Innovation Management at Swatch

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Differentiation through Innovation:
A Timeless Case Study of Swatch

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Innovation Management at Swatch

  1. 1. DIFFERENTIATION THROUGHINNOVATION:A TIMELESS CASE STUDY OF SWATCH Lyla Lin ylin013@e.ntu.edu.sg
  2. 2. Outline•  Overview of company•  Vision, mission & culture of Swatch•  Drivers of innovation at Swatch•  Innovation management at Swatch •  Structural capital •  Human capital •  Relational capital•  Recap & Road ahead
  3. 3. Swatch vs. The Swatch Group•  Swatch•  The Swatch Group - the worlds largest watchmaker
  4. 4. Overview of Swatch•  Born in the early 80’s and proved to be a radical innovation of meaning that created market success – due to the realization that people cared more about self-expression than technical precision (Seiko and Casio)•  Reputed for diversified offerings•  5 families under the brand Originals Irony Skin Beat Bijoux
  5. 5. Vision, mission and culture of Swatch •  To become the creative & innovative Mission leading brand in global market and establish strong brand image in the mind of consumers•  To add beauty, Vision sensuality, emotionality to high-tech watches and to make YOU happy with them Culture •  Emotionalism & realism •  Humanism & combativity in the face of formidable competitors
  6. 6. Drivers of innovation at Swatch•  Drivers from inside •  Self positioning •  Brand •  Product •  Vision, mission and culture•  Drivers from outside •  Nature of fashion industry •  Short lifecycles •  High volatility •  Attention to details •  Competition •  Customers
  7. 7. Innovation management at Swatch Structural capital Innovation management Relational Human capital capital
  8. 8. Innovation in structural capital managementOrganizational capital- Brand image: stylish, trendy, joyful, cool, fun, provocative- Team based, non-bureaucratic hierarchyProcess capital- Fundamental change to watch design- Marketing strategies (product + price + place + promotion)Innovation capital- Patents of watches, watch cases, support for holding watches, display stands, sales counters, etc. Swatch production: http://www.youtube.com/watch? v=ij0N1E_5dwk
  9. 9. Innovation in human capital management•  Highly integrated with business strategy•  Training and development •  Watchmaking schools
  10. 10. Innovation in relational capital management•  No/ little market research for new product launch•  Social media efforts•  Different targets with different collections •  Sponsorship for sportspeople and sports events •  Swatches smelling of mint, strawberry and banana, etc.•  Swatch club – build and strength the relationships
  11. 11. Recap•  Permanent innovation: new products•  Other innovations: •  Culture •  Org structure •  Marketing •  Communication
  12. 12. Road ahead•  Brand repositioning + campaigns •  To attract a larger variety of consumers•  Recycling initiatives like UNIQLO’s •  To benefit the business in terms of revenue (cost down + profit up), reputation, and culture•  Last but not least, inspire and WOW consumers
  13. 13. References•  http://en.wikipedia.org/wiki/Swatch•  http://www.venturenavigator.co.uk/content/104•  http://www.swatch.com/zz_en/home.html•  http://www.scribd.com/doc/80909723/Case-Study-Swatch•  http://www.venturenavigator.co.uk/content/104•  http://timkastelle.org/blog/2011/12/avoid-fatal-business- models/•  http://www.management-issues.com/2010/1/18/opinion/ management-lessons-from--swatch.asp
  14. 14. •  Any questions?

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