OVERVIEW 1.1. WRIST WATCH INDUSTRY Wrist Watches form an integral part of the personality of individuals in the present era. Earlier seen as a luxury item, they are now witnessing a fundamental change in perception, and are now gaining respect as an essential utility item. For the watch industry, time seems in its favour what with the liberalization of the Indian market coupled with the rising purchasing power of the young and consumerist Indians. Indian watches market was for long dominated by public sector organisations like Hindustan Machine Tools Ltd. (HMT) and Allwyn (also famous for its refrigerators once upon a time!), and has now left the pioneers far behind or nowhere in market by private sector enterprises like Titan, Sonata, Ajanta and Timex along with foreign entities jostling for display space in the smallest of shops selling these products. Before the establishment of HMT as the dominant player in the Indian markets initially, the country was solely dependent on imports to meet the internal demand. However, establishment of HMT as the leading player in the wrist watch segment in the 1960’s, changed the scenario. In post liberalization India, the market stood to witness intensive competition between foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Fréderique Constant, Mont Blanc, Swatch, and many others. Many watch makers have made significant inroads in the industry and others are in the process of establishing themselves...
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...Is Apple’s release of the Apple Watch an example of good innovation timing? Yes, Apple’s release of the Apple watch is an example of good innovation timing. Apple Inc. is an American multinational corporation that produces consumer electronics and computer software products. It was co-founded by the iconic Steve Jobs and the other founders Steve Wozniak and Ronald Wayne. Though it faced tremendous amount of adversities in the initial, under the stewardship of Steve Jobs, the brand became a household brand. The company's reputable gadgets include Macintosh computers and laptops, the iPod and the iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser and many other applications (Rouse, 2009). Being a titan in the consumer electronics industry, its latest innovation would the Apple watch. Although other smartwatches has been out in the market. I feel that Apple watch was an example of good innovation timing. The first reason to support my claim would be that, Apple has made life easier for payments. Unlike other smartwatches that does not support the payment through smart gadgets. Apple has made it easier for Apple watch users to pay using the Apple Pay function. This is a mobile payment and digital wallet that allows the users to make payments via their smartwatches at the most secured way (Apple, 2015). This function is so much notable that great companies such as Barclays (Brian, 2016)and ExxonMobil (Campbell, 2016) are backing up this feature...
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...CASIO IN LUXARY WATCH INDUSTRY Market Analysis The mission of Casio's product 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”...
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...pieces of legislation later, if the statistics can be trusted, it would seem like the more things change in the meat packing industry the more they stay the same. During the 1970 creation of the Occupational Safety and Health Act (OSHA), the meat and meat products industry received the dubious distinction of being designated as one of the five classifications with the highest injury rates (Sparks Companies, 1999). Now almost forty years later the industry is still considered one of the most dangerous. The Bureau of Labor Statistics notes that the meat and meat products industry had the nation’s highest industrial injury for the five consecutive years from 1980 to 1985 (U.S. Department of Labor, 1988). Much the same as it was in 1943 (Horowitz, 2008). It was into this arena that Human Rights Watch decided to step. On its website Human Rights Watch describes itself as an independent organization dedicated to protecting human rights by exposing violations and trying to end abuses (Human Rights Watch, N.D.). Their 2005 study of three American meat packing plants revealed what they claim to be unsafe working conditions; intimidation of union organizers; denial of worker’s compensation claims for on the job injuries; and the exploitation of worker’ immigrations status to prevent complaints (Gonzalez, 2005). As a result of their investigation Human Rights Watch (2005) arrived at...
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