CASE STUDY ON

THE BIRTH OF THE

Establish in 1st March ,1983 Founded by Nicolas Hayek (CEO of SMH) Dominant company in the market because of long history of jewelry making expertise. Swatch targeted his sales in 1st year of 50 thousand units but it sold 2 lacks units in 1st year. And same way its sales rises to 1 lack unit per month.

The name "Swatch" is a contraction of "Second

Watch" - coined by Nichole Lopez

Because : the new watch was introduced with a new concept of watches as casual, fun, and relatively disposable accessories.

HISTORY OF SWISS WATCHES

Prior To the 1950s Watch-making required master expertise of a micromechanical engineer. It consist of more than 100 Separate Components that had been assembled with great care and precision. These watches are repairable and this is one of the sourse of revenue for Swiss companies. Watch making was a sourse of national pride, and the Made in Switzerland Label was a global seal of quality, status and prestige. By 1945, there were close to 2500 companies , 90% of which employed fewer than 50 people.

GLOBAL COMPETITION
In 1951 , a company called U.S. Times Introduce Disposable Watches bearing the Timex Brand Name. These watches simply designed and used cheap exterior materials. Price range between About 7$ to 8$. Scenario in end of the 1950s, one out of every three watches bought in the United States Was a Timex.

INTRODUCTION OF QUARTZ
Introduced in 1970s. It changed the nature of competition in watch industry. It used an integrated circuit made up of numerous electronic components, resulting watch that was comparable in accuracy.

ADVANTAGES OF QUARTZ TECHNOLOGY

Because they are not mechanical watches, it can providing Date And Day Of the week. Produce On automated Functions so cost of production is so low. Average cost ranged between $8 and $20,but today it goes to undergone between $2 and $5.

THAT DAYS GONE

The rise of quartz technology hastened the decline of the Swiss watch industry. Swiss Watch makers refuses to accept quartz new technology. One of the low cost quartz technology watch maker at that time is Japan so, he captured whole market with rock-bottom prices.

THE BIRTH OF MR. DEPENDABLE

In Year 1983, Nicolas Hayek has take over SSIH(Swiss) and ASUAG(Society General de lHorlogerie Suisse SA). Concentrate on adopting new technology and price ranging. Hayek was fully committed to vertical integration: he was determine to build and assemble the low price quartz watch.

IMPORTANCE OF
Example : Lets say you have three similar watches. One says Made in Japan and sells for $100. Another says Made in Switzerland and sells for $110. A third says Made in Hong Kong and sells for $90. Which watch will consumers prefer? In Europe, between 75% and 95% of all consumers will prefer the Swiss watch in spite of the 10% premium. In the United States, depending on which region you are talking about, between 51% and 75% of all consumers will prefer the Swiss watch.

Quality and Durability Product Repairable in nature. Brand Name and specillialized

Too High Price Compare to the competitors Stick To the Old Technology

SWOT Analysis Of SWATCH

Expand Market Scope with low cost watches Adopt new technology (quartz)

Japanese companies and U.S. Companies like HattoriSeiko and Timex.

LEARNINGS
We have To be Updated With New Changes In market. Business strategies should be reviewed every quarter. Comprtitiors have to be taken care of. Find New Scope in market to grow company.