1. Swatch is a unique Success story. Why has the company been so successful? Was it important that the Swiss watch industry company recapture the lower end of the market?why? why not?
The outstanding success of a Swiss watch manufacturer during the 1980s was the result of a careful and well-executed marketing plan, brought on by necessity.
For years the Swiss were world leaders in the watch industry. In 1974 their worldwide market share was 30%. Then the Japanese actively began to produce and market quartz watches, which the Swiss viewed as a passing fashion. Quartz digital watches were, however, no fad and by 1983 the Swiss share of world markets for watches had fallen ...view middle of the document...
They were not sold in high-street jewellery stores, which the company believed were an inferior point of sale for the product. The marketing strategy was based on carefully controlling distribution to avoid flooding the market, which would have resulted in consumers losing their desire to own a Swatch.
Today, Swatch watches sell for a relatively low price which appeals to a large number of consumers and encourage multiple purchases. The watches are highly distinctive. Extensive product promotion, which includes advertising on TV and in magazines, together with sponsorship of various concerts and sporting events, generates further sales.
Successful marketing has greatly increased market share and enabled the company to introduce new product lines, such as clothing and telephones, using the Swatch name.
It was important that the Swiss watch industry recaptured the lower end of the market. By doing this, sales and the industry of the Swiss watch will not die and it will still be visible and available in different store, and ordinary people with the average income can still experience and use the quality and fashion of Swiss watch, but if we are going to talk about Swatch recapturing the lower end of the market that will be a far cry from now.
2. Do you see the parallels between the declines of the swiss watch industry and other western industry ?
Asia is becoming active in manufacturing and export of their products. China that is now involved in the global market and it is beginning to establish and create the image as the World’s manufacturer. Technology is also part of the expertise of Asia; Japan is now one of the most advance countries in terms of machines and different infrastructures. Most of the products of China are now available in different part of the globe in a very low price almost half of the price of products from other country but the quality is another topic.
Example of this is the decline of shoe industry in America in 1992. This is because of the North American Free Trade Area; Mexico can offer a cheaper shoe ware. Because of this the production of shoes in America decline about 2 percent from 182 million pairs a year. Slippers declined by 4 percent to 32.6 million pairs; men’s footwear by 3 percent to 42.2 million pairs; and women’s footwear by 3 percent to 59.8 million pairs (Byron, 1992). Because of the low-cost shoe wear from Mexico, the shoe industry of America decline on 1992. This is just like the current situation of the Philippines, because of cheap shoes from Korea and China, the shoe industry is starting to decline. Most of the time, the consequence of low-cost product is low-quality, because most of the raw material use is low-quality. Other examples are the textile and clothing industry, and if not because of the use of technology and marketing strategy, these two industries will never recover.
3. Evaluate the Cultural dimension of the swatch story taking in to...