SWOT analysis for Swatch:
Swatch enjoys consumer loyalty. This was further enhanced with the launch of Swatch Members Club. It is a collectable, which has proven to be a hot asset and has raised high prices at auctions. 2.
It enjoys an esteemed brand position in the world market as being one of the most successful brands of the Swiss Conglomerate Swatch Group. 3.
It has a variety of product lines, including Bijoux Jewelries: which has new designs for every season with a mixture of fashion, art and sports. 4.
Swatch builds a worldwide sales distribution channels.
Swatch has a very good finance performance, revenue, gross profit, operating income and net income are all increasing.
The watch market is becoming very fragmented which makes the promotion of the brand difficult. 2.
Swatch has been facing a very low turnover of its assets compared to its competitor’s parent company. 3.
The productivity per employee is weak hence affecting the financial profits of the parent company. The productivity of Swatch Group is $0.2Million Compared to $0.3 Million of its competitor’s Seiko. 4.
The production costs of company headquarters are too high. Swatch’s competitors locate manufacturing activities in low-cost countries t. But Swatch had always committed to its Swiss home base. It is a big disadvantage to make watches in one of the most expensive countries in the world. Opportunity：
Improved economic condition in developing countries like China and India is increasing people’s disposable income. 2.
As developing countries become more westernized; Swatch could gain a competitive edge in these growing markets with a mixture of its innovative design and artistic approach. 3.
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