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    Swatch Watch A Case Study

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    Gaurav Yadnik
    The document summarizes the history and rise of Swatch watches. It describes how Swatch fell from dominating 80% of the global watch market in the 1940s to just 42% in the 1970s due to the rise of inexpensive quartz watches from Japanese manufacturers. Nicolas Hayek revitalized Swatch in the 1980s by adopting the new quartz technology, focusing on innovative designs, aggressive marketing, and offering watches across multiple price points, which helped Swatch regain its position as the largest watchmaker in the world.

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    Swatch Watch A Case Study

    Uploaded by

    Gaurav Yadnik
    404 views15 pages
    The document summarizes the history and rise of Swatch watches. It describes how Swatch fell from dominating 80% of the global watch market in the 1940s to just 42% in the 1970s due to the rise of inexpensive quartz watches from Japanese manufacturers. Nicolas Hayek revitalized Swatch in the 1980s by adopting the new quartz technology, focusing on innovative designs, aggressive marketing, and offering watches across multiple price points, which helped Swatch regain its position as the largest watchmaker in the world.

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    Swatch Watch a Case Study

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    The document summarizes the history and rise of Swatch watches. It describes how Swatch fell from dominating 80% of the global watch market in the 1940s to just 42% in the 1970s due to the rise of inexpensive quartz watches from Japanese manufacturers. Nicolas Hayek revitalized Swatch in the 1980s by adopting the new quartz technology, focusing on innovative designs, aggressive marketing, and offering watches across multiple price points, which helped Swatch regain its position as the largest watchmaker in the world.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    404 views15 pages

    Swatch Watch A Case Study

    Uploaded by

    Gaurav Yadnik
    The document summarizes the history and rise of Swatch watches. It describes how Swatch fell from dominating 80% of the global watch market in the 1940s to just 42% in the 1970s due to the rise of inexpensive quartz watches from Japanese manufacturers. Nicolas Hayek revitalized Swatch in the 1980s by adopting the new quartz technology, focusing on innovative designs, aggressive marketing, and offering watches across multiple price points, which helped Swatch regain its position as the largest watchmaker in the world.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    CASE STUDY

    ON
    swatch watch

    Starting from the birth of swatch. The ups and downs
    came to it. And about an changing era. And a
    mighty heart to tackle with this changes.



    A case study swatch watch
    -Sudhir Talekar (M13-49)
    Biggest watch manufacturer in the world.
    Formed in 1983
    Founded by Nicolas Hayek,led by
    G.Nicolas
    Hayek(son of Nicolas Hayek)
    Gross sales 6.14 billion CHF
    Swatch Group has around 25000
    employees.
    HISTORY
    Swiss dominated the watch industry because of their centuries
    long history of jewelry making expertise.
    MADE IN SWITZERLAND lable was a global seal of a quality,
    status and prestige.
    During 1945, Swiss accounted for 80% of the worlds total watch
    production and 99% of US imports.
    During 1951, the introduction of TIMEX launched low cost
    mechanical watches that used hard alloy metals instead of
    expensive jewels.
    TIMEX watches were available with the price ranging between
    $6.95 and $7.95. And the watches were disposable type.
    During 1970s Japanese manufacturers like SEIKO, CITIZENES
    expanded over the Asia and tried to cover Europe and North
    America also. Which declined the share of swatch from 80% in
    1946 to just 42% in 1970.

    INTRODUCTION OF NEW QUARTZ TECHNOLOGY
    Made use of quartz and integrated circuits
    Provided Accuracy, more sophisticated
    functionality, more features like day & time, Digital
    display, Analog watches.
    Cheaper in cost of manufacturing.
    A wide Price range, starting from $8 to $20, today
    even below $5.

    FREE FALL OF SWATCH
    Swatch was only concentrating on production of high end mechanical
    watches and was not interested in adopting quartz technology, because
    swatch was of the view that this technology was unreliable,
    unsophisticated and not up to Swiss standards.
    Japan watchmakers captured whole global market with quartz watches
    at rock bottom prices and Swiss watches found itself unable to
    compete.
    Year
    Growth
    Rate
    1983 33%
    1984 33%
    1985 100%
    1986 50%
    1987 4%
    1988 0%
    1989 0%
    HAYEKS STRATAGES
    Take over of SSIH and ASUAG
    Concentrated on adopting new technology and to create a new
    range of pricing.
    Focused on the Italian Customers who were crazy for fashion and
    looking for something innovative.
    Appointed artists, architects, designers. Proposed more than
    3000 designs. Introduced different designs for different segments
    of customers.
    First watch to introduce see-through watch and scented watches
    Introduced a new range of price in three price segments.
    Created a swatch collectors club for its fans.
    Adopted world class distribution strategy. Introduce an
    unconventional retail approach that created many non-traditional
    points of purchase.



    ANALYSIS


    In the Mid-seventies, the Swiss
    watch industry was in the midst of its
    worst crisis ever.
    Why ?

    Major problem with swatch was rise of Quartz
    technology. Japanese companies like CITIZEN got
    floded over whole of the market with this technology.
    Marketing strategy were not up to the mark with
    customers need and value for the money.
    No artistic designs.
    High range of price.
    This lead to a big free fall of swatch group.

    SUCCESS STORY
    Unique Adds campaigns.
    World class designs, explores 140 designs every
    year.
    Aggressive & penetrating strategy.
    Watches for everyone.
    Different R & D and Technology.
    Swiss club.
    Radical innovations in design, automation and
    assembly as well as marketing and
    communication.
    Runs 24 x 7
    Efficient designers were adopted.
    Considered consumers approach .




    CONCLUSIONS
    IN BUSINESS YOU HAVE TO KEEP ALL
    OPTIONS OPEN
    TECHNOLOGY ADOPTION FOR QUALITY
    AND PRICE IS MUST.
    BUSINESS STRATEGIES SHOULD BE
    REVIEWED EVERY QUARTER
    COMPETITIORS HAVE TO BE TAKEN
    CARE OF
    WIDER CUSTOMER BASE IS IMPORTANT
    THE WATCHES NEEDED TO BE
    ATTRACTIVE, CHEEKY AND GOOD FUN,
    DARING IN DESIGN AND
    AGGRESSIVELY PRICED, WITH HIGH
    QUALITY AND INNOVATIVE FLAIR. THE
    SWATCH WATCHES WERE HIGH-TECH
    AND CAME IN A VARIETY OF FASHION
    AND ART DESIGN.

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