Project Management for Rolex SA: Competitive Analysis and Strategy

This project provides a comprehensive analysis of Rolex SA, a leading luxury watchmaker. It begins with a background of the company, exploring its founding, reasons for its appeal, product offerings, and market share in key regions like the US and China. The project delves into a comparative analysis of Rolex's competitive position, identifying its strengths, weaknesses, and major competitors such as Omega and Cartier. It examines the company's strategies for global market considerations, including cultural adaptations and organizational structure, utilizing frameworks like the CAGE framework and Ansoff matrix to assess its future prospects and strategic options. The analysis highlights Rolex's reputation, innovation, and niche marketing strategies, while also acknowledging challenges and providing insights into maintaining its market leadership in the face of competition and changing market dynamics. The project also touches on the company's employee base and its implications on the overall business strategy.

PROJECT MANAGEMENT FOR ROLEX SA
PROJECT MANAGEMENT FOR ROLEX SA
By (Name)
Course
Instructor’s Name
Institutional Affiliation
The City and State

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PROJECT MANAGEMENT FOR ROLEX SA
Table of Contents
1.1 Background........................................................................................................................3
1.2 The reasons why I choose Rolex....................................................................................3
1.3 Why people are interested in Rolex..............................................................................4
1.4 Products, services and countries of operation of Rolex.................................................4
1.5 Market share..................................................................................................................5
1.6 The Employees...............................................................................................................6
2. Comparative analysis of how the Rolex..............................................................................6
2.1 The competitive position of Rolex in the market...........................................................6
2.2 Competitive position of Rolex....................................................................................10
2.3 The biggest competitors or Rolex SA........................................................................11
2.4 Where Rolex company is more successful and why...................................................13
2.5 Company weakness and why......................................................................................14
2.6 Theories to analyse the company’s performance........................................................14
3.0 Global Challenges............................................................................................................17
3.1 Considerations for international market......................................................................17
3.2 Why do they need to consider this?.............................................................................18
3.3 How does the company deal with different cultures?..................................................19
3.4 Does it standardize/ adapt its products/ services/...........................................................19
3.5 Organizational structure.................................................................................................19
3.6 CAGE framework..........................................................................................................20

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PROJECT MANAGEMENT FOR ROLEX SA
3.7 The future prospects of Rolex SA Company.................................................................22
3.8 Ansoff matrix.................................................................................................................22
Conclusion................................................................................................................................24
References................................................................................................................................26

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PROJECT MANAGEMENT FOR ROLEX SA
ROLEX SA
1.1 Background
Rolex SA is one of the largest and leading luxury watch making companies in the
world. Hans Wilsdorf and Alfred Davis in United Kingdom, London, founded it in 1905. The
company headquarters is based in Geneva in Switzerland, where it was transferred from the
UK due to the high costs of gold and silver as well as the taxes imposed on luxury products in
the UK by then (Musetescu and Chira 2015, 119)
1.2 The reasons why I choose Rolex
Basing on the fact that Rolex is the leading and largest premium watch-making brand,
I find it very relevant to explore the strong heritage of the company. The company has for
over decades proved its self the leading superior quality watch producer with the upper class
as their primary target market. Rolex SA has been involved in many inventions’ and
innovation of latest technology, for example, the first waterproof watch, self-winding and
multiple time zones simultaneously. In my study, I therefore, intend to investigate critically
the extent to which the company has favourably been able to survive in the competitive
luxury industry/ market, mainly China, and the United states (US). Furthermore, the study
will also explore in details, how the Rolex Company can create more strong impact in the
industry (Motta and Barbosa 2013, p.34)
1.3 Why people are interested in Rolex
Rolex has managed to maintain its brand name as a status symbol from the time of its
invention. The customers of Rolex are premium class for whom the brand signifies The
Company uses expensive raw materials like gold, silver, which makes the company, stand out

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in the industry. The company also makes high use of latest technologies; the movements are
all hand assembled and tested which ensures perfect satisfaction. In USA the effective
advertising campaigns in which the brand has, featured Hollywood celebrities and sports
person makes the brand more popular among the people. In china, the brand has represented
itself as a brand for the Royal, the rich and affluent and hence the brand is very popular
among the premium class. The most important reason for the brand to be so popular in China
that it was the first luxury watch brand to enter China hence it has successfully gained loyal
customers. (Nagasawa and Sugimoto 2010, p.1293)
1.4 Products, services and countries of operation of Rolex
In relation to the preceding identified markets as areas of emphasis, (China and US),
the company has a wide variety of brands that it produces to meet the diverse demand of its
customers, which is a result of the operations of Rolex in two different countries that have
different cultural attachments and preferences. It is palatably true that the various countries
have different tastes and preferences that demand such diversities. Amongst others, the
company manufactures brands like, Yacht-Master, Submariner, Sky-Dweller Milgauss,
Pearlmaster, Sea-Dweller, Oyster Perpetual GMT Master Explorer II Daytona, Lady-
Datejust, GMT-Master II, Explorer, Day-Date Datejust 41, Datejust, Datejust II, Air-King,
Cellini. However, it is important to note that though our areas of emphasis are mainly three
countries, research indicates that the company has over 28 affiliates, extending their
operations to over 100 countries across the world (Berthon et al 2002, p50)
1.5 Market share
According to business, new United States provides the largest market for the luxury
watches in the world. Rolex holds the biggest market share in the US though there is a stiff
increase in the level of competitions mainly from the smart watch industries like apple.

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PROJECT MANAGEMENT FOR ROLEX SA
However, the company latest brands indicate demonstration of technological commitment to
maintain its market position/ share
Research studies from reputation’s institute China Rep Track indicate that Rolex SA
holds the second position in the most reputable company among the Chinese public. The
ranking was based on the top one hundred most reputable companies in china. Focusing on
the watch luxury market of china in 2011- 2012, Rolex faces a stiff competition as its gap
with omega, the main competitor has considerably reduced as compared to the 2008 reports.
As preceding discovered, the company is the second in the top 100 most reputable industries
and the first in the watch making industry (Harris et all., 2016). This gives an upper hand in
attracting the premium the upper class. The implication of this is that the company is still
regarded as the best in the industry though the revenue of its competitor may be high because
of catering for all the classes of customers. Looking at the current market structure,
Myanmar has one of the highest growing markets for luxury watches according to the reports
from the most recent literature. Rolex however, still holds as one of the leading supplier to
the high end mrket though other brands attracts the attention of other classes (Razeghi et al
2014, p.120)
1.6 The Employees
In spite of the fact that the corporation headquarters is located in Switzerland, USA
and China takes the highest percentage of employees, that is to say over 50% of the total
company employees. It is also important to note that the corporation has an approximation of
2800 workers worldwide according to the official company website (Keller 2009, p.129).
2. Comparative analysis of how the Rolex
Company is competing in the industry and its competitive position. (The impact of the
company’s activity in the promotion of its sales and revenue)

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PROJECT MANAGEMENT FOR ROLEX SA
2.1 The competitive position of Rolex in the market
With over 110 years of operation, Rolex has been able to manipulate the market in
order to maintain its reputation in the industry. According to the 2014 statistics by the
Reputation Institute, it was found that Rolex lies in the first position in reputation among the
worlds’ largest companies in the world after Walt Disney and Google. These statistics are
implied directly in the respective countries of USA and china. Relating it to the global
market, the latest research of 2017 indicates that Rolex is the most reputable company in the
world ( McGregor et al., 2009). The research studies were based on the findings of consumer
survey data that was collected from the biggest consumer markets in the world that included
USA and china. From the results of the investigation based on the interviews carried out, the
typical features the most reputable companies had was based on high levels of customers trust
and delivering high-quality goods and services that meet the consumers’ expectations (Tang
Liou and Peng 2008, 340).

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PROJECT MANAGEMENT FOR ROLEX SA
The chart below shows the most reputable companies in the world in ascending
order.
Source: Reputation Institute Report, 2017
With such level of reputation, the Rolex is able to attain a considerable competitive
advantage over its competitors. This reputation lets the company guarantee its premium class
customer that the brand is consistent in its performance to deliver the quality it has committed
to its customers.
Innovation is yet another factor that has helped the company to compete in the
industry favourably. It has maintained a remarkable position in leading innovation and
invention of new technologies. It was the first watch making company to launch water a
waterproof watch, the oyster that was produced in 1926, the first watch to two simultaneously
show two-time zone, the GMT master, in 1954. Rolex also led the innovation in the
development of quartz watch movements in the 1960s. This is an implication that the
company has invested immeasurable effort in ensuring the use of latest technology in making
of its products. For the improvement of customer satisfaction, the company has manual

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PROJECT MANAGEMENT FOR ROLEX SA
assembles in USA, Myanmar, china, etc. this is all aimed at reducing mechanical errors and
improving customer (Priede 2012, 1470).
Priede 2012
The company was the first to be crowned with the chronometer certification in
making wristwatches. Up to date, the Rolex Company still submits the largest/ highest
number of movements to COSC.

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PROJECT MANAGEMENT FOR ROLEX SA
Looking at the brand
name developed by the
company, it holds a higher
prestige symbol as compared to
its competitors, which is
an automatic implication that the high classes prefer it as a symbol of defining their classes.
With such reputation earned by the company, the brand name gains a higher competitive
advantage, which still prevails (Berry Seiders, and Hergenroeder 2006, p350).
One of the most important strategies that the company is also adopting is niche
marketing. The company has adopted status differentiation that comes with the high quality
of its products. In other word, the company typically targets high end market through the
advertisement of its products in high end events for example, in competitions like the
Shanghai Rolex master, the slam show of Rolex grand jumping, the US open (golf
completion) and many other high class shows. This is an implication that the company targets
events where influential and public figures are found. This considerably boosts the company
premium reputation, sales and popularity. It has been realised through the production of
unique blends of latest classic cuts and designs (Boyer and Verma 2009)

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2.2 Competitive position of Rolex
(da Silva Lopes, 2015)
As in the preceding chart, the Hong Kong provides the leading market for swiss
watches; this is a worldwide data of exports while US and China are among the top export
markets for the company as it is among the top 10 biggest market for the company.

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PROJECT MANAGEMENT FOR ROLEX SA
2.3 The biggest competitors or Rolex SA
Schluep, Campo and Aerni 2016
In spite of the fact that Rolex is the biggest and most reputable brand of luxury wrist
watches, the company faces a stiff competition from other brands. This has been there for
over decades i.e. from the time of its establishment, other companies existed. The company
faces serious threats from these big competitors and among the many, the biggest and most
threatening are; the Omega, Cartier, Patek Philippe, Longiness and Tissot, which was
founded in 1848, even before the Rolex Company was established. In the year was the 2014