SITUATION ANALYSIS

Swarovski, a crystal-based company with old roots, made its entry into production fields initially with multifaceted
crystal-based products, only to shift most of its attention to jewelry items, of types luxury and costume. Combined with
its strong brand name built over the years and consolidated physical retail stores, Swarovski climbed its way to the
middle echelon of jewelry world. Amidst the rising expectations that the company’s jewelry sector will witness further
growth, it fell victim to the banes of the COVID pandemic. Consequently, its once steadily-increasing-growth-rate
plummeted due to physical store closures, which only made it apparent how weak its online marketing stance was. This,
coupled with the fact that the previous CEOs of the company had their fair share of problems in conforming to the
company’s true interests like vision compliance, charity activities only weighs as a burden on the shoulders of the new
CEO Alexis Nasard and it is upon him to veer the company’s direction to previous golden times of growth.

SWOT ANALYSIS
STRENGTHS WEAKNESSES

❖ Strong Brand Identity ❖ Dependency on Retail Stores

❖ Diverse product portfolio and innovation ❖ Internal Leadership Conflicts

❖ Significant global presence

OPPORTUNITIES THREATS

❖ Digitalization and E-commerce ❖ Competitive Pressure from both sides

❖ Geographical Expansions ❖ Internal resistance to change

❖ Mergers and Acquisitions of top competitors

PROBLEM IDENTIFICATION
Core Issues
1. Declining Sales and market share
2. Over Reliance on Physical store
3. Weak digital Infrastructure
Symptoms
1. Less percentage of sales from online stores compared to
competitors.
2. Store closures and challenges in maintaining profitability as a result.
3. Double digit growth decline since 2020 mainly due to under-utilized
digital platform

KEY ISSUE
The company’s inability to effectively cope with the changing market dynamics, specifically in response to blooming
competition and the digitalization of the retail landscape.
JUSTIFICATION OF KEY ISSUE
Swarovski faces challenges including heightened competition, digitalization struggles exacerbated by COVID-19, internal
leadership disputes, declining sales, and resistance to change. The case illustrates Swarovski's fight to maintain market
position, declining profitability, and internal conflicts. Strategic actions are necessary to bolster digital capabilities,
optimize retail strategies, and enhance organizational alignment for sustained competitiveness and long-term success.

EVALUATION OF ALTERNATIVES
Alternatives Time Market Distribution Production Sales Investment
capture facility
efficiency diversify trajectory required

Launching innovative digital High High Low Low High Moderate

marketing campaigns.

Developing sustainable products Low Low Moderate High High HIgh

and social responsibilities.

Penetrating blue ocean market High High Moderate High High High

Diversifying into various fields Low High High High Moderat High
e

RECOMMENDATION
The suggestions for Swarovski include concentrating on four important areas. Performing in-depth research,
providing content that is customized to the audience, making use of data analytics, and working with professionals.
Further, incorporating environmentally friendly techniques into product creation,sharing CSR initiatives, involving
stakeholders, working with environmental organizations are all important aspects of sustainability and social
responsibility. Finally, in order to successfully reach unexplored niches, blue ocean markets require lots of market
research, creative product creation, customized marketing, and strategic collaborations. To successfully join new
industries, diversification activities should also include investing in research and development, evaluating core
strengths, finding possibilities that complement brand identity, and using current partnerships.

ACTION PLAN
The roles of Operational management, finance, sales and distribution, branding and advertising are given below:

Operational management Digitalization Sales & distribution Branding and advertising

Strategic planning with
company objectives,
efficient resource allocation
to support initiatives,
continuous improvement in
processes and quality
control to maintain brand
excellence and customer
Development of digital
Strategy, investment in
technology, data-driven
decision making,
utilization of
collaboration and
communication tools to
facilitate remote work
Sales and distribution
strategy will involve omni-
channel integration, retail
expansion, e-commerce
enhancement, wholesale
partnerships, CRM
implementation, sales
training, inventory
The advertising and
branding division plan for
Swarovski involves
establishing performance
metrics, identifying target
audiences, defining brand
positioning, using
influencer marketing and
 satisfaction. and enhance teamwork. optimization, promotions, executing digital
and international expansion. marketing campaigns.

JUSTIFICATION FOR RECOMMENDATION

Each of the proposed strategies pinpoints the exact anomalies of the case and removes the shortcomings. The
operational management tasks help with quality maintenance of product, which ensures more diversified and
substantial products. Digitalization tasks would help in consolidating the digital infrastructure of the company. Sales
and distribution tasks would help in uniform distribution of products, which in turn would suffice the mass-demands of
the growing customer base. Finally, the branding and advertising tasks would help address the weak online presence of
the company and cater the company’s overall value to the required customers.