Tag Heuer Strategy: Comparative Analysis of Switzerland and UAE

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[...] STRATEGIC MANAGEMENT TAG HEUER : COMPARATIVE ANALYSIS SWITZERLAND / UAE I ) INTRODUCTION Why the Swiss Market ? Because it's the original market for watches :  Date of Creation : End of the 16th century by Jean Calvin (founder of the Swiss Watch manufacturer foundation) in Genève  3rd Swiss exports sector (after chemicals, industrial machines) with a turnover of 11.3 Billion €  40,000 people employed Different firms (manufacturers, suppliers, producers Why the Swiss Market ?  Turnover : 565 Millions € of the global market)  More than 180 worldwide known brands (average staff : 70 employees)  Biggest brands (in value FY 2006-2007) : – – – – Rolex ( 3.9 Billion €) Cartier ( 1.9 Billion €) Chanel ( 334 Millions €) Hermès ( 289 Millions €) Why the UAE Market ? [...]

[...]  Average employee age : 38 years  Number of subsidiaries : 25  Number of Authorized Dealers : 5600 in 2005 (8000 in 1999) in 120 countries III) PEST ANALYSIS III) PEST ANALYSIS – POLITICAL/LEGAL SWITZERLAND   Currency : authorization to use €uro currency in many parts of the country Government : representative democracy (federal collegial system, unique in the world) Source : www.admin.ch UAE  Currency : unique currency planned for 2010 (currently, each emirate has its own currency)  Government : Federation of 7 states called Emirates (Federation National Council) www.uae.gov.ae III) PEST ANALYSIS – POLITICAL/LEGAL SWITZERLAND   Environmental protection : high and fully enforced regulation standards + financial incentives Protection of domestic enterprises : tax breaks and investment credits Source : www.admin.ch UAE  Employment : no minimum wage prescribed  Working conditions : max. [...]

[...]  Caricature of the Western countries' way of consumption  15 millions tourists/year  Watches market : 20% to 30% growth last 3 years Source : http://journal.hautehorlogerie.org/ II) TAG HEUER : PRESENTATION TAG HEUER PRESENTATION  Date of creation : 1860 by Edouard Heuer in « La Chaux-De-Fonds », Switzerland.  Vision : be avant-gardist (Swiss avant-garde since 1860) 1882 : First patent for time record (chronograph) 1960' : reference in the world of motor racing   TAG HEUER PRESENTATION  1985 : Acquisition of Heuer by TAG Group  1985 : Entry in the world of Formula 1 and sponsoring of pilots  1999 : takeover bid by LVMH and 100% membership since this day. [...]

[...] Squared form, immediately identifiable  The most popular range, with a rich history and deeply rooted in the motor races world. Big collection value for the original models VI) 4 P Analysis – Products Aquaracer collection : sport collection : the main features of these watches are the resistance, precision, simplicity of use and longevity. For accomplished sportsmen PRODUCTS SPECIFICATION : All the Tag Heuer watches are : Internationally guaranteed 2 or 3 yrs (Grand Carrera)   A special range for sporty people, simple to use and resistant to any treatment to an affordable price. [...]

[...] The following watch  has been produced in only 3 copies in the world and its cost is “inestimable” according to Tag Heuer Website. Sources : www.tagheuer.com , www.lacotedesmontres.com VI ) 4 P ANALYSIS - Place SWITZERLAND  Distribution Channel : UAE  Distribution Channel : Exclusively through authorized dealers Partly through authorized dealers (which ensure sales & little aftersales Emirates) and partly through its own (present in several cities across the service), which cover all the Swiss shops in the Emirates) which are the territory symbol of the brand  Types of shops :  Types of shops : Situated in high traffic zone (walking Mainly in high traffic centers (Mall, zone, shopping centers) or in strategic Shopping Center . [...]