Impact of Covid-19 on Luxury Watch Market: A Case Study of Watches of Switzerland
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Added on 2023/06/16
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This case study analyzes the impact of Covid-19 on the luxury watch market, with a focus on Watches of Switzerland. It discusses key issues such as inflation, supply and demand, and global economic growth, and examines global macro-environmental factors affecting the company.
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BM461 Global Business Environment 1
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Table of contents MAIN BODY..................................................................................................................................3 Contextual Background...............................................................................................................3 Key Issues....................................................................................................................................3 Global Macro – Environmental Factors......................................................................................3 REFERENCES................................................................................................................................4 2
MAIN BODY Contextual Background The luxury watch market has changed which has been impacted due to Covid 19 and this has been the major change in FTSE listed firm Watch of Switzerland. The luxury watch market has been impacted due to Covid 19 and has decreased value and profits which Watches of Switzerland is providing to customers (Kern, 2017).There has been major change in the luxury watch market in which selling and buying of products that is watches has been impacted scale of growth and development of business of Watch of Switzerland. The firms’ performance has also been impacted due to aspects Covid 19 impact. Key Issues There are three key issues which are being described as – Inflation, supply and demand, Global Economic Growth (GDP). Global Macro – Environmental Factors The global macro environmental factors for Watches of Switzerland are described as below - Inflation –The luxury watch market benefits from having the more pricing power than generic products which are produced in the market. Consumers are willing to pay higher prices as long as the Watches of Switzerland delivers the value to the products and services which are made available in the market at large scale (Čukman, 2021).The balance of inflation and deflation are 3
managed by the scale of economies when level of commoditization of products and services such as the Watches of Switzerland is placing helps in knowing that scale of business is perfectly acquiring and operation in the market structure. If the cost inflation of products of Watches of Switzerland passes the cost inflation or even price ahead then the products and services are being placed appropriately with some strategy. Supply and Demand –The supply and demand is the scale through which Watches of Switzerland are produced and developed which helps in knowing the target market and target customers at large scale. This helps in knowing the Watches of Switzerland and the luxury watches market is being pampered with the best selling products and services which are being designed for the customers as per their needs and requirements. Also according to the profits and sale of products of Watches of Switzerland are produced when best means of market capturing is known which enables supply and demand in the market of watches. This also enables to achieve business goals which helps in knowing the economies of scale and helps in engaging the customers to buy more products at large scale. Global Economic Growth (GDP) –Global Economic Growth of luxury watch market for Watches of Switzerland provides scale through which the growth is being impacted and what are measures which have made balance for economies of scale (Kapferer, 2017).The luxury watch market has grown back to personal disposable income by encompassing growth, supply and demand risk and along with this current and future market trends have also been channelized according to the business Watches of Switzerland is framing into for helping in economic growth and development of luxury watch market. This has also engaged in checking the supply and demand of products and services which are provided to customers’ at large scale. The main aim of the Watches of Switzerland has impacted business during this Covid 19 and post Covid 19. 4
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REFERENCES Books and journals Čukman, M., 2021.The role of disruptive innovation in the development of luxury watch industry(Doctoraldissertation,UniversityofZagreb.FacultyofEconomicsand Business. Department of Marketing). Kapferer, J.N., 2017. The end of luxury as we knew it?. InAdvances in Luxury Brand Management(pp. 25-41). Palgrave Macmillan, Cham. Kern, G.A., 2017. Engineering the Intangible: Strategic Success Factors in the Luxury Watch Industry. InEvolving Business Models(pp. 153-180). Springer, Cham. 6