100%(3)3 out of 3 people found this document helpful
This preview shows page 1 - 5 out of 13 pages.
THE BIRTH OF THE SWATCH
INTRODUCTION Prior to the 1950’s•Swiss dominated the Swatch industry •Watches were made with jewels, considered as high priced financial investements, as with fine heirloomsFrom 1951•Low cost competition emerged : US time introduced the disposable watches bearing the Timex brand name •The introduction of Quartz Technology from 1970 (more sophiscated functionality, significantly low cost, Japanese manufacturers )Late 1970’s: Dilemma Switch watch makers had refused to embrace the quartz technology and insisted on making high end mechanical watches. They could not complete with other watch making companies in cost of production. Continious decline of market share Resulted in the free fall f the Switch watch industry
Why was Swatch so sucessful ?In what way was the Swatch different then any watch the industry had ever seen ?
Success of Watch Unit sales increased rapidly and reached 31,5 million by 1993, generating more than SFr2000 million accumulated profit In 1993, SMH’s production of watchesn grew to 87 million units, giving SMH a world market share of 9%The entire Swiss watch industry benefited and commanded 55% of the world total value in 1993It’s becoming a trend for people to wear Swatch