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Essay / Research Paper Abstract
This 5 page paper examines how and why Swatch was so successful following its’ launch in 1983 and assesses the continued success from a marketing perspective. The paper is based on the Harvard Business School case ‘The Birth of Swatch’. The bibliography cites 2 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEswatch2.rtf
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Unformatted sample text from the term paper:
company around from one withy looses to one with a very healthy profit only a few years later. By looking at the way the company marketed Swatch it is
possible to see why and how the brand has become so successful. The success was needed and it may be argued that the concept of the product and the
way it was promoted were well suited to the environment in which it was launched. The concept of the product was to have a high quality watch produced cheaply, that
was fashionable and turned the purchase of a low cost watch into an emotional purchase. The first important element of this was the ability to deliver on these core characteristics,
of quality at a low cost with a unique style. The operations has to support the product, with the development of a highly integrated vertical value chain, SMH undertook
all the assembly themselves and developed a new production line to so this. They were also brave enough to break the model that had been followed by many Swiss watch
makers who had been simply relying on the reputation for quality and were hoping that quartz watches would be a fad only and were continuing to make high cost mechanical
movement watches. The decision to use the reputation of quality and move into a market that Swiss watch makers had not competed in was not generally seen as potentially
lucrative, the bankers were nervous and the trial markets in the US, which were not supported by marketing, did not show promise, but the planned launch went ahead anyway. The
reason for the success has to be seen as the way the product was brought to the market with the aggressive marketing. Michael Porter has looked at the way
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