The Birth of the Swatch

Group 2
● Krishna Akhil Teej Pagadala
● Onyebuchi Isidore Ejesi
● Prathik Venkat Jogi
● Niharika Mandada
● Tejaswi Yerreddu
● Murali Krishna Vunnam

Date: 9/23/2021
Executive Summary

● The evolution of Watches

● The swiss watch brands
● Competition amongst Brands
Problem Statement
● Meticulously crafted
● High Production Cost
● Low-Cost Competition
Decision statement
● New Designs
● Low-cost watched
● Branding
● Advertising
● Situation analysis (SWOT)

Strengths -

● First mover advantage

● Diverse product portfolio.
● Managing regulations and Business environment.
● Intellectual property rights.
● Strong brand awareness

Weakness -

● Implementation of Technology in processes.

● Lack of Structure, Strategy and Management
● Pricing
● Situation analysis (SWOT)

Opportunities -
● The Swiss concept
● Changing Technology landscape.
● Increasing standardization.
Threats -
● International competition
● Cost of production
● Growing protectionism.
Identification of Alternatives

● Merging of the two swiss watch companies

● Embracing the quartz technology
● Birth of Swatch
 Criteria Used for the Analysis

Original product strategy

○ Went up against asian companies which is highly risky.
○ Cost of production and labor lower in the asian countries
Pricing strategy
○ Swatch pricing strategy was impeccable due to high competition in
a low end market.
○ Kept the same price level
 Criteria Used For the Analysis Contd.

● Swatch’s message
○ Swatch marketing consisted of promoting their product.
○ They also used special events to promote their product.
○ Swatch is not just affordable, its approachable
 Criteria Used For the Analysis Contd.

● Swatch concept
○ Hayek product targeted the quartz watch market in the form called
Swatch.
○ The swiss had 97 percent of the market share f
● Designs and Collections
○ We noticed that these watches were very unique and feature intense
colors
 Analysis/Evaluation of each alternative

Pros:
● Affordability
● Mass production
● Self Image
Cons:
● Cheap products
● High cost of production
● Rigidity
Qualitative and Quantitative Analysis
Recommendations
1.Implement new mfg. unit to watch designs to commit to vertical integration
and broaden its marketing presence.

2.Increase and develop consistency for consumer demand

Recommendations Contd.

3.Maintaining competitive advantage being aware of their consumer contact

4. Implementing swatch brand with a unique message and product

differentiation.
 Thank you!
Comments and Questions?