Swatch the Birth of Essay
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Course: International Marketing
Lecturer: Dr. J.T. Bouma
Case: Swatch Group Ltd.
Date: March 16th, 2010
Students: Dennis Hesling, S1892444 Rikke Nielsen, S1939882 Jan Oestmann, S1956140 Arjen Hofman, S1873083
Table of contents
1. Introduction p. 1 1.1 Abstract p. 1 1.2 Introduction to the company p. 1
2. Analysis of the company and its market p. 2 2.1 Market p. 2 2.2 Performance analysis p. 2 2.3 Product adaptation p. 4
3. Environmental analysis p. 4 3.1 External environmental analysis p. 4 3.2 PEST-analysis p. 4 3.3 Opportunities and threats p. 5 3.4 Internal …show more content…
1.2. Introduction to the company
In the 1970s, Swiss watchmakers had a grim time , because the Japanese watchmakers had captured the European market with cheap watches of a high quality. The difference in accuracy and size between bottom line and top line watches had decreased to a level where a customer did not mind the difference. For that reason, expensive Swiss watches had no extra value anymore. As a response, in 1983, two struggling Swiss companies, SSIH and USUAG, merged and developed a new strategy, in which the focus was placed on the design of the watch. From 1983, the company commenced to manufacture watches out of plastic and composed of only 51 components, instead of the usual 91 parts or more. The CEO of the company, Mr. Nicolas Hayek, later changed the name of the company into Swatch Group Ltd.
The strength of the company, beside its inexpensiveness, is the wide variety of the products, together with the availability all over the world. Nowadays, the Swatch Group owns nineteen different watch-brands, together addressing all segments of the watch market. Five specific product sectors can be identified , which are explained below.
The primary range, addressed to the