A- Porter 5 strengths B- Key Success Factor

C- Environmental analysis

Porter 5 strengths

Porter 5 strengths
A- Threat of new entrants
Threat of new entrants is medium to high. High market growth rate, market opportunity, and demand for the watch. Moreover, there is the moderate control over distribution channel by big player, capital requirement, and switching cost which also threatens of new entrants. But these forces are partially offset by high product differentiation, high economies of scale and economic crisis in Swiss.

Porter 5 strengths
B- Bargaining power of buyers
Consumers and retailers are the main buyers of watch and these groups differ in term of the buyer concentration and the volumes of purchase. The overall bargaining power of buyers is low to medium. Final consumer bargaining power is medium. Buyer concentration is high and retail has good information. Then, production differentiation of suppliers is medium but it is partially offset by buyer purchase in small volume. On the other hand, buyers have the high Swiss watch preference.

Porter 5 strengths
C- Bargaining power of suppliers The bargaining power of suppliers is moderate. Although the differentiation of product and service suppliers is high, this force is offset by the fact that the customers are very important to the suppliers. Moreover, the buyer switching costs are medium, threat of forward integration is medium, switching costs are medium and threat of forward integration is medium. As the result, overall the bargaining power of suppliers is medium to high.

Porter 5 strengths
D- Threat of substitute products
The overall threat of substitute products is medium since the buyers switching cost is medium.

Porter 5 strengths
E- Rivalry among Existing firms Rivalry among existing firms is medium to high because the market growth rate is very high, the brand differentiation is low, competitor can access to cheap labour cost, exit barrier is very high, asset specialization is high, switching costs are medium and emotional barriers to exist are medium. As the result, the current rivals in the market are quite high.

Key Success Factor

Key Success Factor

Swatch should expand their distribution channels into

Asia market such as China. China is the large country and recently they are opened country. Thus, Chinese will have the knowledge and accept the international brand. Swatch offers the cheap price with high quality watches, so Chinese are most likely to buy Swatchs watches

Key Success Factor

For Swatchs advertising, they should focus on the Asia

market. For example, in Thailand, most of Thais know that Swatch is the brand of watch but they do not know the Swatchs characteristics or design because Swatch advertises their watches in magazines and shops only. Therefore, Swatch should have more advertisements on TV or spot radio to access the younger target which is the main target group of Swatch.

Key Success Factor

Swatch should send the coupon in term of m-

commerce because of the intensive usage in mobile phone, so the m-commerce can access the larger groups of customer as well as creating the convenience to the customers. Moreover, Swatch should coordinate with the telecommunication network provider in each country.

Key Success Factor

According to SIT system, this system offers the

Internet time that can be used around the world. However, it creates the trouble to the most of customers because they need to remember the number on SIT for each country. Therefore, Swatch should develop the additional system in order to provide the convenience to customers such as SIT with GPS.

Key Success Factor

Nowadays, the Swatch beat is the only one model that

can be bought through the website. Thus, Swatch should develop their website that provides all available models for purchase to facilitate the customers transaction.

Environmental analysis

Technology
For the technology, there are the intensive

competitions of the technology in the watch industry. It is the consequence of the rapid change in the technology of the world. The customers will be interested in the brand that offers the innovative technology. Therefore, the innovation technology is considered as the important factor to succeed in the watch industry.

Socio-cultural
It is obvious that the different cultures will lead to the

different thoughts of the customers. Therefore, each strategy should be implemented for different countries to respond the customer needs effectively. For example, there are the different tastes between US customers and Europe customers. US customers always emphasize on the price rather than the quality.

Global Segment
To be the well-known brand in the world is the

important factor for doing the effective business in the global market because brand is the valuable intangible asset and it has more values than products. Therefore, Swatch group should clearly divide their product lines whether they make for low-end customers or high-end customers. This will be easier for Swatch to manage their watches in the effective way.