Swot Analysis Of Swatch

1. Introduction

Swatch is a Swiss brand of the most successful, competitive and largest wristwatch maker in the world of its parent company, The Swatch Group which currently owns 19 famous watch brands, such as Omega, Tissot and Breguet (Pattati, 2014). Due to its high quality and innovative design, Swatch watches are not only just casual watches but also a cult collector’s item in the world. Additionally, they also have series of watches for every season, every special occasion and every event. However, due to intensive competition with other companies coupled with changing tastes and culture of the target market, most of wristwatch companies have been hit hard including the parent company The Swatch Group. The needs and desires of individual customers vary greatly and continually, which also means customers are still seeking for something new that will motivate them to continue to support the products. Swatch was born and proved to be a radical innovation of meaning that created market success – due to the realization that people cared more about self-expression than technical precision of its rivals, Seiko, Casio and Timex (Mudambi, 2005). While competitors were closely observing user needs and existing meanings, Swatch created new ones (Exhibit 1). There are two primary reasons for the Swatch success: one is the effective marketing strategy which the company uses by satisfying its target market well; another is high quality and differentiated designs.

2. History