THE SWATCH GROUP

SWATCH GROUP OFFERINGS

Watches
Luxury: Blancpain Omega Rado Longries Middle Range: Tissot Certina Mido Pierre Balmain Calvin Klein Basic Range: Swatch Flik Flak Lanco

Watches and Component Mfg.

ETA Piguet Habillage SMH Assembly Comadur Nivarox-Far Omega Electronics

Electronic Systems
EM Main Micro Crystal Oscilloquartz Renata Lasag

General Services
R&D SMH automobile Swiss timing Finance Real estate

SWATCH GROUP MARKET SHARE

Worldwide Watch Market Markets (volume)
North Others,, 8 , 0 , 0 Swatch, 14 Citizen, 12 ,0 0 % % Fossil, 2 Europe, 35Swatch America, 2% % % 5% Citizen Others, 30 Europe Seiko % Asia Asia, 32% Tag, 3% Movado, 2 Vendome, % 9% Casio, 8% Rolex North America Vendome Others Casio Tag Rolex, 9% Movado Seiko, 11%

CRISIS IN SWISS WATCH INDUSTRY (1970S)

Japanese and Hong Kong manufacturers penetrated the world watch market with low cost watches.
Access to cheap labor y Mass production y Quartz technology
y

Swiss manufacturers
Inability to adapt to the changing market conditions. y Reluctance to focus on building innovative and competitive new products. y Poor R&D and brand management.
y

HAYEKS PROPOSALS
1. 2.

Merge SSIH with ASUAG. Develop a low-cost, high quality plastic watch brand. The same watch model would sell substantially better if it carried the Made in Switzerland label. If you sell high volumes, you can automate and keep improving on productivity. Young people are most likely to buy low-priced watches. Mass market brand facilitates consumer communication. Occupying large part of lower end keeps competitors fighting there instead of moving up.

LAUNCH OF SWATCH
High quality, low cost, joy of life, challenging society
o

Turned time keeping into fashion. Different Swatch models for various occasions and personalities. Names such as Dont be too late, Tutti Frutti, Hollywood Dream.

SWATCH INTERNET TIME(SIT)

o

SIT divided every day into 1000 beats equivalent to 86.4 seconds each. Each day began @000 and noon at @500. New meridian line was created that that passed over Swatch headquarters in Biel, Switzerland(BMT). New Swatch Beat launched keeping both internet and local time. Swatch started offering free internet time clock software for PCs on its website.

Thank you