The swatch group was formed in Switzerland in the year 1983 under the leadership of Nicolas G. Hayek. Originally the company was founded by a merger of two Swiss watch manufacturing division’s which are ASUAG and SSIH which was named SMH (Swiss Corporation for Microelectronics and Watchmaking Industries Ltd). The group was renamed as Swatch group in the year 1998. Nicolas G. Hayek (CEO), strongly constructed new opportunities and rooted a new culture. In the coming decade, SMG Group expected to get the most prestigious watchmaker in the world. (Diderich, J. 2010)
Strength * It has a distinct identity all over world * Swatch Company has around 28,000 employees across 50 nations with about more than 900 boutiques. * It has customer royalty | Weakness * Rise in competition from other brands * Sponsoring and advertising is not productive. * Market becoming fragmented. | Opportunist: * Emerging market with a huge population like India and china can be the primary target. * Innovation and trends * It had recorded sales in the year of 2011 (Anonymous 2011)| Threat: * High cost of production * Competition from other top brands * Plastic and metal price increasing, making raw material costly. |
When it comes to challenges, the few most common challenges in terms of a market is firstly and most importantly competitors. Three main competitors for swatch groups are: Seiko Holdings Corporation
Citizen Holdings Co., Ltd.
Compagnie Financière Richemont SA.
Apart from competition there are other challenges in an external environment like technological advancements, changing government policies, different target markets, change in tastes and preferences. Apart from these external problems as watch manufacturing unit there is something called as delivery, to deal with after sale. When it comes to delivering, the first significant challenge is transportation. Apart from creating availability and targeting new customers, tapping new markets is also a prime plan to develop. When it comes service swatch is watch manufacturing and selling unit. A service is a follow up. Swatch group is mainly in terms of good quality product which primarily aims at a high end consumer. More than the product or the brand name service is something which they pay for. It is a significant challenge to keep the customer happy and satisfied. Other changes in terms of the external environment are challenges and changes the company faces in the marketing and distribution of its products and services. Also, one of the major challenges to swatch group is the increasing pace in need which will involve around 800- 1000 qualified people to meet this demand, which are not easily accessible. (Simonian 2008) As the development goes on, the technology revolution is here for watches. Today, watches with iPhones, touch screen, telephone, radio and mp3 music player are coming in trend. Swatch has taken a step in this trend and has launched their swatch net. Invader brand, but competition from existing mobile brands like Apple, Sony Ericson, and Samsung will be enormous. (Kueppers and Latour 2000) Another challenge that Swatch Company is facing is about production. Swatch group Ltd is not able to meet the demand of people due to shortage in availability of the skilful workers. They wanted to add around 2000 of skilled employees, but they struggle to get them which subsequently did not meet the demand. (Minder 2011)
One of the biggest watch makers in the world is Swatch group. It has announced it net income to be increased by 26 per cent and operating profit’s rise by 22.9 per cent from 2011 to 2012. Also, they commit to have positive performance in year 2013. (Anonymous, 2013)
Swatch Group LTD has invested and expanded in diamond mining in Toronto, Canada. This is one of the big opportunities for swatch company to increase their income. There are opportunists for a range of diamond in...