Those who have worn or at least seen a Swatch watch will know that this mark is indeed an indisputable reference in the field of watches across the world.
This world famous watch group was formed from the merger of two Swiss watchmakers, with 18 brands in its portfolio in total, each one more prestigious than the other. The group is also a producer of watch movements and components and provider of its own competitors.
Nicolas Hayek, 79, is head of this Swiss empire he founded in the 80s.Today his son Nick is called back to his father's business. The future challenges of the group can be understood better through the following question: How has the Swatch Group maintained itself to remain in the market as a leader of watches in the world? This question leads toa study of the external and internal diagnostic group to understand the business and its environment, then to consider the strategies that has developed.
The conclusion will lead to make recommendations to follow to ensure the continued success of the group and its influence worldwide.
The Swatch Group is a multinational based in Switzerland with many famous brands. Created from the fusion of large groups of clocks, it is the leading global watch behind the production of quartz watches sold in the world combined in all ranges from low-end to luxury.
The Swatch empire is flourishing and the market leader had announced very good results: more than 3.1 million euros in turnover in 2006, an increase of 27% since 2003. Their profits jumped 64% to reach almost 600 million euros in 2006.
The Swatch group has 156 factories and employs 21,000 employees in over 50 countries. It produces annually 17 million watches. Even if the production volume is only 1.5% of world production that is 1.2 billion units, mainly from China and by value, its market share is estimated at more than 25%.
It is therefore through this wide range of brands, each product from the group, has its own characteristics and a specific position within the industry to reach as many consumers as possible. Every individual of any age and any class, can then wear a Swatch watch , within the extent of its group's range.
With the buyout ASUAG, Swatch is now in a dominant position over its competitors. Indeed, with this acquisition, the group now has plants that provide all components of the watchmaking industry. This advantage was reinforced after the acquisition in 2000 of Universo which holds half the market for needles. With the exception of Rolex, competitors buy their parts from the group so that, through this activity it increases its market power.
The Swatch Group is the largest watch making group, but also the third behind luxury group LVMH and Richemont, Europe. The players on the world market of watches are numerous, and the Swatch Group is also one of the many competitors in terms of capacity, size, sales to other watch brands. But the main global competitors in the market for high end luxury wacthes are Rolex, Richemont, LVMH and PPR.
Tags: study of Swatch watch, marketing, strategic analysis, competitors
[...] The application exploded, and the brand is stretched to the limits of its capacity. The stores in the Swatch Group To be faster and more efficient in its distribution, the Swatch Group is actively working to open its own stores. In June 2006, as part of this policy, the group inaugurated its largest boutique in the Place Vendome in Paris, which is devoted entirely to Breguet. This shop of 400 square meters is the biggest store in the world devoted to watches. [...]
[...] Of course sometimes I'm forced to use the power but it is always a last resort." For him, the purpose of the creation of a company is to "allow everyone to be a little happier, to develop his personality without encroaching on the personality of his neighbor." For him, technology and marketing are two inseparable instruments of economic success, which he applied to his company. Also according to N. Hayek, to develop a business strategy, there are three important priorities which must be met: "1. the product the product the product. Never forget it " But under this appearance of "Mr. [...]
[...] The Swatch Group has two official sites. One is totally dedicated to trade (www.swatch.com), and the other site is more institutional and shows the organization of the group (www.swatchgroup.com). Similarly, all sporting and cultural events and inaugurations which take place in the shops appear in the press regularly. These various communication channels of the Swatch Group show the public the institutional values of the brand. External growth Regarding external development strategies, the Swatch Group has focused on inter strategies which include cooperative agreements and various acquisition projects. [...]
[...] Acquisitions Today, the Swatch group has become the leader in the watch market globally. Thanks to a strong acquisition strategy, it has a portfolio of brands known all over the world, including Blancpain, Hamilton, Omega, Longines, Tissot, Certina and Flik Flak, among others. Glashütter Uhrenbetrieb In October 2000, the Swiss group expanded into the high-end sector by acquiring the company Glashütter, a German manufacturer of luxury watches. Swatch has actually bought all the shares of the brand, for an amount estimated at about 45 million Euros. [...]
[...] Everything is possible to achieve in the design office of the Swatch Group, as the diversity of its offer is vast. In the design of watches some of the models are focused on the high technology developed by the R & D. The strength of the civil design or construction of the unit is its capacity for innovation, creativity, understanding of the market and therefore the fashion, which allows it to propose models which are always ahead of the evolution of fashion. [...]
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