Abraham-Louis

Breguet

created the

first known wristwatch

in history in

1810

, for Caroline Murat, sister of the Emperor Napoleon l and Queen of Naples.

History

• In the 1970s , the watch making of Swiss city fell in an unprecedented crisis. • The people of Switzerland: if you are not sleeping, you are making the watch.

• The Swatch group was created by Nicolas Hayek with the merging of the ASUAG and SSIH in 1983 .

• Headquarter is Biel, Switzerland • In 1998 , it was renamed the Swatch group.

History (cont.)

•

Product:

Watches, jewelery, electronic systems for timekeeping.

• •

Brand:

Swatch, Omega, Rado, Longines Radar, Tissot, Calvin Klein, Blancpain , Mido, etc.

“S”watch

: “Second-watch”or “Swiss-watch” • • In 1999 , Swatch purchased the famous brand “Breguet” to expand the top luxury in the table.

Employees:

23,560 (2009).

Current and Future Profile

• Swatch is a very popular watch company that began twenty seven years ago.

• In 2009 Swatch reached a gross sale of nearly six billion.

• There are more than 400 new designs through swatch group every year • New conveniences such as cell phones may potentially hurt Swatch • Proper Fashion updates is necessary

SWOT Analysis

•

Strengths

• profusion colors & lively design styles • plastic sheet, 51 parts, save a lot of cost • has a lot of permanent customs •

Weaknesses

• fashion style just for most young people • no variety market around the world • mainly produces the wrist watches • Not comparable price advantage

SWOT Analysis(Cont.)

•

Opportunities

• show its creation and love of life • enormous potential market •

Threats

• so many competitors • customs have special taste • The requirement of the world

Global Market Expansion

• Swatch is the second largest watch company with having 18 brand watches • Low cost and good fashion designs has made Swatch very popular • New automated assembly line produces 35000 watches a day including millions of parts • Labor reduced 30% to 10% to ensure quality • 1983 to 1992 Swatch hit sales breaking 200 million watches

Industry Analysis

• Luxury watches (most expensive) • Average price of all watches is $125 • Sport watches • Most expensive outfit accessory on average • Casual watches

Problems for the Industry

• Cell Phones • Clocks • Computers • Cars

New Industry Innovations

• Internet capability • Weather updates • Environment friendly (solar powered) • Thermal powered • Spring drive • Satellite calibration • * industry up 4% in past year

• Revenue of $7.72 billion • Creators of the • G-Shock (a popular collector’s watch) • Added solar technology to G-Shocks • Created Atomic Timekeeping watches • 5 transmission stations (2 in Japan, 1 in America, 1 in Europe, 1 in China)

• American based out of Connecticut • Recently introduced “Expedition watches” • America’s largest watch manufacturer • Official timekeepers for New York City Marathon and New York Giants • “takes a licking and keeps on ticking” • Yearly revenue of approximately $700 million

• Japanese company based out of Tokyo, Japan • Founded in 1881 and incorporated in 1917 • Revenue of $2.64 billion • Invented the kinetic and thermal powered watch • Official timekeeper of 5 Olympics and 4 World Cup soccer tournaments • Invented the revolutionary quartz watch

Short —Term Recommendation

•

Focus marketing towards lower priced watches

• Reason: the economy is in recession •

Purchase other companies to increase market share

•

Advertize products in TV commercials and magazines

• Reason: brand image is not impressive this time.

Long —Term Recommendation

•

Expand Globally

• Reason: as a global corporation, expanding is a basic and necessary strategy.

•

Market to an older generation

• Reason: Swatch’s products are almost concentrated solely on young generations • Marketing to older generations increases potential consumers for business

Long —Term Recommendations

•

Change the design strategy to be new and creative

• Reason: as a creative company, it would transfer its creativity in designing wrist watches to designing ring or necklace watches.

•

Focus on some environmental friendly watches using some green materials

.