Brief History of the Company: Tag Heuer was founded in 1860 by Edouard Heuer in Switzerland. Since the beginning Tag Heuer has been recognized as one of the leading brands in the luxury watch industry. In 1999, Tag Heuer was acquired by LVMH Moett Hennessy. Tag Heuer competition include many brands however its direct competition is Omega, Rolex, and Longines.
Why should Tag Heuer should expand: In order for a business to have its door open it needs to be profitable. The world has become globalized and with that new markets have emerged. As a result companies are expanding globally to attract new consumers. It would be irresponsible for Tag Heuer to decide not to take advantage of these opportunities due to the economic implications this would bring. Tag Heuer would use the globalization of markets which is the merging historically distinct …show more content…
At the moment Tag Heuer does not the brand recognition that Omega, Rolex, or Richemont have. A way to increase their brand recognition would be to the signed of famous athletes to endorse their products. Cristiano Ronaldo (Real Madrid-Portugal) is perhaps the most famous athlete in the world, he just signed a deal with Tag Heuer to promote their products. Tag Heuer can as a result create marketing campaigns with the famous footballer to increase their image. Due to crackdowns on corruption government officials the growth in market sales has not been as rapid as the years before. However, the growth it is still steady but competition between watchmakers has intensified. Another challenge in the Chinese market is the unavailability of internet sales due to the development in some cities in China as well as the lack of will for consumers to purchase high-end timepieces due to the lack to trust of online websites. This decreases the amount of consumers Tag Heuer can reach in China.
Type of Market
Why should Tag Heuer should expand: In order for a business to have its door open it needs to be profitable. The world has become globalized and with that new markets have emerged. As a result companies are expanding globally to attract new consumers. It would be irresponsible for Tag Heuer to decide not to take advantage of these opportunities due to the economic implications this would bring. Tag Heuer would use the globalization of markets which is the merging historically distinct …show more content…
At the moment Tag Heuer does not the brand recognition that Omega, Rolex, or Richemont have. A way to increase their brand recognition would be to the signed of famous athletes to endorse their products. Cristiano Ronaldo (Real Madrid-Portugal) is perhaps the most famous athlete in the world, he just signed a deal with Tag Heuer to promote their products. Tag Heuer can as a result create marketing campaigns with the famous footballer to increase their image. Due to crackdowns on corruption government officials the growth in market sales has not been as rapid as the years before. However, the growth it is still steady but competition between watchmakers has intensified. Another challenge in the Chinese market is the unavailability of internet sales due to the development in some cities in China as well as the lack of will for consumers to purchase high-end timepieces due to the lack to trust of online websites. This decreases the amount of consumers Tag Heuer can reach in China.
Type of Market