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Project Management for Rolex SA: Assignment

Added on - 23 Mar 2020

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PROJECT MANAGEMENT FOR ROLEX SAPROJECT MANAGEMENT FOR ROLEX SABy (Name)CourseInstructor’s NameInstitutional AffiliationThe City and State
1PROJECT MANAGEMENT FOR ROLEX SATable of Contents1.1 Background........................................................................................................................31.2 The reasons why I choose Rolex....................................................................................31.3 Why people are interested in Rolex..............................................................................41.4 Products, services and countries of operation of Rolex.................................................41.5 Market share..................................................................................................................51.6 The Employees...............................................................................................................62. Comparative analysis of how the Rolex..............................................................................62.1 The competitive position of Rolex in the market...........................................................62.2 Competitive position of Rolex....................................................................................102.3 The biggest competitors or Rolex SA........................................................................112.4 Where Rolex company is more successful and why...................................................132.5 Company weakness and why......................................................................................142.6 Theories to analyse the company’s performance........................................................143.0 Global Challenges............................................................................................................173.1 Considerations for international market......................................................................173.2 Why do they need to consider this?.............................................................................183.3 How does the company deal with different cultures?..................................................193.4 Does it standardize/ adapt its products/ services/...........................................................193.5 Organizational structure.................................................................................................193.6 CAGE framework..........................................................................................................20
2PROJECT MANAGEMENT FOR ROLEX SA3.7 The future prospects of Rolex SA Company.................................................................223.8 Ansoff matrix.................................................................................................................22Conclusion................................................................................................................................24References................................................................................................................................26
3PROJECT MANAGEMENT FOR ROLEX SAROLEX SA1.1 BackgroundRolex SA is one of the largest and leading luxury watch making companies in theworld. Hans Wilsdorf and Alfred Davis in United Kingdom, London, founded it in 1905. Thecompany headquarters is based in Geneva in Switzerland, where it was transferred from theUK due to the high costs of gold and silver as well as the taxes imposed on luxury products inthe UK by then (Musetescu and Chira 2015, 119)1.2 The reasons why I choose RolexBasing 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 forover decades proved its self the leading superior quality watch producer with the upper classas their primary target market. Rolex SA has been involved in many inventions’ andinnovation of latest technology, for example, the first waterproof watch, self-winding andmultiple time zones simultaneously. In my study, I therefore, intend to investigate criticallythe extent to which the company has favourably been able to survive in the competitiveluxury industry/ market, mainly China, and the United states (US). Furthermore, the studywill also explore in details, how the Rolex Company can create more strong impact in theindustry (Motta and Barbosa 2013, p.34)1.3 Why people are interested in RolexRolex has managed to maintain its brand name as a status symbol from the time of itsinvention. The customers of Rolex are premium class for whom the brand signifies TheCompany uses expensive raw materials like gold, silver, which makes the company, stand out
4PROJECT MANAGEMENT FOR ROLEX SAin the industry. The company also makes high use of latest technologies; the movements areall hand assembled and tested which ensures perfect satisfaction.In USA the effectiveadvertising campaigns in which the brand has, featured Hollywood celebrities and sportsperson makes the brand more popular among the people. In china, the brand has representeditself as a brand for the Royal, the rich and affluent and hence the brand is very popularamong the premium class. The most important reason for the brand to be so popular in Chinathat it was the first luxury watch brand to enter China hence it has successfully gained loyalcustomers. (Nagasawa and Sugimoto 2010, p.1293)1.4 Products, services and countries of operation of RolexIn 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 itscustomers, which is a result of the operations of Rolex in two different countries that havedifferent cultural attachments and preferences. It is palatably true that the various countrieshave different tastes and preferences that demand such diversities. Amongst others, thecompany 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 threecountries, research indicates that the company has over 28 affiliates, extending theiroperations to over 100 countries across the world (Berthonet al2002, p50)1.5 Market shareAccording to business, new United States provides the largest market for the luxurywatches in the world. Rolex holds the biggest market share in the US though there is a stiffincrease in the level of competitions mainly from the smart watch industries like apple.
5PROJECT MANAGEMENT FOR ROLEX SAHowever, the company latest brands indicate demonstration of technological commitment tomaintain its market position/ shareResearch studies from reputation’s institute China Rep Track indicate that Rolex SAholds the second position in the most reputable company among the Chinese public. Theranking was based on the top one hundred most reputable companies in china. Focusing onthe watch luxury market of china in 2011- 2012, Rolex faces a stiff competition as its gapwith 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 industriesand the first in the watch making industry(Harris et all., 2016).This gives an upper hand inattracting the premium the upper class. The implication of this is that the company is stillregarded as the best in the industry though the revenue of its competitor may be high becauseof 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 reportsfrom the most recent literature. Rolex however, still holds as one of the leading supplier tothe high end mrket though other brands attracts the attention of other classes (Razeghiet al2014, p.120)1.6 The EmployeesIn spite of the fact that the corporation headquarters is located in Switzerland, USAand China takes the highest percentage of employees, that is to say over 50% of the totalcompany employees. It is also important to note that the corporation has an approximation of2800 workers worldwide according to the official company website (Keller 2009, p.129).2. Comparative analysis of how the RolexCompany is competing in the industry and its competitive position. (The impact of thecompany’s activity in the promotion of its sales and revenue)
6PROJECT MANAGEMENT FOR ROLEX SA2.1 The competitive position of Rolex in the marketWith over 110 years of operation, Rolex has been able to manipulate the market inorder to maintain its reputation in the industry. According to the 2014 statistics by theReputation Institute, it was found that Rolex lies in the first position in reputation among theworlds’ largest companies in the world after Walt Disney and Google. These statistics areimplied directly in the respective countries of USA and china. Relating it to the globalmarket, the latest research of 2017 indicates that Rolex is the most reputable company in theworld ( McGregor et al., 2009).The research studies were based on the findings of consumersurvey data that was collected from the biggest consumer markets in the world that includedUSA and china. From the results of the investigation based on the interviews carried out, thetypical features the most reputable companies had was based on high levels of customers trustand delivering high-quality goods and services that meet the consumers’ expectations (TangLiou and Peng 2008, 340).
7PROJECT MANAGEMENT FOR ROLEX SAThe chart below shows the most reputable companies in the world in ascendingorder.Source: Reputation Institute Report, 2017With such level of reputation, the Rolex is able to attain a considerable competitiveadvantage over its competitors. This reputation lets the company guarantee its premium classcustomer that the brand is consistent in its performance to deliver the quality it has committedto its customers.Innovation is yet another factor that has helped the company to compete in theindustry favourably. It has maintained a remarkable position in leading innovation andinvention of new technologies. It was the first watch making company to launch water awaterproof watch, the oyster that was produced in 1926, the first watch to two simultaneouslyshow two-time zone, the GMT master, in 1954. Rolex also led the innovation in thedevelopment of quartz watch movements in the 1960s. This is an implication that thecompany has invested immeasurable effort in ensuring the use of latest technology in makingof its products. For the improvement of customer satisfaction, the company has manual
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