The Swatch trade name is facing challenges in gaining publicity due to a significant disconnect in the ticker market. This has resulted in lower asset turnover compared to its competitor's parent company, negatively impacting financial profits. Additionally, Swatch Group's employee productivity is relatively weak with a value of $0.2 million, whereas Seiko, its competitor, has a higher productivity value of $0.3 million.
The production costs at Swatch's central offices are excessively high, which is a significant disadvantage for the company. However, unlike its competitors who choose to manufacture in low-priced countries, Swatch remains committed to its Swiss base. Despite this commitment, producing watches in one of the most expensive countries in the world poses challenges.
There are opportunities for Swatch to capitalize on the improved economic status in developing countries like China and India. The rising disposable income
...of people in these countries can potentially increase demand for Swatch products. Additionally, as developing countries become more westernized, Swatch's innovative design and artistic approach could give it a competitive edge in these growing markets. Furthermore, with consumers shifting from luxury to affordable products due to the recent economic downturn, there is an opportunity for Swatch to cater to this changing preference. The innovative changes taking place in e-commerce and retail also provide direct marketing opportunities for Swatch.
However, there are threats that need consideration. One major concern is the counterfeit watch market which not only results in financial losses but also damages brand reputation. Studies show that this imitation watch industry causes annual losses of over $1 billion. Another threat lies within Swatch's customer base - urban trendsetters who prefer changes and can be unpredictable. If Swatch fails t
produce innovative fashion designs, it could experience significant sales loss among its target demographic.
Additionally, Europe currently represents the largest market for Swatch watches; however, due to economic recession and stagnant monetary value development, the position of Swatch watches in this market is being threatenedSwatch watches primarily use plastic and metal as their main materials.
Recent price hikes in crude oil and metals have resulted in increased production costs and a decline in net income.
There is overlap with Swatch.
- Money essays
- Financial Accounting essays
- Market Segmentation essays
- Supply And Demand essays
- Purchasing essays
- Forecasting essays
- Legacy essays
- Bank essays
- Corporate Finance essays
- Financial News essays
- Financial Ratios essays
- Financial Services essays
- Free Market essays
- Shareholder essays
- Personal finance essays
- Equity essays
- Financial Crisis essays
- Banking essays
- Credit Card essays
- Currency essays
- Debt essays
- Gold essays
- Loan essays
- Enron Scandal essays
- Foreign Exchange Market essays
- Investment essays
- Venture Capital essays
- Stock Market essays
- Retirement essays
- Donation essays
- Net Present Value essays
- Income Statement essays
- Commercial Bank essays
- Debit Card essays
- Deposit Account essays
- Subprime Lending essays
- Perfect Competition essays
- Underwriting essays
- Synergy essays
- Valuation essays
- Investing essays
- Asset essays
- Depreciation essays
- Discounted Cash Flow essays
- Foreign Direct Investment essays
- Funds essays
- Internal Rate Of Return essays
- Revenue essays
- Day Trading essays
- Futures Trading essays
