Swatch

Swatch

1. Inception of Swatch - High end mechanical watches, sold in jewelers shop. Jewels were used to guard against wear and tear. They were all hand-made watches and were purchased as investments

2. Nicholas Hayek reinvented the product using vertical integration (like Xara)

3. They did not outsource the supply but re-engineered the business because

a. Japan can anytime pull the supply and business of Swatch will haul

b. It was pride of Switzerland

4. Swatch launched the product in Germany by hanging the photo of a watch from a famous building (Mass marketing)

5. Resistance came from bankers and part suppliers when plastic was used to make watches

6. Artists from different background (Painters, architects, designers) – Rotation of ideas by rotating people, but minimum 6 months gestation but not more than 2 years

7. Italy – fashion capital of Europe, where it was launched

Competing for the future

· Phase 1 – Features, Competency, Low Cost

· Phase 2 – Build standard

1. Segmentation

2. Create Awareness – Branding

3. Reinvent / Re-engineer the brand

4. Brand equity and brand portfolio

5. How company can take advantage of brand strength of the country

6. Low Price