Strength:

1. Highly reputable, acclaimed and credible luxury

watch retailer.
2. Solid financial performance and overall financial
position.
3. Dynamic and vatic top management.
4. Staffs equipped with impeccable service attitude and
vast product knowledge.
5. Confers exclusivity and majestic quality.
6. Stalwart supply chain abutment of 6 key suppliers
since inception.
7. Diversified corporate portfolio less assailable /
vulnerable to specific risk.
8. Human development and unity centric management
orientation low employee turnover.
9. Reduced dependency on mature markets.
10. Backward integration less susceptible to
unwarranted supply chain disruptions and garnered
more in-depth knowledge pertaining to worldwide
trends.

Weakness:
1. Lack of management initiatives in undertaking
hedging practices to countermand exchange rate r
2. Cultural disparity and frictions resultant of
misunderstandings Japanese and Aussie employ
3. Inability to realize economies of scale shackl
limitations of craft based manufacturing process.
4. Price inelascity and niche market limited cus
base.
5. Predominantly family owned business confli
interest may ensue.
6. Overdependence on SEA markets.
7. Conservatism slant towards market expansion
abroad.
8. Unfruitful and abortive diversifications strate
misfit.
9. Paucity of skills and expertise in watch
manufacturing.
10. Alarming level of debt and gearing.

Opportunities:
1. Emerging mature markets abroad China / India.
2. Growth in consumers spending on luxury /
prestigious watches globally in mature markets (6%).
3. Dismantlement of trade barriers AFTA.
4. Rising living standards in SEA countries.
5. Increase affluent young professionals with high
income.
6. Boom in wealth creation and industrialization.
7. Increase in status conscious and materialistic
consumers in mature markets - 4.7%. (Kantar 2013)
8. Emerging prevalence and popularity of e-commerce.
9. Flourish of advertisement sectors globally.
10. Increasing population of technology savvy
consumers.

SO:
1. Large scale expansion into emerging mature markets
China / India. (S1,S2,S3,S9 and O1,O2,O4,O6,O7)

WO:
1. Employing consultant externally to ensure due
diligence is factored upon acquisition decisions.
(W6,W7,W8 and O5)
2. Establishing The Hour Glass virtual stores acro
markets in presence for selected range of watches
(affordable category mostly). (W4,W6,W7 and
O4,O5,O8,O10)

Threats:
1. Global financial crisis.
2. Governmental policies and restrictions.
3. Foreign exchange rate risk depreciation in value of
host country currency.
4. Introduction of substitutes smart watches.
5. Increasing in-house distribution approach adopted
by prestigious watch manufacturers leading to mono
brand / specialty stores. (vertical integration)
6. Political measures leading national sentiments in
supporting nation-flagged brands or higher taxation
imposition.
7. Intense competitions exerted by large scale luxury
watch retailers in mature markets abroad.
8. Economy recession periods diminished spending
on luxury items.
9. Rising rental rates property appreciation.
10. Fuel price hike increase in overall operating cost.

ST:
1. Delve into development of affordable range of
watches catered for middle range market. (S1,S2,S10
and O7,O8)
2. Venturing into luxury / high-end smart watch
manufacturing. (S1,S2,S4,S10 and T4,T7)

WT:
1. Acquisition of luxury online retail websites suc
Farfetch to complement current portfolio while
leveraging synergy amongst compatible portfolio
(W1 ,W4,W6,W7,W8 and O2,O5,O7,O8,O9)
2. Establish The Hour Glass Finance aimed at
providing customers financing options such as loa
etc. (W8,W9,W10 and T7,T8)

Internal

External