Swatch Strategic Analysis

Topics: Omega SA, Swatch Group, Switzerland Pages: 7 (1394 words) Published: September 29, 2010


Today, Swatch is a world known brand, and is recognized for its watches quality. One man should be rewarded for this: Nicolas G.Hayek. He was the one who created the brand, inside the Swatch Group, in 1983.

Now, Swatch is one of the leaders in the watch industry, and a huge worldwide MNC. Hayek knew which strategy he should adopt in order to launch the Swatch Brand.

He was a strategic thinker…

Strategic Thinking

How did Hayek manage to make Swatch one of the Leaders of the watches industry? He was creative, innovative, and he was not afraid to take risks in order to lead his strategy. For instance, he took the risk to create The Swatch, a Swiss watch, with a high quality level, at a reasonable price. That’s what made the success and the rebirth of Swatch Group. He acted like a modern entrepreneur, who takes decision for the greater good of his company. Eventually, he became the CEO of SMH (Société Suisse de micro électronique et d’horlogerie), and enabled the creation of new opportunities and perspectives, and the development of a new spirit company.


Environmental Analysis

Macro Environment (Watch Making Industry)
| |Opportunities |Threats | |Political-Legal |Fiscal policy favorable in Switzerland : |Accusation from abusing its dominant market | | |-Low tax rates, fiscal discounts |position few months ago | | |-Support of the Swiss Government regarding | | | |the matter of the watch making industry in | | | |the country. | | |Economic |-Huge demand from Asia, especially China, for|-Rise of new markets producers in Asia | | |Swiss Watches (Matter of prestige) |-Imitations are growing up (50 M Fake watches| | |-Luxury market still expanding in spite of |all over the world in 2009) | | |the crisis( China is the main target. |-World crisis, which influences on the | | | |purchase power | |Socio Cultural |-Swiss Made label |-Competition of the cell phones, which | | |-Watch considerate as a real cloth accessory |display the hour on the screen | | | |-Suffering of the brand reputation with the | | | |imitation. | |Technological |-Know how of the Swiss watch making |-Lack of qualified labor force in the watch | | |-High tech technologies |making industry | | |-E-trade and E-Business development | |

-Micro environment

We will focus on the competitors on one hand, and on the customers on the other hand, with a detailed segmentation.


1°) Luxury Watches market
|Companies |Turnover (only for the watches,|Most famous brands watches...
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