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Presented by: Jackie Rezk, James Person, Simon Kegler, Marc Chabane, Stacy Martinez, Jordan Martinez, Joe Cassissa
Background
SMH controlled 9 global Swiss brands including Swatch. Prior to the 1950s, watch-making was a craft that required the skills of a master jewelry maker. The Swiss dominated the watch industry.
Problem
The Emergence of Low Cost Competition
With the introduction of low cost competitors, the Swiss share of the global market declined from 80% in 1946 to just 42% in 1970.
Arising Competition
In 1951, Timex introduced a low cost watch. One of every three watches sold was a Timex Quartz technology was introduced in 1970 and changed the industry once again.
The 4 Ps - Product
Product 1.Quartz Made in Switzerland
The 4 Ps Price
Price $40 SFr 50 DM 60 7000
The 4 Ps - Place
Place Designed in Italy, made in Switzerland
The 4 Ps - Promotion
Promotion - always deliver a message!
SWOT Analysis
Strengths
Swiss Quality
Made in Switzerland label was a global seal of quality,
all of the watches sold and built most of the components for the watches assembled.
Decentralized Marketing
Each of SMHs nine brands had total authority over product designs and marketing.
SWOT Analysis
Weaknesses
Price
SMHs flagship high-end brand (Omega) sold for between
people.
Retreating Attitude
The Swiss refused to compete with Japan and Hong Kong companies.
SWOT Analysis
Opportunities
Mergers
SSIH and ASUAG merged to create Societe Suisse de
SWOT Analysis
Threats
Competition
U.S. Time introduced disposable watches. Several Japanese companies begin expanding.
Technology
In 1970, Quartz technology is introduced allowing
Alternative Solutions
Problem: The emergence of low cost competition
Solution 1: Compete In Each Market Segment
Compete directly with Quartz competition & low cost
mechanical
watches (Timex)
Solution 2: Dominate High End Market
Solution 3: Create Alternative To Budget Watches
5 4 4
3 4 3 43
1 2 5 33
5 5 3 57
Quality Perception
Sum
Create Vertical integration Efficient production techniques and manufacturing processes Unique mkt msg. Distribution strategy: Retail POS Design: New fashion appeal Low-price mkt segment
Value
Pr ice Ra w Ma ter ial s
Pr es
Strategy Canvas
Factors
Ma rk eti ng Po rt fol io
Swiss Swatch