Case study 1
A case study on the luxury watch market
The following case study is largely focused upon Prestige luxury watches but in order to give a context to the activities of this business also presents some background information on the luxury watch market and some information about a number of other brands operating in this market. A number of positioning matrices are included in the Appendix to aid understanding of the competitive market.
1.
The luxury watch market
Switzerland dominates the global watch market through a near monopoly on luxury watches. A long history, dedicated university and apprenticeship programs together with related and supporting industries, such as fashion and precision engineering, have created a rich environment of integrated and independent
ǁĂƚĐŚŵĂŬĞƌƐŝŶ^ǁŝƚnjĞƌůĂŶĚ͛Ɛ:ƵƌĂƌĞŐŝŽŶ͘dŚĞ^ǁŝƐƐDĂĚĞůĂďĞů͕ƐƵƉƉŽƌƚĞĚďLJƚŚĞŐŽǀĞƌŶŵĞŶƚĂŶĚƌĞƐĞĂƌĐŚ
focused institutions for collaboration (IFCs), has been of enormous benefit in marketing Swiss watches abroad, especially in Asia, which is the single biggest market. There is a danger however that the value of the Swiss
Made brand motivates complacency and that the Swatch Group holds a near monopoly on part of the value chain (components). Wristwatches fall broadly into two categories: mechanical and quartz. Mechanical watches rely on an
ƵŶǁŝŶĚŝŶŐƐƉƌŝŶŐĂŶĚŵĞĐŚĂŶŝĐĂů͞ŵŽǀĞŵĞŶƚƐ͟;ĐŽŵƉŽŶĞŶƚƐͿƚŽƉĂĐĞŚĂŶĚƐĂĐĐƵƌĂƚĞůLJĂƌŽƵŶĚĂĚŝĂů͘YƵĂƌƚnj
watches rely on battery power and a quartz crystal oscillator to keep time accurately. Today quartz watches are more widespread because they are cheaper to produce and are more accurate. Mechanical watches mostly occupy the luxury segment, but many luxury quartz
The following case study is largely focused upon Prestige luxury watches but in order to give a context to the activities of this business also presents some background information on the luxury watch market and some information about a number of other brands operating in this market. A number of positioning matrices are included in the Appendix to aid understanding of the competitive market.
1.
The luxury watch market
Switzerland dominates the global watch market through a near monopoly on luxury watches. A long history, dedicated university and apprenticeship programs together with related and supporting industries, such as fashion and precision engineering, have created a rich environment of integrated and independent
ǁĂƚĐŚŵĂŬĞƌƐŝŶ^ǁŝƚnjĞƌůĂŶĚ͛Ɛ:ƵƌĂƌĞŐŝŽŶ͘dŚĞ^ǁŝƐƐDĂĚĞůĂďĞů͕ƐƵƉƉŽƌƚĞĚďLJƚŚĞŐŽǀĞƌŶŵĞŶƚĂŶĚƌĞƐĞĂƌĐŚ
focused institutions for collaboration (IFCs), has been of enormous benefit in marketing Swiss watches abroad, especially in Asia, which is the single biggest market. There is a danger however that the value of the Swiss
Made brand motivates complacency and that the Swatch Group holds a near monopoly on part of the value chain (components). Wristwatches fall broadly into two categories: mechanical and quartz. Mechanical watches rely on an
ƵŶǁŝŶĚŝŶŐƐƉƌŝŶŐĂŶĚŵĞĐŚĂŶŝĐĂů͞ŵŽǀĞŵĞŶƚƐ͟;ĐŽŵƉŽŶĞŶƚƐͿƚŽƉĂĐĞŚĂŶĚƐĂĐĐƵƌĂƚĞůLJĂƌŽƵŶĚĂĚŝĂů͘YƵĂƌƚnj
watches rely on battery power and a quartz crystal oscillator to keep time accurately. Today quartz watches are more widespread because they are cheaper to produce and are more accurate. Mechanical watches mostly occupy the luxury segment, but many luxury quartz