Swatch Analysis

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12/03/2012 |

Strategic Analysis
The Swatch Revolution

Sommaire I. Macroenvironment analysis 4 1. Economic environment 4 2. Technological environment 4 II. Industry environment: Porter 5 strengths 5 1. Threat of new entrants 5 2. Bargaining power of buyers 5 3. Bargaining power of suppliers 5 4. Threat of substitute products 6 5. Rivalry among Existing firms 6 III. Mission, goals, objectives, social responsibility and ethics 7 1. Mission and Vision 7 2. Goals 7 3. Performance 8 IV. Business Unit Strategies and Functional Strategies 9 1. Vertical growth strategies 9 2. Horizontal growth strategies 9 3. Diversification strategies 10 4. Portfolio strategies 10 5. Parenting strategies 10 V. Strategy Implementation 11 1. Structure 11 2. Organization 11 VI. Strategic control 13 1. Critical issue: Swatch fails to create a distinctive image in the customer’s mind. 13 2. Financial analysis 13 VII. Recommendations for future action 15

The Swatch Revolution

The Swatch comes out in Switzerland to contrast the crisis of the national watch industry blew up in the 70s because of the arrival of hundreds of quartz watches at a low price, coming from Japan and from Hong Kong, and for the decision to adopt not the quartz technology the Swedishes themselves had invented. There were, moreover, strategic, structural and managerial problems too.
The success of Swatch took place despite the other branded goods’ equal desperation for growth and the value-conscious consumers’ resistance to price increases in an era of low inflation (Noella, 2002), and are opting for high-quality private label goods instead of brands (Devincentis and Kotcher, 1995). Thus, Swatch’s innovative evolution had essentially had broaden their consumer base.
For Swatch, the recuperation and improvement from their diminished market share due to their high-priced watches and the availability of low-priced brands can be

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