Seiko Go Upmarket

* Executive Summary Seiko Watch Corporation and its predecessor had always been innovative in watch technology development and brought many industry firsts to the watch market, and Seiko was very successful before the 1990s. With competitive environment change started in the 1990s, Seiko found it was not in the right segment of the market for growth, this segment is high end watch market. Seiko tried to break into the high end watch segment, but the attempts haven’t been proved successful. Based on detailed analysis of Seiko’s industry environment, competitive arena, and internal issues, conclusion was drawn that Seiko’s past vision, strategy and structure didn’t support its ambition to be an important player in the high end watch market. Countermeasures were then proposed: 1) have a clear and viable vision for future; 2) install a solid strategy of brands differentiation; and 3) match the strategy with organizational structure and resources. * Introduction This case, “SEIKO WATCH CORPORATION: MOVING UPMARKET”, examined Japanese watch maker Seiko’s history, major technology developments, competitive environment, business expansion, and efforts and challenges to uplift brand image to compete in high end market segment. Seiko’s predecessor K. Hattori was established by 22-year-old founder Kintaro Hattori in 1881. The business was started with second-hand clocks sell and repair, and later on retailing and wholesaling of imported clocks. Hattori then established Seikosha (“Seiko” means exquisite and “sha” means house in Japanese) in 1892 to begin to produce wall clocks, launched the first wristwatch in Japan in 1913, and started to use Seiko brand on watches in 1923. Since then, Seiko had been enjoyed rapid growth in domestic market until 1950s when it accounted for 50% of total production in Japan, while Citizen and Orient shared the remaining 50%. Facing