WHAT WENT WRONG: -

 Before the creation of swatch there was a huge competition from

united stated, japan and hongkong .us and japan started to gain
market share in electronic watches.
 Swiss watch industry was characterized by high degree of
fragmentation.
 A large number of independent companies are involved in producing
single watches.
 According to the market position, Swatch was positioned as a brand
name and it is not emphasized on its quality and its features.
 Over supply of cheap watches.
 They are focused only on current trend they are unable to cope up with
the forceable future.
 Competitors were the major problem for the swatch since there is a
chance of competitors switching to more sophisticated analogue model
and also many watches look alike such as A-watch etc.
 Swiss had to guard their brand recognition not only because of
diversification of the swatch line and they are having imitations in the
market and quality aspect of swatch was not known to the customers
and it is not involved in the purchasing decision.
 Swatch could not maintain its technological advantage because of
Japanese entry.
 Japanese were larger than SMH and therefore able to support larger
R&D budgets.
 Market saturation is the major issue because countries with a GDP per
capita of over $5000 comprised only 17% of the world’s population,
they absorbed 87% of swiss watch exports.
 They continued rapid development of technology especially in the
field of communications.