The Birth of the Swatch - HBR Case Study • 1. IE EMBA – S2 – Raffy Karamanian– Oct 2015 The Birth of the Swatch Sales & Marketing Management – IE S2 IE EMBA – S2 – Raffy Karamanian – Oct 2015 • IE EMBA – S2 – Raffy Karamanian– Oct 2015 Success & Differentiation Why was Swatch so successful? Download 2016 Hindi Songs. In what way was the Swatch different then any watch the industry had ever seen?

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Product Quality ProductPrice Luxury Product • Swatch delivered a innovative product • Delivered a new perception to watches • High quality product with low / fixed pricing • Large collection – became fashion item • Large network of distribution • Leveraging on Swiss skills Mass Product • 2,500 Swiss Watchmakers (Luxury) • Considered luxury & financial investment • 1945 – held 90% of world market share • Sold through jewellers & up-scale stores Nicolas Hayek “I decided, we could retreat no longer. We needed at least one profitable, growing, global brand in every segment – including the low end. Angerfist Retaliate Zippy Shell. ” • Low priced watches (mass market) • Considered almost disposable • 1983 – Held 85% market share (units) • Sold through low priced outlets, etc.