But Swatch had always committed to its Swiss home base. Swatch’s competitors locate manufacturing activities in low-cost countries t. 4.The production costs of company headquarters are too high. The productivity of Swatch Group is $0.2Million Compared to $0.3 Million of its competitor’s Seiko. The fact that the company was not only selling a watch, but an important part of people’s self image, in my opinion, is the main reason for which the Swatch succeeded. He decided that the Swatch would have a unique message, one unlike that of any other watch brand in the market. Heyek wanted to give a whole new meaning to buying and wearing a watch, create value out of it. Heyek had an important role in the success of Swatch. 3.Europe is currently the biggest market for Swatch watches, however due to the economic recession and price fixation its position is threatened. So if swatch fails to produce innovate style it can make huge loss on its sales. 2.Swatch customers are urban trendsetters who prefer changes and are unpredictable. However, certain product lines were more successful then others. They could provide hi-tech watches that functioned as ski passes, fashion watches such as the Swatch, or an exquisite diamond studded precious metal watch – Swatch provided products at all extremes. Competitive and Product Mix Issues and Potential Resolutions The Swatch group as a whole had an unparalleled ability to provide consumers with a wide range of products in all market segments.
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