Swatch is a manufacturer and distributor of watches. . It also supplies movements and components to third-party watchmakers in Switzerland and around the world. The group has a global presence, which provides it a distinct competitive advantage in the market place. However, intense competition may erode the group's margins and reduce its market share. Strengths | Weaknesses | * Global market presence * Strong brand portfolio * Extensive product offering | * Unfunded employee post-retirement benefits | Opportunities | Threats | * Strategic acquisitions and partnerships * Emerging luxury products market in China | * Intense competition * Exchange rate risk |
SWOT analysis details
Strengths
Global market presence
Swatch has a global presence through its distribution network spread across Europe, Americas, Oceania, Far East, Middle East and Africa. The group has presence in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, The Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, the UK and Ireland. Swatch also has its operations in Brazil, Canada, Mexico, Panama, the US, Australia, China, Hong Kong, India, Japan, Macau, Malaysia, Singapore, South Korea, Taiwan, Thailand, UAE and South Africa. Furthermore, it also has a major position in the production and supply of watches, movements and components with 156 production centers.
The group has maintained its leadership position during FY2011 in most of the segments through its product launches, as well as investments in renovation and new store openings, thus expanding and improving its worldwide network. Strong market presence provides the group a distinct competitive advantage in the market place and increases its sales.
Strong brand portfolio
Swatch is the world's largest manufacturer and distributor of watches. It owns major watch brands such as Breguet, Glashutte-Original,