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 ...Read More

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

1
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

2
PROJECT MANAGEMENT FOR ROLEX SA
3.7 The future prospects of Rolex SA Company.................................................................22
3.8 Ansoff matrix.................................................................................................................22
Conclusion................................................................................................................................24
References................................................................................................................................26

3
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

4
PROJECT MANAGEMENT FOR ROLEX SA
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.

5
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)

6
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).

7
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

8
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.

9
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)

10
PROJECT MANAGEMENT FOR ROLEX SA
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.

11
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

12
PROJECT MANAGEMENT FOR ROLEX SA
the annual sales of Rolex was 4,500 CHF million and that of its competitor Omega which is
second in sales after 2150 CHF million was the annual sales of Omega in that year. The sales
of Cartier was 2140 CHF million, Patek Phillepe’s annual sales was 1280 CHF million and
Longiness was 1240 (Schluep, Campo and Aerni 2016).
(D’arpizio et al. 2015).
The statistics as of 2015 indicate that the company is facing a stiff competition from
other players in the industry. One of the core explanation of the reduction in the quantity
demanded of the product brands can directly be linked to the high prices (the high-end target
market). In other words, clients of average and low classes are hardly catered for and yet they
out compete he high-end market. This explains why other companies could top up the table in
times to come. However, the company still holds its position as the best wristwatch company
in the world. As explained earlier, the company is rated the most reputed in the world as of

13
PROJECT MANAGEMENT FOR ROLEX SA
recent statistics. This indicates that the Rolex still hold its market, taking the biggest
percentage of the high end/ luxury wrist watch market (D’arpizio et al. 2015)
Omega is also a high end/ premium-making brand that has one of the most reputable
name in the industry for example the Omega speed master mark II. Currently, Patek Philippe
is also one of the most prestigious watch-making brand that is creating a stiff completion with
other big role players in the industry. It has a record of having the most expensive auctioned
watch in the year 2014. Other brands in the market include Audemars piguet, founded in
1875, Vachereron Constantin founded in 1755, Blancpain founded in 1735 and very many
others (Green and Smith 2002, p.100)
2.4 Where Rolex company is more successful and why
Rolex has years enjoyed its brand name over the years and as analysed earlier, it is
still the leading and best quality brand in the market. The reputation provides them an
advantage in selling to the premium class of the society. Various researches have shown that
the high classes have Rolex watches as their choice for hand wrists. Research studies indicate
that it’s the most successful in the world as far as the high end watch making industry is
concerned which reflects an insight on the researcher’s areas of concern (Bocken,et al 2014,
p50). It is true that people always want reliable/ dependable products and Rolex has the
record of making the best ever quality wristwatches in the industry. The company’s success
can also be explained by the high technological innovation that it has carried out over times.
As established from research findings earlier, the company took the forefront in innovation of
new technology in the industry. Some of the technological innovations included inventing the
first waterproof watch case. The company was also the first to manufacture a brand that
simultaneously showed two time zones and this gives it an upper hand in the market (Torelli
Monga and Kaikati 2011, p.950).

14
PROJECT MANAGEMENT FOR ROLEX SA
2.5 Company weakness and why
Rolex Company is best known for its high product brand. This implies that it the
production of the company is to a specific target market, i.e. the high class. It is not
considering the need for diversification to cover the entire class of people. In other words, its
products are so expensive and can only be purchased by a few high class/ premium customers
in the market. This explains why other players in the industry are having higher revenue as
compared to it. The company should consider making products that can be purchased by
other lower class customers. In this way, it would be able to increase on its average revenue
as well as increasing its popularity in the industry. Considering the demographic information
statics, the highest selling players in the industry have both low and high-class products for
purposes of diversification in the output. However, the main form of competition comes from
conglomeration. Rolex is not putting much emphasis on conglomeration and yet its biggest
competitors are doing so.
As shown in the statistics, the top selling competitors are swatch group and
Richemont who are all involved in conglomeration (Reyneke 2011, pp30).
2.6 Theories to analyse the company’s performance
Evaluation of Rolex Company using Porter’s generic competitive strategies
It is a known fact that a firm’s competitive position in the industry in which it
operates has a direct effect on the profitability level that is either above or below the industry
profit. In this case, therefore, we use the porter’s generic competitive strategies to analyse and
evaluate Rolex’s position in the industry. Porter emphasizes four strategies that a firm should

15
PROJECT MANAGEMENT FOR ROLEX SA
consider in its competitive race. That is to say, coast leadership, cost focus, differentiation,
and differentiation focus (Zednik and Strebinger 2008, p.310)
Source; (Zednik and Strebinger 2008)
Cost leadership. Citically evaluating the market percante of rollex in the
watch aking industy, it is considered one of the largest firms. This implies that the
company enjoys economies of scale which comes along with larger players in the
industry. Rolex can easly exploit a small percentage of its revenue to exploit the
technological innovation and invetion to improve on its competitveness. This has been
witnessed in its brands as discussed before. According to porter, if a firm is able to
take the overall cost leadership, it tops the perfomance in the industry. We can
therefore say that Rolex is a low cost producer in its industry (O’cass and Frost 2002,
p.67). The company should however consider revising the pricing of its brand as far
as the target market is concerned. It should cover all the classes to improve on its
revenue and prevalence in the industry.

16
PROJECT MANAGEMENT FOR ROLEX SA
Differntiation; rolex has a high level of differntiation of its products. The
company has a strong brand name world wide including China and USA Rolex holds
the first and second position in in the US and china respectively.In China people are
more inclined towards buying luxury products. Rolex is prefered by the customers in
China becuse it was the first brand of luxury watches to enter China and hence the
brand has successfully gained loyal customers. Rolex watches are trendier and more
stylish than other luxury watches and hence people of US who are particular about
style and fashion prefer it (Deschamps, and Nelson 2014, p.43). This has made the
people of the upper middle class and the premium class people choose the products of
Rolex. According to recent reports, there has been a continued trends in the high
class luxury watches of rolex in the country. Rolex has incredibly invested in brand
differentiation by using unique and expensive raw materials for the manufacture of its
watches (Deschamps, and Nelson 2014, p.43). It also has branded shops in the US and
china and many other countries. This is all focused on maintaining high level of
product differentiation and minimizing counterfeight that could cause mistrust in the
company.
.
Differentiaon leadership; focusing on this strategy, rolex has specific points
of focus which makes it unique from its competitors. It has mainly concertrated in
satsfying the interest of the high class in its segment. This implies that it has a higher
popularity among the premium class.
In USA as per the strategy of Rolex they sponsor sports like Golf, tennis and
equestrian. This has made the brand very popular among the sports entusisats in USA.

17
PROJECT MANAGEMENT FOR ROLEX SA
Brand endorsements by the hoolywood actors in US has made Rolex symbol of style
statement (Monga and John 2010, p80).
The cost focus- The watches of the brand are trendier and stylish much more than the
competitors, they do not compromise on the quality and there for the cost of manufacturing of
the watches are high keeping in mind the premium class customers who are not price
sensitive.(Paul and Fosher 2003, p.99)
3.0 Global Challenges
For Q2 the various challenges the company need to consider when trading
across borders (1600 words)
3.1 Considerations for international market
In relation to our areas of study, that is to say US and China, there are many
factors that affect the operations of Rolex. This begins right from the company sales
and profits, prestige and seasonal fluctuation stabilization. A company’s decision on
these factors has a direct influence in the format of operation of any firm in the
international market. Among others, the company should therefore consider; well-
defined business plans and establishment in the respective markets. Rolex as a
company, should have specific goals and objectives that it intends to achieve as a
result of operating on selected countries in relation to its current status and setting the
terms of measurement of the firm’s success (Hetrick, and Martin 2006)
As the company trades across borders, it should consider dealing in specific
model/ brand of its product that favour the tastes and preference of particular trading
country it, it should consider the primary demographic information of Myanmar.. As
explained before, different countries have divergent customs and cultural differences
which results into different tastes and preferences. For the company to compete

18
PROJECT MANAGEMENT FOR ROLEX SA
favourably in particular countries, they should consider the demographic information
accordingly (Lehu 2007).
Regarding trading across borders, effective advertisement should also be
considered in all media and press, and this will help the company to penetrate the
market and ensure strict competition with their rivals (Frazer et al 2007, p.1040).
In addition, transportation and distribution is a major considerable factor for
the company if it will involve in the market, the method, time, quality of distribution
will be essential for the penetration of the market across borders, moreover, the
company should also establish a good brand of products that will always favour their
customers. The company should also soloist ambassadors and agents across the
boarders who will help in creating market and public awareness about the company
across the respective countries. Ambassadors are hardly paid but they deliver a good
job especially regarding advertisement (Sengupta Dahl and Gorn 2002, p.69).
3.2 Why do they need to consider this?
Failure to consider the above factors, the firm is likely fail in its respective
countries of operation. Given the current stiff completion in the in the US and china,
the company needs to consider the above factors to preclude fraudulent trading. This
is where the company business is carried out with the intent to defraud creditors or for
any other fraudulent purposes. In this instance, the company may lift the veil and the
person doing this may be liable personally under the courts of law (2011, p.200). The
above factors will also prevent infringement of employees and people’s rights by the
directors through evading taxes which would help the company to advance on their
personal interest (Baek Kim and Yu, 2010, p.662).

19
PROJECT MANAGEMENT FOR ROLEX SA
Managing
Director
The above factors should also be considered to avoid weakness and decline of
the company in its both sales and efficiency.
3.3 How does the company deal with different cultures?
As explained earlier, Rolex Company operates in different countries and deals with
various people, religions, races, communities, and cultures. In other words, there are cultural
differences among US, china, and Myanmar. With this regard, Rolex studies points of
interests of people in specific countries and used it for its advertisements. For example, the
company signs deal with celebrities especially in the field of advertisement where they
always make several adverts for the company, for example, golf expert Tiger Woods, and top
model Cindy Crawford, all of the United States. In this case, a celebrity is a usually an
attractive super star, and the customers will easily recognize the message brought to them as
well as the outfit. (Crane and Matten 2016)
3.4 Does it standardize/ adapt its products/ services/
As discovered earlier, the company specific target is the premium class who
usually demand for superiority and fame. Dealing in such a target market demands
that the company adopts specific form of standardization. No shop or boutique is
mandated to sell Rolex products unless verified. The company also keeps brand prices
high to maintain the reputation and prestigious name in the market (Christopher 2007)
3.5 Organizational structure

20
PROJECT MANAGEMENT FOR ROLEX SA
Organizational Chart: Christopher 2007
Rolex has many offices that are operating in different countries. However, the description of
the organizational structure is simple an overview of some of the few that adopt this format.
Other offices may have a different order of operation. The president/ CEO are at the top most
rank in leadership and the arrangement is logically organised up to the usual employees.
3.6 CAGE framework
(The importance of cultural, administrative, geographical and economic, distance)
 Cultural distance
According to cage framework, the company has to consider the differences in
ethnicity among the different countries in which it is trading its product in for example in this
case, US, china and Myanmar. The differences in social network, norms, values and
disposition have an influence in the pattern of products purchased. The Swiss watch brands

21
PROJECT MANAGEMENT FOR ROLEX SA
more preferred in the US than china, especially Rolex. This has caused the company into
taking demographic research with the intension of capturing the different markets. In USA,
the brand symbolizes style for the affluent class because of the endorsements done by
Hollywood celebrities. Every one who can afford to buy the watch buys it. In China, people
are a bit conservative also sensitive towards price therefore the affluent class mostly prefers
the band. (Nandan 2005, p.270).
 Administrative distance
In the cage framework, colonial ties, level of political ties, differences in currency,
and differences in legal systems are all factors that influence a company’s viability to go
international. Rolex has taken a considerable effort in exploiting the existing relationship
among the countries. As from the introduction, the company is based in Switzerland but has
plants in all the three countries of focus and beyond. This demonstrates Rolex’s extensive
internationalization. As of now, the political relation of Switzerland with US and China is
good therefore; the healthy trade relation with these countries encourages the company to
start business in these countries. (Motta and Barbosa 2013, p.34)
 Geographical distance
This focuses on the availability of land, the physical distance between the home
country and the country where the company is planning to establish its business in the global
market. Climatic condition of the country is also a factor. Looking at the composition of
Rolex trading patterns, it has taken emphasis and consideration of the geographical distance
by establishing affiliate firms in different countries like, USA and China among others. The
geographical distance of both China and USA makes the brand appropriate for Rolex to set
up their business in USA and China. (Okonkwo 2009, p.287).
 Economic distance

22
PROJECT MANAGEMENT FOR ROLEX SA
The economic distance according to cage framework is the difference in the
distribution of income, the consumption pattern, and the distribution of income in a given
country. Rolex has developed strategic establish in countries that provide the highest
percentage of its products, as seen earlier, the focus countries of US and china are amongst.
Some of the examples can be seen in London, china, France and other countries. This is an
indication that the company is targeting countries that have a high economic distance. China
is a big and growing economy that makes it the first choice for the big brands to start their
business in the country. Rolex was the pioneer company in this regard. The average income
of the US citizens is very high, their living standard is also high therefore the upper middle
class also prefers Rolex. (Osterwalder and Pigneur 2002)
3.7 The future prospects of Rolex SA Company
In order to create a forecast, there is need for analysis and evaluation of the current
situation in relation to the past. This will help in drawing relevant recommendations and
conclusion. However, this requires a a strategic theory to determine the situation during the
analysis. Therefore in this case, Ansof theory will be used for purposes of analysis (Raggio
and Leone 2007., p.399)
3.8 Ansoff matrix
Ansoff matrix is a theory that can be used in the implementation and execution of
plans and strategies recommended by senior marketing analysts. The matrix is composed of
for sections, i.e. market penetration, market development, product development and
diversification.
Market
penetration
Market
development
market existing
ket

23
PROJECT MANAGEMENT FOR ROLEX SA
Musetescu and Chira 2015
Market penetration this refers to a form of growth strategy where a company
increases its sales of the available products in the already existing market. As analysed
earlier, Rolex has put up several strategies of improving its market share for example, over
the years, the company has been the official sponsors of motor racing competitions in china,
US open and many others (Rahemtulla, 2012). In USA and China, the company gives
discount on the old watches so that they can apply penetration strategy and enter the market
of people who are not premium class but can buy the watches of Rolex when given on
discount like the upper middle class. These are one of the strategies the uses in order to
improve on its market share. Rolex also provide a high quality customer support to the client
to improve on satisfaction and customer loyalty. As far as market penetration is concerned,
the company is working extensively to increase its market share (Osterwalder and Pigneur
2002)
Market development this is a firm’s attempt to expand and widen its area of
operation or the geographical coverage for example Rolex has established itself in a series of
countries mainly which provide high market for its goods. It has the 2nd best established firm
in US due to the high demand for its products which similarly applies to china. However, as
explained earlier, the company has a growing market in Myanmar and already has branded
Diversificatio
n
Product
development
Existing products new products
N
m

24
PROJECT MANAGEMENT FOR ROLEX SA
shops I the country of Myanmar which all imply the development of new markets by the
company. (Baek Kim and Yu, 2010, p.662).
Product development; this is an action by the company to develop/ invent new
products for the existing market. A company can achieve such a goal through the invention of
new technology through massive research investment, joint development of two or more
different bodies. As for Rolex, the company has over the years produced a variety of new
brands in accordance to the target markets. For example, the company follows a market
segment that is in line with the country of operation through its innovative technology in
order to increase on its revenue in the respective countries of china and US. They have
extended their product line by introducing another watch Tudor Marques which is
manufactured and marketed by Rolex.
Diversification; is a form of growth strategy adopted by a company where by it
introduces new product offerings in a new market. In other words, the company introduces a
new product in a market that did not exist before. This is one of the most risky strategies and
Rolex as a company, has to a greater extend, not adopted this form of promotional strategy.
From the analysis based on the theory of Asoff matrix, there is a better developmental
prospect of the company. However, the company need to diversify the market target to
improve on its sales and revenue. Due to the stiff competition, the clients take advantage of
buying other brands from fairly cheap products of high quality (Green and Smith 2002,
p.100)
Conclusion
It can be concluded that Rolex has successfully presented it has a symbol of style in
China and USA. The brand’s association with the famous sports person and celebrities have
made it popular among the people who can afford to buy the brand and in China the rich and

25
PROJECT MANAGEMENT FOR ROLEX SA
premium class prefer it mostly because of conservative and price sensitive nature of the
people. The brand has been the pioneer brand in China helping it to gain competieve
advantage on the other swiss watch brands. In general, the rich people prefer people swiss
watches and Rolex has successfully created a brand image and good will in the luxury watch
industry.

26
PROJECT MANAGEMENT FOR ROLEX SA
References
Baek, T.H., Kim, J. and Yu, J.H., 2010. The differential roles of brand credibility and brand
prestige in consumer brand choice. Psychology & Marketing, 27(7), pp.662-678.
Berry, L.L., Seiders, K. and Hergenroeder, A.C., 2006. Regaining the Health of a Nation::
What Business can do about Obesity. Organizational Dynamics, 35(4), pp.341-356.
Berthon, P., Holbrook, M.B. and Hulbert, J.M., 2002. Understanding and managing the brand
space. MIT Sloan Management Review, 44(2), pp.49-54.
Bian, X. and Moutinho, L., 2011. The role of brand image, product involvement, and
knowledge in explaining consumer purchase behaviour of counterfeits: Direct and indirect
effects. European Journal of Marketing, 45(1/2), pp.191-216.
Bocken, N.M.P., Short, S.W., Rana, P. and Evans, S., 2014. A literature and practice review
to develop sustainable business model archetypes. Journal of cleaner production, 65, pp.42-
56.
Boyer, K. and Verma, R., 2009. Operations and supply chain management for the 21st
century. Nelson Education.
Christopher, W.F., 2007. Holistic management: managing what matters for company
success (Vol. 46). John Wiley & Sons.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
D’arpizio, C., Levato, F., Zito, D. and de Montgolfier, J., 2015. Luxury goods worldwide
market study. Bain & Company.

27
PROJECT MANAGEMENT FOR ROLEX SA
da Silva Lopes, T., 2015. A Business History of the Swatch Group: The Rebirth of Swiss
Watchmaking and the Globalization of the Luxury Industry. ByPierre-YvesDonzé.
Basingstoke, UK: Palgrave, 2014. xiii+ 152 pp. Figures, tables, notes, index. Cloth, $91.89.
ISBN: 978-1-137-38906-0. Business History Review, 89(2), pp.367-368.
Deschamps, J.P. and Nelson, B., 2014. Innovation governance: how top management
organizes and mobilizes for innovation. management, 42, p.3.
Frazer, L., Merrilees, B. and Wright, O., 2007. Power and control in the franchise network:
an investigation of ex-franchisees and brand piracy. Journal of Marketing
Management, 23(9-10), pp.1037-1054.
Green, R.T. and Smith, T., 2002. Countering brand counterfeiters. Journal of international
Marketing, 10(4), pp.89-106.
Harris, T., Holmes-Tagchungdarpa, A., Sharma, J. and Viehbeck, M., 2016. Global
Encounters, Local Places: Connected Histories of Darjeeling, Kalimpong, and the Himalayas
—An Introduction. Transcultural Studies, (1), pp.43-53.
Hesterly, W. and Barney, J., 2010. Strategic management and competitive advantage.
Pearson, ed., Pearson Prentice-Hall.
Hetrick, S. and Martin, G., 2006. Corporate reputations, branding and people management.
Routledge.
Keller, G.F., 2009. The influence of military strategies on business planning. International
Journal of Business and Management, 3(5), p.129.
Lehu, J.M., 2007. Branded entertainment: Product placement & brand strategy in the
entertainment business. Kogan Page Publishers.
Lu, P. X. (2011). Elite China: luxury consumer behavior in China. John Wiley & Sons.

28
PROJECT MANAGEMENT FOR ROLEX SA
Lye, A., Venkateswarlu, P. and Barrett, J., 2001. Brand extensions: Prestige brand
effects. Australasian Marketing Journal (AMJ), 9(2), pp.53-65.
McGregor, J., & Studwell, J. John Kurth Asian Studies Paper.
Monga, A.B. and John, D.R., 2010. What makes brands elastic? The influence of brand
concept and styles of thinking on brand extension evaluation. Journal of Marketing, 74(3),
pp.80-92.
Motta, J. and Barbosa, M., 2013. Selling Luxury Wrist Watches Online. A Content Analysis
of Web Sites. Studia Ekonomiczne, 150, pp.34-46.
Musetescu, A. and Chira, R., 2015. How to create a strong brand. Knowledge Horizons.
Economics, 7(2), p.119.
Nagasawa, S.Y. and Sugimoto, K., 2010, March. Chanel's Devotion and Product
Development as a Luxury Brand: Taking R&D and product development of its watch
business as an example. In Proceedings of the Kansei Engineering and Emotion Research
Internal Conference (pp. 1293-1301).
Nandan, S., 2005. An exploration of the brand identity–brand image linkage: A
communications perspective. Journal of Brand Management, 12(4), pp.264-278.
O’cass, A. and Frost, H., 2002. Status brands: examining the effects of non-product-related
brand associations on status and conspicuous consumption. Journal of product & brand
management, 11(2), pp.67-88.
Okonkwo, U., 2009. The luxury brand strategy challenge. Journal of brand
management, 16(5-6), pp.287-289.
Osterwalder, A. and Pigneur, Y., 2002, October. Business models and their elements.
In Position paper for the international workshop on business models, Lausanne, Switzerland.

29
PROJECT MANAGEMENT FOR ROLEX SA
Osterwalder, A. and Pigneur, Y., 2003, September. Modeling value propositions in e-
Business. In Proceedings of the 5th international conference on Electronic commerce (pp.
429-436). ACM.
Park, C.W., MacInnis, D.J. and Priester, J.R., 2007. Brand attachment and management of a
strategic brand exemplar.
Paul Jaworski, S. and Fosher, D., 2003. National brand identity & its effect on corporate
brands: The national brand effect (NBE). Multinational Business Review, 11(2), pp.99-113.
Priede, J., 2012. Implementation of quality management system ISO 9001 in the world and its
strategic necessity. Procedia-Social and Behavioral Sciences, 58, pp.1466-1475.
Raggio, R.D. and Leone, R.P., 2007. The theoretical separation of brand equity and brand
value: Managerial implications for strategic planning. Journal of Brand Management, 14(5),
pp.380-395.
Rahemtulla, K., 2012. Where in the World Should I Invest: An Insider's Guide to Making
Money Around the Globe (Vol. 69). John Wiley & Sons.
Rahemtulla, K., 2012. Where in the World Should I Invest: An Insider's Guide to Making
Money Around the Globe (Vol. 69). John Wiley & Sons.
Razeghi, Y., Roosta, A., Alemtabriz, A. and Gharache, M., 2014. The Role of Corporate
Brand in the Entrepreneurial SMEs Total Brand. International Business and
Management, 8(2), pp.120-130.
Reyneke, M., 2011. In the lap of luxury: Consumer conversation concerning online
advertisements of luxury brands. South African Journal of Business Management, 42(2),
pp.27-34.

30
PROJECT MANAGEMENT FOR ROLEX SA
Ritter, M., 2003. The use of balanced scorecards in the strategic management of corporate
communication. Corporate Communications: An International Journal, 8(1), pp.44-59.
Schluep Campo, I. and Aerni, P., 2016. When corporatism leads to corporate governance
failure: the case of the Swiss watch industry.
Sengupta, J., Dahl, D.W. and Gorn, G.J., 2002. Misrepresentation in the consumer
context. Journal of Consumer Psychology, 12(2), pp.69-79.
Slywotzky, A.J. and Morrison, D.J., 2000. Pattern thinking: a strategic shortcut. Strategy &
Leadership, 28(1), pp.12-17.
Stompff, G., 2003. The forgotten bond: Brand identity and product design. Design
Management Review, 14(1), pp.26-32.
Tang, Y.C., Liou, F.M. and Peng, S.Y., 2008. B2B brand extension to the B2C market—The
case of the ICT industry in Taiwan. Journal of Brand Management, 15(6), pp.399-411.
Thorbjørnsen, H., 2005. Brand extensions: brand concept congruency and feedback effects
revisited. Journal of Product & Brand Management, 14(4), pp.250-257.
Torelli, C.J., Monga, A.B. and Kaikati, A.M., 2011. Doing poorly by doing good: Corporate
social responsibility and brand concepts. Journal of Consumer Research, 38(5), pp.948-963.
Vasconcellos e Sá, J.A., Olão, F. and Pereira, M., 2011. From Levitt to the global age: one
more time, how do we define our business?. Management Decision, 49(1), pp.99-115.
Vigneron, F. and Johnson, L.W., 2004. Measuring perceptions of brand luxury. The Journal
of Brand Management, 11(6), pp.484-506.
Zednik, A. and Strebinger, A., 2008. Brand management models of major consulting firms,
advertising agencies and market research companies: a categorisation and positioning

31
PROJECT MANAGEMENT FOR ROLEX SA
analysis of models offered in Germany, Switzerland and Austria. Journal of Brand
Management, 15(5), pp.301-311.