Swatch Case Study-Competitive Analysis

COMPETITIVE ANALYSIS

In to analyse the competitiveness of Swatch , Porter 's five forces model will be considered . Through this moidel , the analysis of the industry sector of Swatch Group will be discussed

Buyer Power (High

Swatch Group are said to face the face the threat of buyers which have a tendecy to shift their brand loyalty to other companies that sell similar products . Swatch have many rival companies and if the management will not consider strategic approach to management , specifically with their brands , they will lose valuable clients

Supplier Power

(High

Swatch Group may face threats from suppliers since suppliers have the power to manipulate the price of the raw materials for the operations Since there are only few suppliers for this kind of products , offered by Swatch , it shows that suppliers can basically have the power to choose the price

Barriers to Entry ( Very High

The changing behavior of the consumer and also the people 's awareness to quality of the product enables barriers to entry for substitute products or new company . This is due to the context that new company and products will have the power survive in the competitive market . Although Swatch Group has a strong brand , there are some tendencies that new existing companies offering similar products will make it to the retail market

Rivalry (HIGH

The environment in the this kind of industry can be considered as high It can be said that there are various aspects which keep watch and other products of...