Case Analysis Worksheet

1. Recognize potential issues. List terms or phrases that seem to be

important for understanding what the case is about.
 The Swiss dominated the watch industry, in large part because of
their centuries-long history of jewelry-making expertise.
Watchmaking was a source of national pride, and the “Made in
Switzerland” label was a global seal of quality, status, and prestige.
 In 1951, a company called U.S. Time introduced a line of
disposable watches bearing the Timex brand name. Timex watches
were very simply designed and used cheap exterior materials that
gave the devices a strictly functional appearance. By the end of the
1950s, one out of every three watches bought in the United States
was a Timex, and by 1970, Timex was selling more watches than
any other manufacturer in the world.
 Quartz Technology changed the nature of competition in the watch
industry, Unlike mechanical movements, quartz movements used
an integrated circuit made up of numerous electronic components,
resulting in a watch that was comparable in accuracy to Swiss-
made mechanical watches

2. Brainstorm for connections. Briefly discuss the following with the group.

What is this case about?

The case study is particular in that it does not clearly present a particular
problem that the brand Swatch might be having. Indeed, at the time the case
study was written, the brand continued to be highly successful and produce
significant revenues for the company. The problem, however, can be anticipated
in the Looking Forward chapter. The most important problem and challenge that
the company is facing is related to the fact that it needs to find the right
alternative solutions for the moment when the market demand will cool off and
the customers will have grown over the initial impact that the innovative concept
that Swatch brought about would cool down. Indeed, initially, people were so
interested in Swatch because the brand had managed to put together in the
same product innovation and technology, all at a more than reasonable price.

What are its major themes?

 The arrival of Low Cost and simply designed Timex watches by U.S.
Time
 The Introduction of Quartz Technology in the watch industry

Waterman, M. A. and Stanley, E. D. 2003. ICBL Case Analysis Worksheet.

  The Swiss Watch Industry in Free Fall- Swiss watch industry was
dominated by ASUAG and SSIH.
 The success of the Swatch brand exceeded all of the company’s
expectations.

Keep track of major issues and questions that arise with the Know/Need To Know chart.

What do we already know? What do we still need to know?

How has the watch category changed in the What is the current situation of the
last two decades? brand?

Why was Swatch so successful? In what way How will they prevent their brand from
was the Swatch different than any watch the financial losses?
industry had ever seen?

Why was the quartz technology introduced? What are the future plans of the Swatch?

How does Swatch control their messaging? Will Swatch be able to compete
upcoming watch brand?

Identify one question or issue from the “need to know” list that your group
wants to explore.

3. Obtain additional references or resources to help answer or explore

questions. These may include print resources, informational articles, data
sets, results of simulations, maps, interviews, etc.

List four different resources you think would be useful:

 Swatch Group I (UHR) and Swatch Group N (UHR N) Financial Dashboard
https://www.swatchgroup.com/en/investors-space/financial-dashboard
 Swatch Group - Strategy and Uncertainty in the 21st Century Global Clock
Industry
https://www.researchgate.net/publication/315706055_Swatch_Group_-
_Strategy_and_Uncertainty_in_the_21st_Century_Global_Clock_Industry
 Swatch CEO: Have 60% of Swiss watch market in China(WED, JUL 17 20195:15
AM EDT)
https://www.cnbc.com/video/2019/07/17/swatch-ceo-have-60percent-of-
swiss-watch-market-in-china.html
 How Nicolas Hayek Saved the Swiss Watch Industry
https://www.youtube.com/watch?v=KAMyyCpZloo

Waterman, M. A. and Stanley, E. D. 2003. ICBL Case Analysis Worksheet.

 4. Design and conduct scientific investigations relevant to the question.

Swatch carried the ‘Made in Switzerland’ tag, which made it stand out from
remaining low-priced global brands. Majority of consumers in United States and
Europe preferred Swiss watches particularly because of their high quality so
when Swatch entered the low-priced segment, it immediately caught the eye of
all consumers. Secondly, the overall strategy of Swatch was the main reason
behind its success. The idea of vertical integration, reducing the number of parts,
decreasing direct labor, identifying right suppliers, selecting appropriate
distribution network; all contributed towards making Swatch a different product
then what the industry had ever seen.

5. Produce materials that support understanding of the conclusions.

The Swatch case demonstrates that, without knowledge, we cannot design; but,
with only knowledge, we can only reproduce. Innovation requires knowledge and
creativity. The Swatch design process adhered to the concept-knowledge) theory
of design. There was rigorous and continuous interaction between concepts and
knowledge with engineers participating in conceptual issues and creative people
involved with engineering matters. The engineers are also on the concept side
and the creative people on the knowledge side of engineering. No space is off
limits for innovation, including those areas occupied for long periods by leading
players and proven solutions.

Waterman, M. A. and Stanley, E. D. 2003. ICBL Case Analysis Worksheet.