Abraham-Louis Breguet created the
first known wristwatch in history in
1810, for Caroline Murat, sister of the
Emperor Napoleon l and Queen of
Naples.
History
• In the 1970s, the watch making of Swiss city fell
in an unprecedented crisis.
• The people of Switzerland: if you are not
sleeping, you are making the watch.
• The Swatch group was created by Nicolas
Hayek with the merging of the ASUAG and SSIH
in 1983.
• Headquarter is Biel, Switzerland
• In 1998, it was renamed the Swatch group.
History (cont.)
• Product: Watches, jewelery, electronic systems
for timekeeping.
• Brand: Swatch, Omega, Rado, Longines Radar,
Tissot, Calvin Klein, Blancpain , Mido, etc.
• “S”watch: “Second-watch”or
“Swiss-watch”
• In 1999, Swatch purchased the famous brand
“Breguet” to expand the top luxury in the table.
• Employees: 23,560 (2009).
Current and Future Profile
• Swatch is a very popular watch company that began
twenty seven years ago.
• In 2009 Swatch reached a gross sale of nearly six
billion.
• There are more than 400 new designs through
swatch group every year
• New conveniences such as cell phones may
potentially hurt Swatch
• Proper Fashion updates is necessary
SWOT Analysis
•
•
•
•
Strengths
profusion colors & lively design styles
plastic sheet, 51 parts, save a lot of cost
has a lot of permanent customs
•
•
•
•
•
Weaknesses
fashion style just for most young people
no variety market around the world
mainly produces the wrist watches
Not comparable price advantage
SWOT Analysis(Cont.)
• Opportunities
• show its creation and love of life
• enormous potential market
•
•
•
•
Threats
so many competitors
customs have special taste
The requirement of the world
Global Market Expansion
• Swatch is the second largest watch company with
having 18 brand watches
• Low cost and good fashion designs has made
Swatch very popular
• New automated assembly line produces 35000
watches a day including millions of parts
• Labor reduced 30% to 10% to ensure quality
• 1983 to 1992 Swatch hit sales breaking 200 million
watches
Industry Analysis
• Luxury watches (most
expensive)
• Average price of all
watches is $125
• Sport watches
• Most expensive outfit
accessory on average
• Casual watches
Problems for the Industry
• Cell Phones
• Clocks
• Computers
• Cars
New Industry Innovations
• Internet capability
• Weather updates
• Environment friendly
(solar powered)
• Thermal powered
• Spring drive
• Satellite calibration
• * industry up 4% in past
year
• Revenue of $7.72
billion
• Created Atomic
Timekeeping watches
• Creators of the
• G-Shock (a popular
collector’s watch)
• 5 transmission
stations (2 in Japan, 1
in America, 1 in
Europe, 1 in China)
• Added solar
technology to
G-Shocks
• American based out
of Connecticut
• Recently introduced
“Expedition watches”
• America’s largest
watch manufacturer
• “takes a licking and
keeps on ticking”
• Official timekeepers
for New York City
Marathon and New
York Giants
• Yearly revenue of
approximately $700
million
• Japanese company
based out of Tokyo,
Japan
• Founded in 1881 and
incorporated in 1917
• Revenue of $2.64
billion
• Invented the kinetic and
thermal powered watch
• Official timekeeper of 5
Olympics and 4 World
Cup soccer
tournaments
• Invented the
revolutionary quartz
watch
Short—Term Recommendation
• Focus marketing towards lower priced watches
• Reason: the economy is in recession
• Purchase other companies to increase market
share
• Advertize products in TV commercials and
magazines
• Reason: brand image is not impressive this time.
Long—Term Recommendation
• Expand Globally
• Reason: as a global corporation, expanding is a
basic and necessary strategy.
• Market to an older generation
• Reason: Swatch’s products are almost
concentrated solely on young generations
• Marketing to older generations increases
potential consumers for business
Long—Term Recommendations
• Change the design strategy to be new and
creative
• Reason: as a creative company, it would transfer
its creativity in designing wrist watches to
designing ring or necklace watches.
• Focus on some environmental friendly
watches using some green materials.