Long history of high quality watches. The Swiss watch industry suffered from competition due to the arrival of Asians in the market. There is also a drastic increase in operating costs inthese went from 1, million in to 1. Bargaining power of suppliers: Pressure of substitute products: However, the difficult economic situation resulted in the reduction of the number of the industry: Extension of sales outside of the European market.
All of these numbers translate into one thing: Get Access Swatch Strategic Analysis Essay Sample The Swatch watch was basically launched to re-capture the entry level market share lost by Swiss Manufacturers during the explosive growth of Japanese watch companies, such as Seiko in the s and s, and also in order to re-popularize analogue watches in a time when digital watches had reached wide popularity.
Arrival of Asian manufacturers.
However, after the success of the delirium project, the entire organizational structure was reworked in order to improve creativity and to encourage employees to express their ideas. This innovation helped swatch to regain technological edge over its competitors.
Increase in sales of electronic watches. The number of assets owned by the company also increased in order to face increasing demand. More essays like this: Also, swatch products are sold through specialized shops and chic boutiques to convince the consumers that swatch product are high fashion accessories.
Rivalry among existing firms: The watch industry attracts many new companies especially Asians, since they have low production costs. Suppliers have medium bargaining power because the customers watch manufactures have high negotiation power; therefore they are important to suppliers.
The first steps of the new Swatch brand in were marked by bold new styling and design. The Swiss watch industry dealt with huge losses due to the use of old and outdated production processes whereas competitors incorporated latest technologies in their products.
Reduction of production costs due to using molded cases. This combination of marketing and manufacturing expertise restored Switzerland as a major player in the world wristwatch market. The Company is doing better over the years, and that is due to better manufacturing procedures that reduced production costs and improved product quality.
Introduction of the electronic watch by other manufacturers.
To achieve low production costs, production facilities are established in low cost countries such as China and India. Other manufacturers incorporated advanced technologies in their products whereas swiss watch manufacturers continued to use out-dated tech.
Also companies set attractive prices to their products while still keeping generous profit margins. Due to the intense competition, the Swiss watch industry faced its misfortune which resulted in large scale layoffs and bankruptcies, job losses led to regional unemployment rates unknown in Switzerland since Adverse dollar exchange rates caused Swiss watches to be more expensive in the United States.Read this essay on Swatch Analysis.
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Swatch is one of the most successful brands of the Swatch Group. Its first line of plastic quartz analog line was launched inand went.
Our strategic analysis gives us the opportunity to learn more about Swatch Group, to point out the factors that lead to its success and to give recommendations in order to improve what seems for us going wrong. Strategic Analysis and Strategic Management Essay Explain why strategic analysis is necessary in the process of developing an appropriate strategy.
Identify tools that are available to examine the external environment and discuss how and why they are used. Read this essay on Swatch Strategic Analysis. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more.
Only at ultimedescente.com". Free Essay: 1. Conduct an industry (five forces) and environmental (PESTEL) analysis of the watch industry When Swatch emerged init was a prime time.Download