Topics: Watch, Watches, Seiko Pages: 6 (2239 words) Published: September 17, 2010
Swatch is a unique success story. Why has the company been so successful? Was it important that the Swiss watch industry recapture the lower end of the market? Why? Why not? The Swatch watch was originally intended to re-capture the entry level market share lost by Swiss manufacturers during the aggressive growth of Japanese watch companies such as Seiko in the 1960s and 1970s, and to re-popularize analog watches at the time when digital watches had achieved wide popularity. The launch of the new Swatch brand in 1983 was marked by bold new styling and design. The quartz watch was redesigned for manufacturing efficiency and fewer parts. This combination of marketing and manufacturing expertise restored Switzerland as a major player in the world wristwatch market ( The two primary reasons for the success of Swatch is the perfect marketing strategy of the company and the quality and the design of each and every watch they are launching. The company has different varieties of watches for different age of their target customer, and because of the quality of the product, Swatch watch is no longer just a simple everyday watch but one of the hot collectible items in the world today. The company also makes sure that they have a series of new watches with different styles for every season, every special occasion and every event in the world. The design of the watch is also remarkable, because of the talented designers the company hires. A customer can choose from a variety of designs that fits his/ her moods and even culture. That is the reason why the Swatch watch is not only popular in the United State but in the whole world. The watch designers are making sure that every design of every series will meet the expectation of the customers. Fine watches were more than great accessories: They are investments that can become heirlooms. As one watch manufacturer¶s advertising slogan states, you never actually own it; ³you merely look after it for the next generation.´ That¶s why after-sale servicing of the timepieces is critical to its longevity ( 2003). That is the reason why those first edition and series of Swatch watches are now worthy and rare. Before, Swatches are available in every store and available in affordable price, but now, it is the opposite. This is due to more than one factor including the artistic design of the Swatch watches like new innovations, marketing strategies and strategic distributions system set up by Swatch Inc. Swatch capitalized on the idea of product line extensions and variations like no other company has. Swatch, Inc. knew that in order to keep its interest up beyond the 80s craze it had to make some changes ( It was important that the Swiss watch industry recaptured the lower end of the market. By doing this, the sales and the industry of the Swiss watch will not die and it will still be visible and available in different stores, and ordinary people with the average income can still experience and use the quality and fashion of the Swiss watch, but if we are going to talk about Swatch recapturing the lower end of the market that will be a far cry from now.

2. Do you see any parallels between the decline of the Swiss watch industry and other Western industries? Asia is becoming active in manufacturing and exporting of their products. China who is now involved in the global manufacturing market and she is beginning to establish and create the image as the World¶s manufacturer. Technology is also part of the expertise of Asia; Japan is now one of the most advanced countries in terms of machines and different infrastructures. Most of the products of China are now available in different parts of the globe in very low prices, almost half of the price of products from other countries. However the quality is another topic. Example of this is the decline of the shoe industry in America in 1992. This is because of the North American Free Trade Area. Mexico, now, can offer cheaper shoe ware. Because of this,...
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