Case Study on Swiss Watch Industry

By:- Shivakeerthan

Content

SWOT Analysis for the Swiss Watch IndustryWhat went wrong with Swatch and why?Factors contributing for decline of swatch and

why?Management Strategy to ensure that your market share did not erode.

Strength Before

• Huge market shares.• Capital.• Innovation.• Brand name

After (Entry of Dr.ET)• Low price prestige watches.• Technology. • Expertise people.• Automation with robots. • Costive effective.

Weakness

• Adoptability to rapid changing market.• Changing pace(Mechanical to quartz). • Manual production lines.• Less innovation.• No market study and survey.• High cost.• Technology Expose.

ThreatsAsian Penetration.

• Effective cost.• Automated Production line.• Small firms started assembly and selling in tiny

margin.• Japan and Hong Kong costive effective.• Low cost labor in Hong Kong. • Flexible to adopt the rapid changes.

Opportunity

• High growth of less expensive watches.• First quartz by Swiss.

What went wrong with Swatch and why?• Management Decision.• Market study and Survey.• Adoptability for new technology.• Changing pace.• Improvement of new technology watches

(quartz).• Manual Production lines.• High labour cost.

Factors contributing for decline of swatch and why?

Asian Penetration.• Effective cost.• Automated Production line.• Small firms started assembly and selling in tiny

margin.• Japan and Hong Kong costive effective.• Low cost labor in Hong Kong. • Flexible to adopt the rapid changes

Management Strategy to ensure that your market share did not erode.

• market study and survey.• Reduction of production cost(Automation).• Quartz technology development.• New Innovative product to market.• Aggressive market with advertisement.• Implementation of operational

excellence(Lean mfg. six sigma).• Low cost watches.

Any Questions

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