Resource: The Birth of the Swatch By Youngme Moon
Harvard Case Study: The Birth of Swatch
Brief Description:In 1993, the Swatch is the bestselling watch in history. The case reviews the history of the watch industry and describes the various elements that made the Swatch different from any watch the industry had ever seen.
The case also explores how SMH has managed the Swatch brand in the context of its brand portfolio, which includes nine global watch brands in total.
Objectives: Study fundamental topics in:
• Business and marketing strategy
• Industry and market analysis
• Competitive positioning
• Value creation
Preparation & Analysis
Before this week's class session go online and preparation for the case, research and take down a few notes for yourself on a strategic marketing concept called "breakaway positioning."
Read the Swatch case and prepare for a class discussion of the case by completing the following individual assignment to be turned in through ULearn.
Individual Assignment: Try relating the assigned concept of breakaway positioning, in answering and providing your own rationale for each of the following questions in an overall 2-3 page brief essay format.
1. Why was the Swatch watch so successful? In what ways was the Swatch different from any watch the industry had ever seen?
2. What elements of the original Swatch marketing plan were most critical to the brand's success? Do you agree with the original product strategy? the channel strategy? the promotional strategy? What about the pricing strategy - what does Franco Bosisio mean when he says the Swatch is sold at a "clean price"?
3. Given the huge demand for Swatches (particularly models), did the company make a mistake in not raising the price for some of its styles?
