Strategic analysis of Swatch

Extract

[...] By 1983, his strategy paid off, the results were higher than expected. In 1984, thinking hard as iron in the quality of the company, Hayek took part in the capital of Asuag and SSIH at 50% for $ 40 million, at the same time becoming partner owner of Omega and Tissot, the group subsequently took the name of the Swatch Group. In order to revive Omega, he immediately decided to remove over 85% of product line, and in 1995 he continued to innovate by being the first to propose the use of a muse to promote the brand, Cindy Crawford, the then at the height of his fame, with the slogan "It's my choice" the brand experienced an immediate success: sales multiplied by 4 In 1997, he diversified its brand portfolio by launching Calvin Klein watches Reasons for success Swatch, to promote all of its brands, forced shops those were interested in selling its products to highlight the group's other brands as well. [...]

[...] It is neither Swiss, nor a watchmaker, it is of Lebanese descent, studied mathematics in France, and married the daughter of a Swiss industrialist, and founded a consulting firm. In early 1980, he discovered the world of watch making, via his consulting firm; he was responsible for restructuring Asuag and SSIH (two companies of the watch industry, at the edge of bankruptcy). It therefore applies to this sector which is his specialty: cost control and reorganization of the production process. At that time, competition is mostly Japanese and Swiss watches have an outdated image. [...]

[...] Conclusion Swatch Group has always adhered to the fashion muses, licenses . this is what makes the group's brands still popular among consumers. But what really enhances the power of Swatch Group, is its very talent to manage the business, manage suppliers, control competition, imposition on the dealer network to sell trademarks as to the group, it is this vision of the market which enables the group to keep its leading position on and to have record- breaking numbers (for both turnover and profits for). [...]

[...] So much so that, with the exception of Rolex, Swatch competitors were obliged to pass by Swatch Group to source components. Thus, Swatch could fully control its competition. This position was further strengthened when Swatch Group acquired Universo in 2000, company that owns more than half of the world market for watch hands. Thus, Swatch is used primarily for all of its 18 brands, components, and also provides to its competitors. Playing on prices and production times and delivery, Swatch could only strengthen its leadership. [...]

[...] It is the undisputed leader in the watch market. The brand offers watches that can suit anyone's pocket, it starts from the entry level with a price tag of 48 euros to euros Swatch, it is not a brand; it is a group of colossal power The group Swatch manufactures plus 17 million watches a year, it perhaps represents only of world production by volume ( 1.2 billion watches are produced each year), but in value, the market share of Swatch Group is around which suggests that products from entry level (basic Swatch watch in plastic), are the only means to enter to the consumer's heart to seduce him and bring him to buy more expensive products, perhaps on other group brands (Calvin Klein, Balmain, Rado, Tissot, Longines, Omega So, what is the strategy that has brought Swatch Group such popularity? [...]