El éxito de la empresa Swatch

SWATCH CASE

Switzerland has a particular system of government, that differs from many existing today, which is commonly known as direct democracy, but rather a semi-direct democracy and in practice only two cantons now preserve this system. Referendums have been called the most important laws from the constitution of 1848.

The landscape is characterized by the Swiss Alps, a high mountain range that runs through the central and southern country. The north part of Switzerland, the most populous, is more open but still is moderately hilly. The Swiss climate is generally mild, but can vary greatly depending on location, from the severe weather in the high mountains to the pleasant Mediterranean climate in the south.

Despite the lack of natural resources, the Swiss economy is contained within the most prosperous and developed world. Their economy is based on Banks & Investment Co, Swiss watch industry and Chocolate Factories. The unemployment rate is particularly low and the inflation rate.

SWATCH is a brand of quartz watches (some available in Automatic) produced by The SWATCH Group Ltd. The SWATCH was originally intended to re-capture the level of market share lost by Swiss manufacturers during the aggressive growth of Japanese companies (such as Seiko) in the 1960s and 1970s.

Product Price

• Quality

• Style

• Durable • Low cost of manufacture

• Good relationship between quality and price

Distribution Communication

• 95 % exported products

• Controlled distribution, not looking to flood the market

• Models for any type of person

• Sponsor of sporting events

• Presence in all type of environments

Here, the answers to different questions about the case exposed.

Questions 1 and 6 are focus on studying the success of the SWATCH company, questions 2 and 3 discuss the importance and impact of SWATCH in history and questions 4 and 5 aim to study the possibility of expand the SWATCH company.

DISCUSSION QUESTIONS

1. Swatch is a unique success story. Why has the company been so successful? Was it important that the Swiss watch industry recapture the lower end of the market? Why? Why not?

SWATCH is not a unique success story but it's the most successful because they’re producing a fashion watch under a low prices and that's give to the Swiss company the opportunity to compete with the Asian factories like Seiko and Citizen.

2. Do you see any parallels between the decline of the Swiss watch industry and other Western industries?

Currently, Asian countries are becoming on of the major exporters and importers of its products (They produce all kinds of products), which actually make all Western industries decline.

In addition to the decline of the Swiss watch industry, it has also been other cases such as the decline of the footwear industry in the U.S., because Mexico can offer a cheaper shoe ware or the decadence of the textile industry in Spain.

3. Evaluate the cultural dimension of the Swatch story, taking into account such practices as the willingness to bring in people from other industries, to delegate authority to younger executives, and to employ new media such as rock concerts and music videos.

Dr. Thomke made two important decisions in his first year. The first one was to sell Swiss watch (SWATCH) all over the world instead of restricting such sale to Switzerland that allowed the group Asuag-SSih to improve its technological base through increased production. The second one was to recapture the lower end of the watch market by

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