Published by MBA Skool Team, Last Updated: April 26, 2020
SWOT analysis of Swatch analyses the brand by its strengths, weaknesses, opportunities & threats. In Swatch SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Swatch to benchmark its business & performance as compared to the competitors. Swatch is one of the leading brands in the lifestyle and retail sector.
The article below lists the Swatch SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Swatch SWOT Analysis:
For Swatch, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Swatch looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Swatch :
1. Swatch watches have a distinct identity with its body and vibrant colours
2. Swatch has several designs and diverse product lines in the type of watches offered
3. Part of the Swatch group that has 30,000 employees across 50 countries operating 900 boutiques around the world
4. Associated with sporting competitions has strengthened its brand image
5. Swatch is a top-of-the-mind popular brand across the world
6. Excellent advertising and brand image of the watch company
7. Swatch has been associated with several celebrities as brand ambassadors
8. Sponsorship of global events, sports teams etc have helped the brand connect well with customers
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Swatch SWOT Analysis:
1. Fake imitations and replicas affect the brand image and sales of Swatch
2. Intense competition means limited market share of the brand
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Swatch SWOT Analysis:
1. Emerging markets in Asia like India and China can be the primary targets for its distribution expansion strategy
2. Swatch can use its positioning as a young brand to diversify in different product categories
3. The company can utilise ecommerce and other services to sell luxury watches
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Swatch are as mentioned:
1. High manufacturing cost associated with Swiss brands can lead to switching to lower cost brands
2. Competition from other youth watch brands with a trendy and youthful positioning
There are several brands in the market which are competing for the same set of customers. Below are the top 16 competitors of Swatch:
Swatch offers watches with contemporary, trendy and youthful innovative designs
High quality watches
Upper-middle class youth
Swatch is a watch brand that is the culmination of Art, Sports and fashion
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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