The Birth of Swatch

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“The Birth of Swatch”

1) Why was the Swatch so successful? In what way was this watch different from others in the industry?

Before Swatch started, Nicolas Hayek said “ Why cant we design a striking low cost, high quality watch and build it in Switzerland” just by reading this statement we can come to the conclusion that this was a new innovative idea, so what separates swatch from the rest of the other watch producers? * High quality

* Build in Switzerland
* Very low cost
Why was swatch so successful? Hayek had led the way for the success of the swatch by committing SMH to a business strategy that in many ways defied industry wisdom about how global watch companies should be run, this strategy was based on: * Strict commitment to vertical integration

* Decentralized marketing
* Portfolio management
Swatch watches were a not the typical Swiss watch however they managed to maintain a high ‘Swiss’ Quality image. They were the pioneers of a new-industry. The swatch team decided that the Swatch would have a unique message, one unlike that of any other watch brand in the market.

2) Do you agree with the original product strategy? The channel strategy? The promotional strategy? What about the pricing strategy?

1. The product strategy: I do agree, if swatch did not exist, Swiss manufacturers would have lost huge market share in the sale of watches because of the high prices. Swatch with its innovative thinking not only created a new face for Swiss watches but also kept the majority market share of watches in the nation of Switzerland.

2. The channel strategy: Swatch promoted and sold there watches in super-markets, food stores and small boutiques situating it in those places you don’t attract the normal person that has already come to the decision of buying a watch you attract the person that just encounters it in their daily life and will buy it although they never actually thought of buying a watch.

3. The...
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