We have previously written a fascinating marketing mix of Titan. This time we are back with another article on the SWOT analysis of Omega.
Omega watches is a company owned by the Swiss Swatch Group which is one of the world’s largest watch companies and famous firms in the industry. The Omega brand, more than 160 years old, was founded in the year 1848 in Switzerland by Louis Brandt. Known for their sporty chronographs, professional dive watches, and co-axial movements, Omega is without a doubt one of the leading Swiss watch companies.
Omega is recognized as a trustworthy and classy brand that can be relied on with watch build and design as criteria. Omega is in seventh place as the world’s most famous Swiss luxury watch brand.
The reason for the success of Omega in the market is its effortless marketing strategies. As the world is moving online, the way marketing is done is changing and if you are interested in learning about the newest – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
In this blog, we will look at the SWOT analysis of Omega but before that let’s look at some of the facts about the company.
About Omega
Omega is a Swiss Luxury watch manufacturer which provides luxury watches, fine jewellery and accessories collections for men and women. Omega’s journey began in a small workshop conceived by founder Louis Brandt in La Chaux de Fonds, Switzerland in 1848.
Thirty years after it was established, he retained his business selling watches to buyers across the globe. The demise of the founder occurred in 1879, his sons stepped in to carry on the legacy and accomplish their father’s vision. In the year of 1885, the brothers released their first mass-produced calibre called the Labrador, and in 1892, they developed the first minute-repeating timepiece.
The consecutive century brought about a new generation of family leadership and new achievements. In 1905, Omega began selling as the official timekeeper for several sporting events in Switzerland. This laid the foundation for the brand’s long-standing work with sports teams, players, and events. Eventually, it led to their association with the Olympic Games in 1932.
| Founder | Louis Brandt |
|---|---|
| Year Founded | 1848 |
| Origin | Switzerland |
| No. of Employees | 1,000+ |
| Company Type | Public |
| Market Cap | N/A |
| Annual Revenue | $ 1.758 Billion (2020) |
| Net Income/ Profit | N/A |
Products of Omega
Omega has been in the watch manufacturing industry for more than a century and deals in
- Luxury Watches
- Artificial Jewellery
Competitors of Omega
- Rolex
- Patek Philippe
- Audemars Piguet
- A.Lange & Söhne
- Blancpain
Now that we have looked at the fundamentals and the core business model of Omega, let us dive right into the SWOT analysis of Omega.
SWOT Analysis of Omega
A SWOT analysis determines a company’s strengths, weaknesses, opportunities, and threats. It is a tried-and-true management paradigm that allows Omega to compare its business and performance to competitors and the industry as a whole.
To better understand the SWOT analysis of Omega, refer to the infographic below:
Now first let’s begin with the strengths of the company from the SWOT analysis of Omega.
Strengths of Omega
Strengths are a business’s capabilities that give them a competitive advantage in capturing more market share, alluring more customers and profit maximisation. Following are Omega’s strengths:
- Quality Products: One of the key strengths ever since its inception is that it has a brand image of high-quality products and watches with long-lasting durability.
- Sports Sponsor: Omega watches has made it to the high brand association title and has partnered with several global events such as Tennis and Golf tournaments which have created a world-class status perception.
- World-Class Technology: The Swiss brand leverages state of the art technology known as co-axial technology. Because of the technology being used in the watches, Omega received the award of world-class watches recognition for using the number No.1 technology in the industry.
- Brand Ambassadors: Omega has associations with top celebrities such as James Bond to enhance engagement and also puts forwards its authentication.
- Established Parent Brand: The Swiss watch company is a part of the Swatch group which is again a globally recognized and established brand.
- Notable Inventions & Patents: Omega is famous for its notable inventions from 1892 to 2015, and those inventions are patented so that competitors cannot copy the design and technology of the same.
- Strong Advertisement: Omega has a great marketing strategy. It has used well-known stardom celebrities for the advertisement of watches which increased the sale of the watches.
Weaknesses of Omega
Weaknesses are the negatives or the areas that the business needs to improve on or eradicate to survive in the industry.
- Inadequate Distinction: Although Omega is a global brand, the perception and positioning set by them are not yet clear on the maps.
- Market Share: The market share of the swiss watch is quite less relative to the competitors in the market. Brands like Rado, Tissot and Rolex are ahead on the index in terms of market share.
- Higher Product Prices: The cost of manufacturing is quite high which makes price competition adversity for the company with other brands in the industry. Since the products are manufactured in Switzerland where the cost of labour is high thus this translates to a higher price.
Opportunities for Omega
Opportunities are chances present for an organization which the business can use with the current skills and resources and technology they have. This will help the business grow and expand either by market development or by diversifying their business.
- International Expansion: The company has a good opportunity to devise strategies to expand to international markets. In a certain sense the threat of not having a clear perception in the map, they can use that to capitalize in a new market where Omega watches are not available.
- Move Manufacturing Operations: Labour in Switzerland is quite expensive thus the brand has a chance to shift the manufacturing operations to a country where labour costs are cheap and which will help in reducing the final price and getting a competitive advantage on price.
- Innovation & Unique Product Line: Omega can design watches as per customer need because watches have become statement pieces in fashion. They can come up with different watches for different occasions. The brand can launch a new product line of watches to build its customer base by targeting a new market segment.
Threats to Omega
Threats are areas that are going to negatively affect the business and limit its growth opportunities either presently or in the future. Competition and an increasing number of firms in the industry is a threat to a business as it directly diminishes the customer base and revenue.
- Depleting Economies: Omega is a premium brand aimed at the consumer segment with higher disposable income. Currently, the economies are weakening and disposable income is decreasing, thus Omega should adapt to the changing economic circumstances.
- Competitors: There are several other watch brands in the market such as Citizen, Titan, Rolex, Tag Heuer etc. which can be a threat to the company. Chinese companies are selling watches at a lesser price so it can create a threat in the international market for the company.
- Fake Imitation: Product replicas by fake designers are tarnishing the image of the Omega as the watches are being sold at a very less price. It may cause a serious threat to Omega.
- Environmental Rating: Omega has been given a low environmental rating along with 7 other brands by WWF for concerns over the lack of transparency in manufacturing activities causing an impact on the environment and climate change.
This ends our in-depth SWOT analysis of Omega. Let us conclude our learning below.
To Conclude
Omega is a well-known brand in the market and has survived for centuries and has a lot of potentials to further grow, make a global presence and create a positioning they envision. It has had strong growth but its competitors are surpassing the company in terms of research and development efforts.
Other than that, Omega should think about growing its marketing campaigns and environmental awareness on social media using digital marketing strategies.
Because the importance of digital marketing has grown exponentially over the past few decades. Businesses are very careful about their marketing, advertising, and social media presence. If you are a Marketing enthusiast the most important thing right now is to understand digital marketing. Check out IIDE’s 3 Month Advanced Online Digital Marketing Course if you want to learn more and improve your skills.
We hope this blog on the SWOT analysis of Omega has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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