http://www.youtube.com/watch?v=rPa7mrtNEYE&feature=related

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)

• Sport watches

• Casual watches

• Average price of all watches is $125

• Most expensive outfit accessory on average

Problems for the Industry

• Cell Phones

• Computers

• Clocks

• Cars

New Industry Innovations

• Internet capability

• Environment friendly (solar powered)

• Satellite calibration

• Weather updates

• Thermal powered

• Spring drive

• * 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

• America’s largest watch manufacturer

• Official timekeepers for New York City Marathon and New York Giants

• Recently introduced “Expedition watches”

• “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

• 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.

Long—Term Recommendations