- The Swatch Group Ltd is a major player in the watches

industry, through its many acquisitions of majority stakes

in smaller Swiss watch-making houses since the mid-1990s.
Swatch is not only a leader in terms of its brand portfolio,
but is also the single largest supplier to the entire Swiss
watch industry. => existing success potentials (strong
position in market BUT not in the top part market share
compared to Swatch is currently not in the top part of the market share,
with the market share dominated by the likes of Rolex, Omega, and Tag
Heuer. So, Swatch is still in the phase of gaining their local strategic
target audience in order to fully specify their mission and vision 1.)2

- STRATEGIC EVALUATION
o Key company facts- Company profile
o Financial performance
o SWOT: Swatch Group Ltd, The
o Key strategic objectives and challenges
- COMPETITIVE ADVANTAGES : RELATIVELY LOW-PRICE
AND HIGH QUALITY PRODUCTS3
- PROBLEM STATEMENT4
o Swatch is already an established brand in the market.
However in Malaysia, people may have different and
negative perspective toward the brand.
o Swatch is known for their simplicity and stylishness,
and their watches are known for using plastic element
as the main material. For that, people tend to believe
that the price of Swatch watches are unreasonable
and expensive, most people would compare the high
price of Swatch with those cheap watches in night
1 http://swatch-project.blogspot.ch/p/situation-analysis.html

2 http://www.euromonitor.com/swatch-group-ltd-the-in-personal-accessories/report

3 http://de.slideshare.net/WaiKitNg/marketing-project-54637686
4 http://swatch-project.blogspot.ch/p/situation-analysis.html

market that look almost the same, regardless of the

high quality of Swatch watches.
o The other problem is that Swatch is less known for the
quality of their products, this is because they
emphasize mainly on the design of their watches.
So, people would question about the price of their
product.
Problem with market offers and resources => affecting
existing success potentials => Suggestion:
Reassessment the strategy (marketing Strategy,
resources alternative, redefining target costumer
group...)
o Objectives
Emphasize on the quality of the products
through advertisement
Bring the brand closer to the people by
organizing exhibitions and contests
Change the way of approaching people using
the brand image
o Aims
To have people realize the quality wise of
Swatch products
To balance the product image between the
design and quality wise
To change people's perspective toward the
price of the products
PRODUCTS

PRODUCT LIFE CYCLE

Strengths of product

Weaknesses of product

Comes in a variety of colors

Attractive designs

Lightweight materials

Durable and reliable quality

Accurate time consistency

Glow in the dark numbers

Water resistant

Easy to clean materials

Plastic materials may scratch easily

The back of the watch trap dirt easily

Exposed battery design may cause internal

problems

The pins that connect the watch to the strap

get loose easily

The rubber strap may be uncomfortable for

some people

Advantages

Customers will be able to choose color to

match their clothing appearance

The watch is able to be one of the fashion

style in user's appearance

Easy and comfortable to wear due to

lightweight materials

The users can wear the watch in any daily

activities

Users will not have to worry about time

inconsistency of their watch

The watch can be seen in the dark easily

because of the glow in the dark material

Users will not have to worry about the watch

being exposed to water

Users will not have to worry about the watch

getting dirty

Disadvantages

Users will have to be careful not to have the

watch scratching with other things

Users will have to clean the trapped dirt

regularly

Users will have to avoid dirt getting through

the exposed battery

Users have to be careful not to lose the

connecting pins between the watch and the
strap

Users may eventually stop wearing the watch

because they are not comfortable with the
rubber strap

Corporate Vision

To become the biggest watch manufacturer in the world

To become an icon in fashion appearance
To strive to lead the global intimates market to achieve profitable growth

Corporate Mission
To have strong brand image & identity
To become the fashion trend among consumers
To gain local customer loyalty

Swatch is an established watch brand that emphasize on

design wise and it is targeted to YOUNG PEOPLE.
COMPETITOR
the Rolex Group, the Richemont Group, the LVMH Group, the
Citizen Group, the Seiko Group, and the Desco Group.
However, as the biggest watch manufacturer around the world, the
Swatch group has a comparative advantage over the competitors. 5
RECOMMENDATIONS
Short term
-

Explore new materials to make up watches (replace the iron and plastic.
more environmental friendly and low cost. And it will make things better if it
is recyclable => more competitive in the future; environmental friendly is
the trend after all)
React to different preference of consumers from different countries positively
Take actions to reduce counterfeit goods.

Long term
-

the Swatch Group should improve its operation management and

concentrate on researching and innovation.
Joint venture is a good way to vary marketing strategy to adapt to the
current globalization. (improve the corporations sales and reputation
while reduce risks)
Choosing a variety of products or marketing methods in accord with different
countries and assembling multiple advantages within one brand are
suggested.

FINANACIAL FACTS

Biel / Bienne (Switzerland), 21 July 2016 Half-Year Report 20166

Group net sales of CHF 3716 million at current exchange rates, a decrease of 11.4% (also
decrease from 2014-2015 -3%) , or CHF 3666 million, a decrease of 12.5% at constant rates.
=> reassessing in strategic planning
In the Watches & Jewelry segment, including Production, Swatch Group recorded a
decrease of 11.3% at current exchange rates.
Double-digit growth in retail sales in Mainland China and Southeast Asia.
Hong Kong: retail sales downturn has bottomed out, wholesale remains difficult.

5 http://www2.dsu.nodak.edu/users/rbutz/International
%20Business/PDF/The_Swatch_Group.pdf
6 http://www.swatchgroup.com/en/services/archive/2016/half_year_report_2016

Operating result of CHF 353 million, 53.6% below the first half of the previous year, due
to additional currency shifts, lower production utilization and the long-term industrial
strategy of continued investment in the employees, new products and marketing. The
operating margin reached 9.5%.
The Watches & Jewelry segment, including Production, achieved an operating margin of
11.2%.
Net income of CHF 263 million, 52.0% below the first half 2015. Net margin was 7.1%.
60% Swiss made in the watch industry as of 2017 is a clear advantage for Swatch Group,
with its verticalized local production base. Inventories have already been increased
accordingly in order to meet future demand for Swiss made products.
Harry Winston with a strong half-year and a record month in June.
Clear improvement in Mainland China. The first three weeks of July show a very positive
development compared to last year, especially in the Luxury and Prestige segment, very
strong for Breguet, Blancpain, Glashtte Original, Omega and Longines.
United Kingdom with a strong July start in the Groups retail stores, due to the favorable
pound sterling. Clear signs of tourism revival in parts of Europe, mainly in Spain and Italy.
Additionally, Omegas engagement in the Olympics in Rio de Janeiro will generate further
positive stimulus. Overall clearly a stronger second half-year will be expected.

OTHER REFERENCES
Sample of report: http://store.globaldata.com/companyreports/consumer-packaged-goods/the-swatch-group-ltduhr-financial-and-strategic-swot-analysisreview/contents#.V-oGS7k2vu0
SWOT: https://prezi.com/ty2ibod8cfym/swatch-group-investment/
Watch market share by company:
http://www.tumotech.com/2014/09/04/sony-chief-admitssmartwatche-aesthetic-problems/ ( 2014- Swatch 18.3%)