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Provide a 6 pages analysis while answering the following question: Swatch Company Analysis. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required.
Provide a 6 pages analysis while answering the following question: Swatch Company Analysis. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Porter’s five forces framework shows us that there are different strategies adopted by the players in the global watch industry. It seems that the first barrier is the market entry mechanism is the cost that is incurred to make a name become accepted and appreciated in the watch world (FHS, 2007). For example, an established design house can certainly launch its own watch brand under the name of the designer (TATA, 2004). Clearly, Giorgio Armani and Versace would have no problems in getting their watches accepted as fashion accessories but to break into the market as a completely new company would be a significant undertaking in terms of marketing costs and in creating brand recognition (St. John, 2002).
In fact, this is the only barrier that prevents the entry of new companies and allows the current players to dominate the market with the power of supply and innovation in the field. Clearly, as increasing sales show the trends, there is no real substitute for a watch and even though individuals may choose not to wear a watch and use a phone to tell time there will be those who consider a watch to be essential (Ramirez, 2006). Marketing certainly helps in selling watches especially when a watch needs to be given a particular image even if replicas can be made the quality and the manufacturing of the original can not be realized in the cheap copies which are in the market (FHS, 2007).
Buyer power in the fashion sector of the market is quite significant since what is fashionable today may not be as fashionable tomorrow without innovation or staying power with new trends (St. John, 2002). However, brand loyalty can also be established with good quality products and products which have a perception of permanence in some terms. For example, a company like Rolex or any other high-end brand would try to give a generational image where a watch may be passed as an heirloom from one generation to the next (Shearer, 2002).