Swot Analysis

Topics: LVMH, Switzerland, Luxury good Pages: 5 (1348 words) Published: May 20, 2013
SWOT analysis overview
Swatch is a manufacturer and distributor of watches. . It also supplies movements and components to third-party watchmakers in Switzerland and around the world. The group has a global presence, which provides it a distinct competitive advantage in the market place. However, intense competition may erode the group's margins and reduce its market share. Strengths| Weaknesses|

* Global market presence * Strong brand portfolio * Extensive product offering| * Unfunded employee post-retirement benefits| Opportunities| Threats|
* Strategic acquisitions and partnerships * Emerging luxury products market in China| * Intense competition * Exchange rate risk| SWOT analysis details
Global market presence
Swatch has a global presence through its distribution network spread across Europe, Americas, Oceania, Far East, Middle East and Africa. The group has presence in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, The Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, the UK and Ireland. Swatch also has its operations in Brazil, Canada, Mexico, Panama, the US, Australia, China, Hong Kong, India, Japan, Macau, Malaysia, Singapore, South Korea, Taiwan, Thailand, UAE and South Africa. Furthermore, it also has a major position in the production and supply of watches, movements and components with 156 production centers. The group has maintained its leadership position during FY2011 in most of the segments through its product launches, as well as investments in renovation and new store openings, thus expanding and improving its worldwide network. Strong market presence provides the group a distinct competitive advantage in the market place and increases its sales. Strong brand portfolio

Swatch is the world's largest manufacturer and distributor of watches. It owns major watch brands such as Breguet, Glashutte-Original, Blancpain, Leon Hatot, Jaquet Droz, Omega, Longines, Rado, Union Glashutte, Tissot, CK, Balmain, Certina, Mido, Hamilton, Swatch, Flik Flak and Endura. Each brand enjoys strong recognition various markets. For instance, Omega was ranked 10th in the list of Best Swiss Brands in 2012 by an industry source specializing in brand valuation. Breguet was ranked 21st on the same list. Omega was also ranked seventh in the list of top 50 Swiss brands in 2012 by another industry source and Breguet was also ranked among the Top 100 French Brands in 2012. A strong brand portfolio helps the group to attract new customers across geographies and widen its customer base. Extensive product offering

Swatch, together with its subsidiaries, is engaged in the manufacture of watches, jewelry, movements, components and other products. The group offers watches in all price and market categories. The group also manufactures mechanical and quartz movements, and is active in the design, production and marketing of electronic components. EM, the group's business, produces standards as well as customer specific integrated circuits for applications in the field of consumer and industrial electronics, automotive, telecommunications, and computer peripherals industries. It also produces modules and liquid crystal displays. The group also provides data processing and timekeeping services at international sporting events. Swatch offers advanced timing systems which enhanced Swiss Timing's traditional sports timing and measurement services. Swatch is one of the world's leading information providers at sports events. The most recently introduced Ircos timing system is an innovative television commentator information system (CIS) that enables all the judges' marks and all the positions to be displayed in real time. An extensive product offering presents the group with access to wider end-markets and increases its sales. Weaknesses

Unfunded employee post-retirement benefits
The group has significant...
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