Introduction

Welcome to Switzerland!Welcome to Switzerland!

TheSwatchGroup

Method

Effects

Innovation

Success

Country

Part 1

Shift

Company

Switzerland’s Society

Political

Cultural

20 states and 6 semi-states: All states have independent rightsDirect democracy: citizen’s participation is rather passive

STABILITY AND SECURITY

PERMANENT NEUTRALITY

No involvement in wars since 1515: stabilized economyStrong image of peace

TheSwatchGroup

Country

Effects

Success

Shift

Company

Part 2

Why?

Investment

Cheap materialsAutomated production

Strong and reliableAffordable by all

DisposableExpensive family jewels

Highly skilled craft

Quartz technologyWorldwide production

Precise, durable, cheapGlobal mass market

1950s

1970s

Original

Change in Watch Market

Development of technology

“attack” on traditional market

Change in Watch Market

“They make junk

and give it away”

:Swiss’ response

CYCLE OF DOOM

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%World value percentage

1946 1979 1983 19861970

Change in Watch Industry

Management, Marketing, Struc-tureStrategy, Research & Develop-ment

Revolution of SMH(Swatch Group)

55%

14.3%

2.5Billion

15%

-11.5%

1.1Billion

Quality

Price

Fashion

Updates

World

The Blue Ocean Strategy

Jewels Accuracy Product durability

Name value

Fashion function

Model di-versity

Low price

Functions

High value

Low value

Swatch

Quartz analogue

Mechanical

Quartz digital

TheSwatchGroup

Success

Shift

Company

Why?

Effects

Investment

Part 3

Country

Safe country for investment

Developed Country

Competitive in World MarketEconomic stability

International Relations

‘91: IMF and World Bank‘02: United Nations

Switzerland’s Economy

Constant rise in share price

Graph: Swatch Group share price change Drop in the graph: economic crisis

Fast recovery

Increasing share priceIncreasing share price

Highly segmented market with new niches

2009 Economic Crisis – and 2010 Recovery2009 Economic Crisis – and 2010 Recovery

<Swatch Group Half-Year Report 2010>

Highly segmented market with new niches every 3 months - New Design unique namesTechnological Advance

Creation of the number of modelsCreation of the number of models

INVESTMENT!

3

1 5

42NEEDYOUR

INVEST

Need for innovation

-Limited designers

-In number and culture

An open design market-Similar to app market of Apple

Image upload in

homepageVote on watch designs

-Similar to [like] system of facebook

Choosing the watches

-30-50 watches every 3 months

- Revenue shared with designers

AdvertisingAdvertising

GlobalGlobal

CreativeCreativeACG

Effect

ACG

Effect

Now it is time for youNow it is time for you

to make the best choiceto make the best choice