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Transcript of SWATCH GROUP
Since 1983 : manufacturer and seller of watches, jewelery, watch movements and components.
World's largest watch producer
Supplies nearly all components for their watches
Swatch group products
low cost watches,
targeting: youth population
Swatch, Flik Flak
Emphasis on quality & reliability
Tissot, Calvin Klein
Niché market to the rich
ultra-low power LCD and modules
low power quartz crystals
Stay in the finished watch industry, while continuously innovating new product lines to the well established brand name.
Reinforce their presence in the
prestige and luxury jewellery
collections under the label
, which has been a great success.
By Ksenia Malakhova & Ville Kemppi
Swatch group products
keep their positions as managers,
keep making right decisions,
good status and stability of positions.
Spend money on their wants and needs
Receive product that meet their requirements (e.g. quality, design, price)
Receiving tax revenues and not harming the economy
Support competition to avoid monopolies
Growth in GDP
Continuous demand on the materials
Long-term relationship with a company
company to earn bigger profit,
increased dividend repayment
interested in future plans of the company and forecasts
know if they are part of long future,
stability in getting a salary,
being provided health insurance and other bonuses,
stability and career growth.
Strong and recognizable brand
Dominant position in watch
manufacturing and technology
(vertically integrated production)
Various brand acquisitions
Krajlic: Portfolio Purchasing model
Low profit margin/unit (basic watches)
High material costs
Low asset turnover ratio
Power source - batteries
Balanced set of performance measures
keep market leadership
Thank you for attention!
Coloured silicone wristband
Glass & plastic
Joint venture with mobile manufacturer
Quality R&D makes horizontal integration to different industries easier
Increasing material costs of metals
Potential decreasing demand of watches