Strategic Management of Rolex

This assignment delves into the strategic management of Rolex, a luxury watch company. It examines Rolex's target market segmentation, employing examples like 'Target Customer' slides to illustrate their approach. The analysis highlights Rolex's effective strategies, referencing tools like Porter's Five Forces Model and Blue Ocean Strategy (Strategy Canvas), to understand its competitive advantage. The paper also touches upon the influence of auditing on Rolex's understanding of its internal and external environment.

STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.) Background of ROLEX.........................................................................................................1
TASK 1............................................................................................................................................2
2.) Target customer.....................................................................................................................2
5.) Auditing of working scenario................................................................................................3
3.) Positioning of ROLEX...........................................................................................................5
4.) Marketing Mix.......................................................................................................................5
6.) Resources and evaluation.......................................................................................................6
7.) Management Agenda.............................................................................................................6
8.) Internal and external linkages................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic management is includes all such criteria which help company to have an
effective working in organisation. The concept is such which lead to have an identification and
description of various strategies which somewhere make them to achieve their goal and objective
(Freeman, 2010). The report is based on ROLEX which is a wrist watch company and founded
by HANS WILSDORF and ALFRED DAVIS in year around 1905. Assignment will include
background of firm and target customer and positioning of brand showing with tabulation and
having an audit of it and producing a plan.
1) Background of ROLEX
ROLEX is among the oldest brand in wrist watches and it is founded by ALFRED
DAVIS and HANS WILSDORF. Therefore, earlier the watches is being sold to jewellers only
and then they usually put their name on the dial and founders name was generally hallmarked at
the cashback of watch. After this, in year approx. 1908 founders gone with having a registration
and brought trademark as “ROLEX” and went on to open their office in La Chaux-de-Fonds,
Switzerland. The word came from French phrase which means “exquisite clockwork”. Wilsdorf
also said that the name should be such which is ease to pronounce and they come up with name
ROLEX.
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Therefore, the ROLEX has earned higher in last year and thus they have performed in
better manner even though in comparison to previous years of their working as well.
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Illustration 1: ROLEX profit in year
(Source: ROLEX Company limited, 2017)

TASK 1
2) Target customers
ROLEX is that brand which millions of people dreams to buy, firm produces luxury wrist
watches and not a single product of entity matches with its other models. Company manufactures
the high priced watches as because having a quality in their each product and cost is generated to
produce is also high so the price is being set according to manufacturing of ROLEX. Moreover,
firm targeted the rich society as brand is a showcase of luxury and only can be purchased by
higher society people (David, 2011). Organisation targeted customer on the basis of demographic
scenario in which income is also a factor which converts the person to buy anything.
Entity targeted the youth as because they are those who wants to wear branded products
so that standard of living can be showcased to others. It is required to target a market in proper
way as it is all about satisfying them and earning high profit in competitive market. Although
various consumer do have different kind of needs and wants and thus company try to provide
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satisfaction to their customer through quality products as well. Generally firm is working with
fast changing criteria in right contrast.
Source: Hartman, A 2018
However, targetted groups are classified into various groups such as; demographic and
behavioural in order to capture attention of maximum clients for acquiring maximum revenue.
Mainly, Rolex is a very famous brand by having their branches across the international borders
but they are also having a positive image at marketplace which is highly beneficial for company
while promoting their goods at global market. Apart from this, selected firm is segregating their
market into various parts on the basis sex, gender, caste, location, age, religions and so on. As a
result it aids them in understanding the minds of distinct people so that they can easily seek the
attention of maximum consumers.
5) Auditing of working scenario
Strategy is such which is helping company to perform better in marketing environment
and thus such concept help firm to attain their goal and objective under the different condition of
uncertainty and also make organisation to accomplish their long term objectives as well. This
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Illustration 2: Target Audience, 2018

help to have a better working in entity and increase performance of employees and company as
well.
According to Kim and Mauborgne and they says that success does not come up with the
competing in different crowds and market. But this come up with having or creating an own
decided market scenario (Hitt, Ireland and Hoskisson, 2012). Moreover, one thing is being
included in this as Canvas which is a simple in terms but having a powerful visual image in the
methodology. This is something that can be built in balanced scorecard software as well.
Although it simple means creating a line which plots in opposite of importance for firm and
makes themselves to overlap the competitors and entity benchmarks in better way.
Positioning of ROLEX: ROLEX is such which already has created their value for its
customer in right prospect and somewhere it has also seen that strategically they lived up to their
brand. Moreover there are 10 golden rules which help ROLEX to produce their product in proper
way. Some of the golden rules are as:
 Waterproof case
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Illustration 3: Strategy Canvas, 2018.
source: Kim and Mauborgne, 2018.

 Perpetual rotor
 Oyster case
 Quality control
 Finest and purest material
 Roles testing etc.
ROLEX is that company who does not allow their product to be sold anywhere in the
liberal world. As this is known as “no to the second life”. Company has successfully positioned
their brand in customer eyes and thus through the water case resistant and thus could move in
depth of 100m. Although it can be seen as ROLEX also conveys their messages to its customers
in right manner (Wheelen and Hunger, 2011). The content includes for consumers as ROLEX
watches are wealthy, attractive and line interesting lives. The elements company includes are:
 ROLEX leads in market.
 Time is money.
 It focuses on wealthy consumers, etc.
3) Positioning of ROLEX
Firm also work for future and they also goes with having an image in market and
customer as well. Even though the company is having a many competitors in this field.
Moreover, firm also light the quality of their products and receives overall attention and although
it is also there that positioning of Brand will separate firm from the area of competition in better
manner (Moutinho, 2011). Therefore, having an overall strategy of marketing will help them to
differentiate ROLEX in entity eyes. There are various major competitors in market of firm and
some of those are as follows:
 Timex
 Longines
 RADO etc.
The porter's five forces model which help to analyse the market and their competitors in
right manner and they are as follows:
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Supplier power: This is that which is being driven by number of suppliers and their
input and uniqueness of product or services and realize size and strength of supplier and although
it makes from switching one supplier from one to another.
Buyer power: An assessment of things done and it makes them to price down as well.
This is that driven by number of buyers and importance of the thing individual buyer and
organisation and cost will occur for switching one supplier to another.
Competitive rivalry: This is that number and having a capability to competitors in
market. Offering undifferentiated product will make them to reduce the market attractiveness.
Threat of substitution: Although the substitute product is such which exist in market, it
also increases the likelihood and customer and alternatives has to increase the price as well.
Threat of new entry: Profitable markets is such which attract the new entrants as well,
which also erodes the profitability in right contrast as well. Moreover, it is being such which has
strong and such has barrier to entry in market.
4) Marketing Mix
The marketing mix help company in various way and 4p's are such which somewhere
help firm to earn higher profits in right contrast as well. The 4p's are as follows:
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Illustration 4: Porter's Five Forces Model
Source: Porter five model, 2018.

Price: ROLEX is producing their product and service for the rich people who has a
standard of living and set high prices as materials used by ROLEX is high class and quality
watches are there so to cover the cost of production prices are set highly and few models are
there whose prices are set at reasonable worth (Hair and et. al., 2012).
Place: ROLEX chooses such place where customers can reach in ease mode and can buy
their wrist watch and even though place also plays an important factor in increase in sales and
thus showroom should be convenient to population.
Promotion: ROLEX do uses various method of promotion in market so that they can
inform large population in market and thus also attract millions of people to earn higher profit in
right contrast.
ROLEX blueprint for transferring from current to desired position
Product: ROLEX is having various model of their brand and thus for each model the
prices are quite different and even company is producing the quality products which help to
satisfy customer demand and needs (Ackermann and Eden, 2011).
6.) Resources and evaluation
The company ROLEX is that which is working in proper manner and thus company uses
the available resources in right manner and thus evaluation is required to be done in correct
format which help firm to have an effective working on organisation so they firm can attain their
goal and objective. Moreover, ROLEX uses their strength and weaknesses in effective way
which help to perform in perfect way.
7.) Management Agenda
ROLEX is such which make various strategy and plan to move from current state to
desired position in market (Keupp, Palmié and Gassmann, 2012). Planning is that which has to
be done after including like (Costs, resources and responsibilities). Moreover, working in firm in
better manner always make entity to earn higher profit even though in a single year as well.
Costs: It is that which occurs at the time of manufacturing a product of ROLEX in
quality and somewhere the firm also tries to minimise their cost so that prices can be set at
reasonable as that sales can also get increased in right prospect and resources does also used in
effective way as well.
Resources: ROLEX does used the quality materials at the time of producing their wrist
watches for rich category. Firm also goes by using their resources in efficient way and does not
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allow the employees to have wastage of their resources and materials used for producing and
organisation goes with having an innovation and creativity in their working as well.
Responsibility: Every member who is working for such brand has the responsibility to
perform their duty in best way and thus ROLEX is that brand which sell their product by just its
name as company produces quality product which satisfy the customer needs.
8.) Internal and external linkages.
There are various things which has to be improved and somewhere this thing help
ROLEX to work in right manner and it also help to attain their goal and objective in better
manner as well (Poister, 2010). Moreover the company is looking forward to improve the
internal linkage and one of the external linkage as well and their explanation is as follows:
Internal linkages: These linkages are such which is related to organisational internal
system and this is something which can be controlled by the company and even firm is looking
forward to strengthen their one of the thing so that they can work in proper way.
The thing which is required by them to bring cost in control and thus such thing help
them to reduce the manufacturing cost of product and allow them to use their resources in right
contrast as well.
External linkages: These linkages are such which include all such criteria that cannot be
controlled and even though company has to make various strategy which help to overcome the
risk of external linkages and thus such thing has to be done in right contrast as well.
CONCLUSION
From the above report it can be stated that, Strategic management is such which help
company to have an effective working in the company and transform them to attain their goal
and objective in right contrast as well. Target market is also done by ROLEX and auditing does
helped them to know the working scenario, various internal and external linkages are there which
needs to be overcome and various resources are there which needs to be taken under for efficient
working as well.
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REFERENCES
Books and Journals
Freeman, R.E., 2010. Strategic management: A stakeholder approach. Cambridge university
press.
David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Thompson, J.L. and Martin, F., 2010. Strategic management: Awareness & change. Cengage
Learning EMEA.
Hair, J.F., and et. al., 2012. The use of partial least squares structural equation modeling in
strategic management research: a review of past practices and recommendations for
future applications. Long range planning. 45(5-6). pp.320-340.
Ackermann, F. and Eden, C., 2011. Strategic management of stakeholders: Theory and practice.
Long range planning. 44(3). pp.179-196
Poister, T.H., 2010. The future of strategic planning in the public sector: Linking strategic
management and performance. Public Administration Review. 70(s1).
Keupp, M.M., Palmié, M. and Gassmann, O., 2012. The strategic management of innovation: A
systematic review and paths for future research. International Journal of Management
Reviews. 14(4). pp.367-390.
Online
Target customer, 2018. [Online]. Available through:
<https://www.slideshare.net/AmandaHartman6/rolex-digital-strategy-presentation>.
Strategy canvas, 2018. [Online]. Available through:
<https://www.blueoceanstrategy.com/tools/>.
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