BM461 Report: Analyzing Watches of Switzerland in Global Environment

This report examines the impact of global macro-environmental factors on Watches of Switzerland, a FTSE-listed firm in the luxury watch market. The report identifies key issues such as inflation, supply and demand dynamics, and global economic growth (GDP) and how these factors influence the company's performance. Specifically, it discusses how the luxury watch market, while benefiting from pricing power, must manage inflation effectively to deliver value to customers. The analysis also considers the importance of balancing supply and demand to optimize sales and profits, and how global economic growth impacts the company's overall business strategy. The report concludes by highlighting the challenges faced by Watches of Switzerland during and after the Covid-19 pandemic, emphasizing the need to adapt to changing market trends to maintain a competitive edge. Desklib provides access to similar solved assignments and study resources for students.

BM461 Global Business
Environment
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Table of contents
MAIN BODY..................................................................................................................................3
Contextual Background...............................................................................................................3
Key Issues....................................................................................................................................3
Global Macro – Environmental Factors......................................................................................3
REFERENCES................................................................................................................................4
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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
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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.
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REFERENCES
Books and journals
Čukman, M., 2021. The role of disruptive innovation in the development of luxury watch
industry (Doctoral dissertation, University of Zagreb. Faculty of Economics and
Business. Department of Marketing).
Kapferer, J.N., 2017. The end of luxury as we knew it?. In Advances 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. In Evolving Business Models (pp. 153-180). Springer, Cham.
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