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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.
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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.
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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).
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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
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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
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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
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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
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Industry Analysis
• Luxury watches (most expensive)
• Sport watches
• Casual watches
• Average price of all watches is $125
• Most expensive outfit accessory on average
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Problems for the Industry
• Cell Phones
• Computers
• Clocks
• Cars
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New Industry Innovations
• Internet capability
• Environment friendly (solar powered)
• Satellite calibration
• Weather updates
• Thermal powered
• Spring drive
• * industry up 4% in past year
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• Revenue of $7.72 billion
• Creators of the • G-Shock (a popular
collector’s watch)
• Added solar technology to
G-Shocks
• Created Atomic Timekeeping watches
• 5 transmission stations (2 in Japan, 1 in America, 1 in Europe, 1 in China)
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• American based out of Connecticut
• America’s largest watch manufacturer
• Official timekeepers for New York City Marathon and New York Giants
• Recently introduced “Expedition watches”
• “takes a licking and keeps on ticking”
• Yearly revenue of approximately $700 million
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• 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
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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.
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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
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• 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.
Long—Term Recommendations
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