ETA's Business Strategies: Analysis of Market Penetration and Growth

This report analyzes the business strategies of ETA, a company known for its ultra-thin mechanical movements and its relationship with the Swatch Group. The report focuses on ETA's market penetration strategy, detailing how the company has aimed to increase its market share by selling existing ...Read More

BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business management can be considered as controlling, monitoring, organizing and
planning activities that support entities in accomplishing their objective. Companies make long
term plan of actions so that they can meet their goal (Kamal, 2014). Present report is based on
ETA which is noted for its Swatch's fashion watch development. ETA is popular in entire world
for its ultra-thin mechanical movements. Assignment will discuss business level strategy of ETA.
MAIN BODY
The Swatch group limited is popular for making fashionable watches. It operates its
business in more than 50 countries. Swatch group has acquired many firms. ETA has adopted
many business strategies with Swatch. In order to gain competitive advantage company has
adopted market penetration strategy. Market penetration can be defined as selling of products in
specific market (Jones and Bennett, 2013). In order to increase market share of the firm
companies sell their existing products and services in the existing market. That supports in
enhancing sales volume of the organisation and gaining competitive advantage.
ETA has made changes in its working culture and encouraged its staff members (Swatch
decision on ETA movements shakes up world of chronographs, 2017). That supports in
improving production of the business to great extent. For enhancing morale, ETA's director has
given challenge to its skilled engineers that to make the thinnest quartz analogue watch. This
strategy has helped in making people loyal towards the brand and by this way company has
become able to make innovative fashionable watches (Aldrich and Sonnenschein, 2013). That
has attracted more consumers towards the brand. By this way sales volume of watches get
increased to great Ethernet.
Thomke has decided that ex-factory price needs to be quarter the retail prices, that was
another business strategy of the company. Individual has targeted to make quartz watches to
retail. It was the strategy that to minimize unit of each item. ETA has decided to improve their
production process so that company can minimize unit cost and can earn more profit in the
market (Hoffmann, Ramirez and Lecamp, 2016). That has increased profit to the entity and has
Improved its brand image as well.
production of quality watches was another business strategy of cited firm. Company has
improved its quality in dials, hands and straps other than this it has offered battery replacement
option as well. It was assumed that through this strategy cited firm will be able to sell 10 million
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units of fashionable watches in next three years. Team of Swatch and ETA has make innovative
strategy and they have linked the products of ETA with fun, excitement and fashion (Swatch
Group History (yesterday), 2017). Company has targeted 18 to 30 age group people.
Fashionable watches and quality services has helped cited firm in gaining competitive advantage.
CONCLUSION
From the above report, it can be concluded that business strategies of ETA has
supported the cited firm in sustaining in the market for longer duration. Strategy of adding name
of the brand with fun and fashion was great tool that has attracted young customers.
Improvement in production process was another great strategy. With the help of this tool
company has reduced its unnecessary cost and has increased its market share as well.
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REFERENCES
Books and Journals
Aldrich, D. F. and Sonnenschein, M., 2013. Digital Value Network: Erfolgsstrategien für die
Neue Ökonomie. Springer-Verlag.
Hoffmann, J., Ramirez, R. and Lecamp, L., 2016. Turbulence in the Watchmaking Field: A
socioecological approach to strategizing.
Jones, B. and Bennett, L., 2013. Blurring boundaries, crossing divides: An interview with Will
Brooker. Participations: The International Journal of Audience and Reception
Studies. 10(1). pp.335-350.
Kamal, A. M., 2014. Industrial attachment report on Esquire Knit Composite Ltd. Daffodil
International University.
Online
Swatch decision on ETA movements shakes up world of chronographs, 2017. [Online] Available
through: <https://www.ft.com/content/bf7ad61c-2767-11e3-8feb-00144feab7de>.
[Accessed on 19th August 2017].
Swatch Group History (yesterday), 2017. [Online] Available through:
<http://www.swatchgroup.com/group_profile/history/yesterday>. [Accessed on 19th
August 2017].
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