The Swatch Group Essay examples -- Business Management Marketing Essay

The S turn back root word Competing In An Increasingly globular Market For WatchesNicholas Hayek and Ernst Thomke create the Swatch Group (the Group) in 1983 by merging dickens bankrupt watch-making groups. The merger gave the Group ownership of many a(prenominal) of the Switzerlands superior watch brands. Swatch, their first product initiative, was so triple-crown that it serveed pull the blow Swiss watch industry out of a slump. In June 1999, with its 14 brands, the Group was the worlds largest watch manufacturer (in value terms). However, the globose industry had changed and would continue to change dramatically in the new millennium. The Swatch Group was at a strategical crossroad and had to analyze the industrys past and future in order to determine its next move. What restoration is an in-depth analysis of the Swatch Groups competitive position the world-wide watch industry. We will identify a problem and offer several option actions to address this problem. Final ly, we will discuss how to implement and evaluate these suggestions.Industry cinch 1999Historically, the watch industry had been fragmented and protected by the national governments of many countries. In the 1980s and 1990s, however, the competitive environment began to change. First and foremost, newly formed companies began to mass-produce low-cost, technologically advanced watches. The emergence of these products dramatically changed the way stack bought and sold watches. Another dominant factor for change was consolidation. As companies merged, they alter their competitive positions through improved distribution, R&D, marketing, and economies of scale. These conglomerates slowly became major global players against which many watch manufactures could not compete. Initially, Swiss watch manufactures chose not to act to many of these changes. They valued the inherent art of watch making and as such refused to succumb to the competitive pressures of large multinationals such as Seiko and Citizen. As a result, the industry took a dive in the late seventies and early 1980s. Many companies and groups went bankrupt. Included were the two major groups that Hayek, together with a group of investors, bought back from Swiss creditors. In just a fewer years, they lifted the merged company (the Swatch Group) out of financial turmoil. Through strategic initiatives, they streamlined and rejuvenated many of t... ... entice consumers and improve brand image. Both strategies would help increase market share in a high-margin/low-volume segment. Let us now discuss how to best implement these suggestions. ImplementationThe key to successful implementation would be proper planning. The Group may have to restructure the way its units are organized so as to get around determine which brands would be most viable in each geographic area. Under this plan, the Group would open new retail shops in which it would exchange its own brands and any complimentary items that consumer s would associate with watches. First and foremost, the Group should turn up high tech, JIT-ready distribution centers in the geographic areas in which it plans on coal scuttle new retail shops. This would ensure that the shops stay replenished, but not cluttered with too much merchandise. The Swatch group would also need to expand its enquiry and development staff. It would need to hire younger, creative people who know what is difference on the world of technology, sports, and the arts. As such, they would be in touch with the need of these markets. Only then could the Group determine what innovative products to develop and market.