Rolex And Swatch Case Study

A point that is needed to be mentioned is the logistic processes that take part in this industry. But since this is a general analysis of the entire industry it would mean going off topic talking of those processes because they are different for each producer and the way the industry is classified. A right explanation would be comparing this 2 brands, Rolex and Swatch. As mentioned above these 2 brands come from different parts of the industry. Rolex is part of the high end market and Swatch is more related to the middle class section. They have different demand and sales numbers which reflect on the number of units produced and the way they are delivered to the retailers. Since Swatch has a high sales number due to its relative price compared

Regarding the number of units produced and sold it is obvious that companies like Swatch and Rolex need to use different systems in order to manage the distribution of their products.
With the help of this comparison, a general overview can be done and a slightly better understanding ca be reached regarding the models of production and logistics used by different companies that are part of the Swiss watch making industry.
Important innovations during history and nowadays During the history of Swiss watch making, the industry has experienced many innovations that somehow have revolutionized it in their own way. Some of them turned a small traditional craftsmanship, into a real industry that has millions in revenue every year .
It starts in 1850 , when Edward Howard presented the precision machining , this was a major turning point because it made the wrist watch into a precision accessory. This revelation helped the wrist watch build up a reputation and made it more appealing to the costumers.
It took 70 years for the next turning point to happen. In 1920 Rolex introduced the water resisting watch and after 11 years they introduced the self winding. Both these 2 innovations played a major role at settling the industry by making it a symbol of precision and

The Japanese introduced the quartz movement and the digital displays . These innovations made the Japanese wrist watches greatly precise and a major threat to the Swiss ones ,which were renowned for being as precise as it get . The Swiss tried to mach the grade of precision that the Japanese had by perfecting the old ways of production . They managed to mach that and in some case to surpass it but the costs of this were too high so many of the Swiss watch makers implemented the new technology. They didn’t just copied it, they created their own but based on the same principal and tried to perfect that in their own way. TISSOT , for example ,introduced a watch that could measure the temperature and pressure using just the internal sensors and the electronics provided by the battery.