Burberry

marketing doc

How did Timex succeed the Swiss as world volume leader in the 1950s and 1960s?

Timex toppled the world dominance of the Swiss by streamlining the watch making process therefore also making the process very scaleable. The Swiss had dominated in an era where very little competition existed. This paved the way for the Swiss and their high cost watch producers to remain dominant as consumers really had no alternative to turn to.

Timex introduced watches using a combination of automation, precision tooling, and simpler design then their Swiss rivals. The Timex movements also incorporated new hard alloy bearings rather than expensive jewels used by the Swiss. All this lead to efficient and effective automation of Timex production lines, further lowering already very competitive costs.

The Timex watches were introduced in 1951 and were priced at anywhere between US$6.95-US$7.95. They were disposable and yet also trendy, stylized, and highly durable. Timex provided (for the first….

Opportunities

• E-commerce offers trading opportunities

• The credit crunch switches customers from buying luxury items to low-priced items

Threats

• Counterfeit products

• Intense competition between different companies within a crowed market

Current economic recession and policy of price fixing decrease the...

i. Definition of Industry:

ii. Significant Financial Ratios (use the IO business model to look for above average returns)

iii. Growth:

iv. Porters 5 Forces:

v. External Forces:

Demographic Segment:

Economic segment: The credit crunch might decrease the purchasing power of consumers and though they will still buy the essentials they may be more cautious. They may also spend less on luxury items, something that has a greater profit margin for Swatch.

Sociocultural Segment: