Complete SWOT Analysis of Swatch | IIDE

Updated on: Sep 10, 2021
SWOT Analysis of Swatch | IIDE

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My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

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Swatch is the largest watch-making company that offers watches with contemporary, trendy, and innovative designs. It is one of those brands that culminates in art, sports, and fashion. 

To know the growth of Swatch in the business era, SWOT analysis helps to better understand the reasons behind the company’s continuous success. 

So, before diving into the SWOT analysis of Swatch, let’s dive into the introduction of the company.

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About Swatch

Swatch Logo | SWOT Analysis of Swatch | IIDE

The Swatch Group Ltd. is an International Swiss manufacturer of expensive, sophisticated watches and jewellery. Headquartered in Biel, Switzerland, the company was established by Nicholas G. Hayek. The firm was formed in 1983 when ASUAG and SSIH merged to produce quartz-crystal watches to address the quartz crisis that was threatening the traditional Swiss watchmaking sector.

It is known as the world’s largest watchmaker, with 36,000 employees in 50 countries. The  “second watch” is contracted as Swatch to indicate that the watches were intended as casual, disposable accessories. 

The corporation is actively involved in safeguarding the environment by practising sustainability and conservation during the production of its products. 

Now that we’ve covered the basics in the company, let’s get down to the basic inception of  SWOT analysis in the section below. 


What is SWOT Analysis?

SWOT Analysis helps to build on what the company does well, to address what it is lacking, to minimize risks, and take the greatest possible advantage of chances for success. It can be used as a guide rather than a prescription. 

This method can be used to kick off strategy formulation or more comfortably as a serious strategy tool. The firm can also use it to get an understanding of its competitors, which can give the insights that need to craft a coherent and successful competitive position.

In short, identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and unique ideas. So let’s get started with the SWOT analysis of Swatch. 


SWOT Analysis of Swatch

SWOT analysis is a tool that explores the brand’s strengths, weaknesses which are the internal factors, and also analyses opportunities, and threats which are the external factors of a company.  

The primary goal of this tool is to help organizations gain a comprehensive understanding of all the factors that determine business decisions.

Swatch being a leading brand has a different set of tactics to tackle its complications, and the company uses its prospects to increase its productivity and popularity as well.  So, Let’s take a brief look at the  SWOT analysis of Swatch which is discussed below. 

Swatch Watches | SWOT Analysis of Swatch | IIDE


1. Strengths of Swatch

Strengths are the capabilities and resources that can be dominant to build a sustainable competitive advantage in the business. Productivity and digitization are some of the major advantages of Swatch. Let’s get to know about Swatch’s strengths in detail. 

  • The firm diligently sketches, manufactures and sells finished products globally.
  • Swatch watches have a fascinating identity with their body and vibrant colours. 
  • Product variants of Swatch are innumerable. The design is unique with diverse product lines in the market. 
  • The company has 30,000 workers across 50 countries and operates over 900 boutiques around the world. 
  • The brand has sponsored global events and sports teams that helped it to gain the attention of people.
  • It is known for its thrilling advertising and brand image. Several celebrities and sportspeople are associated with the brand as ambassadors.  

Now, we come to know that Swatch has an intriguing way of marketing its products by its various advantages. So, let’s understand the weaknesses of Swatch. 


2. Weaknesses of Swatch

Weaknesses are the sections that a company lacks in some specific capabilities and skills. It limits the ability of a company to build sustainable competitive supremacy. Imitation products, lack of workforce and technology, cost of production are the frenzy and menacing weaknesses of Swatch. Let’s have a look at those weaknesses below. 

  • Fake imitations and duplicate products affect the brand image and sales of Swatch. 
  • Some series of watches are designed with advanced performance that is too heavy, which is not convenient. 
  • Though Swatch has the power of technology in the backend process, it still has to harness it in the front-end process. 
  • Minimalists may not like the luxurious design and products of Swatch.

So, this concludes the section on the weaknesses of Swatch. Let’s check on the opportunities of Swatch to know about its growth in the market. 


3. Opportunities of Swatch

Opportunities are copious environmental aspects and developments that a company can leverage either to consolidate existing market position or to use for further growth. Swatch focuses on expanding its market and introducing new services to see its products. So, let’s see this section in detail. 

  • The rise in markets in Asia like India and China can be the first target for its distribution expansion strategy. 
  • Growth in the international market can help the organization to diversify the opportunities, as it will be less dependent on the domestic market. 
  • The brand has a chance of using its position as a descendant firm to diversify in different product categories. 
  • The company can make use of e-commerce and other services to sell luxury watches. 
  • Artificial Intelligence is a modern-day advanced technology. Using it in a watch will make the brand even more popular and leading in the business era. 
  • Swatch watches can increase the standardization which focuses the marketing efforts on only the most successful products and reduce the number of offerings in the market. 

Thus, Swatch watches can explore adjacent markets to further growth by extending the features of its products and services. At last, let’s dive into the threats of Swatch. 


Swatch Showroom | SWOT Analysis of Swatch | IIDE


4. Threats of Swatch

Threats are enormously environmental factors and developments that can derail business models. Swatch watches have faced threats especially from the competition and the cost of manufacturing. Following are some of the threats encountered by Swatch. 

  • High manufacturing costs connected with Swiss brands can lead to switching to lower-cost brands
  • Intense competition in the crowded market. Competition from other watch brands with a trendy and young positioning
  • Primarily Swatch watches are dialogues in design but youth prefer digital watches. 
  • High-end smartwatches and wearables increased in the luxury watch market. 

Thus, these are some of the excruciating threats faced by Swatch. Now that we have carefully analyzed the SWOT Analysis of Swatch, let’s conclude the case study in the section below.


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There’s a bigger market for Swatch due to globalization and its well-built brand position. Swatch has been the finest example for succeeding with its marketing strategies. The quality of its product, style and innovation of new things of its timepiece has been the main reason for its success. But as always customers always look for a change with style and innovation of new things there is always a risk from the competitors.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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