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The Swiss Watch Case Study: Fmdms - Group 1

The document discusses the history and strategies of Swatch Group in responding to threats from Japanese quartz watches and now smartwatches from Apple. Key points include: Swatch was formed through the merger of two Swiss watchmakers and produces watches across various price ranges. In response to Japanese quartz watches, Swatch's CEO Hayek launched an innovative new product called Swatch which positioned watches as fashion items. Swatch also focused on effective marketing, distribution, and capturing customer insights to stay relevant as tastes evolved. Now facing competition from Apple Watches, Swatch will need to leverage its craftsmanship and expertise while adapting to new technologies.

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Gaurav Modi
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60 views8 pages

The Swiss Watch Case Study: Fmdms - Group 1

The document discusses the history and strategies of Swatch Group in responding to threats from Japanese quartz watches and now smartwatches from Apple. Key points include: Swatch was formed through the merger of two Swiss watchmakers and produces watches across various price ranges. In response to Japanese quartz watches, Swatch's CEO Hayek launched an innovative new product called Swatch which positioned watches as fashion items. Swatch also focused on effective marketing, distribution, and capturing customer insights to stay relevant as tastes evolved. Now facing competition from Apple Watches, Swatch will need to leverage its craftsmanship and expertise while adapting to new technologies.

Uploaded by

Gaurav Modi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The Swiss Watch Case Study

FMDMS | GROUP 1

Divyanshu Mirani P181A15


Gaurav Modi P181A17
Sagar Sinha P181A43
Urvi Khandelwal P181B53
Vaishali Jain P181A31
About Swatch Watch
• The SMH, founded by Nicolas G. Hayek in 1983 through the merger Swiss watchmakers
ASUAG and SSIH, was renamed The Swatch Group
• SSIH was a company that had Swiss French origin , which had Omega as crown jewel.
ASUAG was Swiss German origin which had RADO and Longines as their brands
• Swatch has classified its products in the following broad categories: Prestige and Luxury
range(Breguet, Harry Winston), high range(longines, Rado) Middle range(Tissot, Mido)
and basic range(Swatch, Flik Flak)
• 97% of premier watches sold in the range of $400 to millions were swiss made watches
• With 156 production centers, it is the world’s largest watch producer. It also supplies
parts and components to the entire watchmaking industry
Japan Threat
• The japan focused on low to moderate income buyer whereas Swiss focused on upper
income groups
• Japan leveraged on the Quartz technology which the swiss invented to manufacture
low priced watches
• Japan is short of high end watches whereas swiss manufactured full range of watches
• Japanese watches are known for their efficient designs and high functionality at a low
cost
• Seiko, Casio and Citizen moved swiftly and altered several levels in their business
designs, simultaneously focusing on manufacturing; ( extraordinarily low cost);
distribution (creating ubiquity ) and marketing(creating universal awareness)
Incorporation of Swatch and pivot in its business
design(1/2)
• With the entry of Hayek, the entire watch industry revolutionized
• He formulated a positioning strategy for Swatch with respect to price and also unique
marketing strategies like the Swatch tower
• Introduced an extraordinary series of innovative products which includes Sistem51
which is the first ever to be assembled entirely by machines-mechanical revolution
• He believed that positioning watches as fashion and style is the way forward
• Swatch was not just offering high quality products but also as a zealous and fashion
accessory with an emotional significance
Incorporation of Swatch and pivot in its business
design(2/2)
• It targeted conservative, well to do customers who paid premium prices for a product
for whom the most important distinguishing feature was the small print that read
Made in Switzerland
• Brainstorming session with watchmakers helped them to achieve impossible objectives
and products
• Effort was to maximize outreach with reasonable cost so they launch the product on
the basis of image and message. They also started selling membership of Swatch
namely, The Club
• For Swatch, communication is a key aspect. They want their customers to identify
themselves and also feel the emotion
• As an official timekeeper 1996 Atlanta Olympic, Hayek made Swatch unique and
ubiquitous
Apple threatens the Swiss
• With the tech giant entering the watch market in 2015, the Swiss watch industry immediately
felt the tremors. The Apple Watch sold more units in one quarter of 2017 than the whole of the
Swiss watch industry combined
• Apple banks on its high-tech gadgetry and brand image and so the Swiss watchmakers should
not make the same mistake by taking the threat lightly as they did with the Japanese Quartz
• Swiss watchmakers feel that this is a passing trend and these devices will turn obsolete in the
coming few years, but with the rapid pace of innovation, this could have severe long lasting
impacts on the watch industry as a whole
• Swatch has already geared up by introducing digital pieces, but need to find a way to infuse
their globally recognised craftsmanship, and create timeless pieces with the latest tech
advancements
• While Apple banks on its technology, production, assets and distributor relationship and elite
image, these are all parameters that the Swiss are already experts in
Customer care and Insight?
• Swatch became a customer centric brand, capturing customer insights and then consistently
refreshing the fashion watch concept as per the customer’s taste and preferences

• Hayek’s philosophy involved caring for the customers and their emotions to capture
competitive advantage in highly volatile market

• Swatch also places great importance on communication with its customers

• Swatch has a knack for innovation coupled with consumer behavior. The example are
products like Irony Xlite, Sistem 51

• Swatch strategy was to give a message to its customers about who they are ,what they do
and why they do

• Swatch watch focused a lot on consumer behavior and customer issues rather than factors
like adopting the low cost production strategy
Thank You

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