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Essay / Research Paper Abstract
This 7-page paper focuses on a case study in competitive advantage as it pertains to Swatch, the company representing several Swiss watchmakers. Questions answered include how Swatch can cut costs and differentiate itself from the competition. Bibliography lists 3 sources.
Page Count:
7 pages (~225 words per page)
File: D0_MTswatch.rtf
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Unformatted sample text from the term paper:
The main thrust of the paper details Swatch, a collection of Swiss watchmakers that banded together in order to leverage market opportunities and provide stronger brand awareness. During the 1980s,
Swatch (a combination of "Swiss" and "watch") literally revolutionized and revitalized the Swiss watchmaking industry, which was increasingly under fire by competition from Japan and the United States. However, in
the 1990s, Swatch was again in trouble, thanks, in part, to some poor decision moves (such as agreeing to help in the manufacture of a "smart car," which yielded nothing),
increasing competition, rising labor costs and lower priced products from the competition. The following questions will address some of the issues faced
by Hayek, who was Swatchs founder and CEO. 1. In one paragraph state the problem(s)/issue(s) of the case. In this case,
the challenges faced by Swatch are two-fold. First, there was the dilemma of cutting manufacturing costs by sending production overseas to Third World Countries that were known primarily for low-cost
manufacturing alternatives. Second, another management trend facing Swatch involved a switch in strategic direction. Instead of being "all watches to all people," Hayek faced the difficult choice of moving his
companies into more differentiated, more narrow niche markets. Basically, in this latter regard, globalization was creating problems of not enough product differential from the competition.
In short, Swatch, which was formulated as a solution to marketing problems during the 1970s, has pretty much outlived its current company structure and needs to reposition
itself competitively in order to compete on a global level. 2. Critically analyze the issues without parroting the case. What Swatch
...