Comprehensive Report: Human Resource Management at Swarovski

This report provides a comprehensive analysis of Swarovski, an Austrian organization known for its crystal products. It begins with a descriptive analysis, outlining the company's organizational structure, mission, vision, and business functions, including management, operations, HR, marketing, and financial performance. The report delves into the internal environment by examining the company's strengths, such as its global presence and financial stability, and weaknesses, like market competition. Furthermore, the report assesses the external environment, identifying opportunities like brand collaborations and threats like market competition. The report also examines the company's target market, marketing strategies, and significant issues, such as the need for enhanced product awareness and a broader customer base. The analysis includes an examination of the company's innovation and collaborative strategies. In conclusion, the report provides a detailed overview of Swarovski's operational environment and future prospects.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Table of Contents
Descriptive analysis of the organization........................................................................2
Internal environment analysis (SW)...............................................................................5
External environment analysis (OT)..............................................................................6
Significant issues that have been identified...................................................................9
Conclusion....................................................................................................................11
References....................................................................................................................13

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Descriptive analysis of the organization
Swarovski is an Austrian organization and a producer of lead glass that has its
headquarters in Wattens, Austria. The organization is thereby split into the three major
industry areas that include, the Swarovski Crystal Business, that primarily produces lead
glass based jewellery and accessories as well, Swarovski Optik, that produces optical
instruments like telescopes, telescopic sights for rifles and binoculars and Tyrolit, that is
manufacturer of different tools that can be used for sawing, grinding, dressing and drilling
(Swarovski.com. 2019). Swarovski Crystal is currently one of the largest grossing business
units that has been able to develop a global reach of around 2800 stores in 170 countries more
than 27,000 employees and revenue of 2.6 Billion Euros had been gained in the year 2016.
Daniel Swarovski was born in the northern part of Bohemia that is 20 km away from current
border that has been formed with Poland (Swarovski.com. 2019).
Swarovski International Holding AG operates as the holding organization and the
company mainly manufactures and markets the synthetic jewellery stones, optical products,
grinding wheels and abrasives. The organization is known worldwide for translating latest
trends fashionably into the product lines that are mainly faceted by watches, crystal jewellery,
giftware, home décor, collectibles and accessories (Swarovski.com. 2019). Swarovski has
been working on a global basis in order to connect the innovative products with different
business organizations and the imaginative creators across 170 countries in the world
(Aguinis, Edwards & Bradley, 2017). The illumination of brilliant vision is possible with the
help of finest precision-cut crystals that are manufactured by the organization. Swarovski
crystals are considered to be a brilliant inspiration behind the inspirational fashion, art, design
and architecture. Swarovski crystals are developed by the organization for the creative
business operations that are conducted in diverse parts of the world. The regional offices of

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the company that are present in different areas are able to provide major levels of assistance
to the consumers in order to satisfy their requirements (Cândido & Santos, 2015).
The mission statement of Swarovski is to add sparkles to the everyday life of the
customers with the help of high value based products and services that have the ability to
exceed the desires of the customers. The statement that has been developed by the company
is as follows,
“We inspire our colleagues with innovation and reward their achievements while
striving to expand our market leadership.
We assume accountability for our actions as a responsible corporate citizen, and make
decisions that positively influence our world (Swarovski.com. 2019).”
The major vision that has been developed by Swarovski is based on the approach that
has been implemented by the company in order to become a global brand that is able to drive
positive change and also ensures that the company is able to continue its business operations
for many generations. Swarovski also provides details based in the developing nature of the
strategic approach to sustainability that represents beginning of the new phase in the
sustainability journey (Swarovski.com. 2019).
The goals that have been set by the Swarovski group are,
“To protect the people and the natural environment touched by our supply chain
To inspire and enable our designers, collaborators and customers to be more
sustainable
To work towards sustainable production and consumption (Swarovski.com. 2019).”

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The target market that has been captured by Swarovski is huge and the crystals have
also become a major part of different celebrations. The organization is aiming at developing
its base in the Asian regions and the countries like, India. The business structure and
functions of Swarovski is developed in such a way that is helpful for the firm to maintain its
profitability levels (Swarovski.com. 2019).
The marketing and business strategy of Swarovski has been a secret behind the
success that has been gained by the organization in diverse parts of the world. The different
aspects that are related to the success of Swarovski are as follows,
Innovation - Innovation has been the most significant part of the successful
operations of Swarovski. The uniqueness of all items is considered to be a major reason
related to the growth in the market developed by the Swarovski. The company has innovated
the products in the last few years of its operations. Swarovski had started as a crystal
producer and produced miniatures and glass sculptures like swans and horses (Dembek,
Singh & Bhakoo, 2016). It was however able to become a global name with luxury based
products that have been offered to be the customers in various countries. The expansion of
business of Swarovski into the couture and jewellery field has led to development of unique
marketing tactics. The crystal items had a major appeal towards the middle-aged individuals
and the brand has been designing expensive line of the jewellery based items that include,
pendants, rings, charms, pens, smartphone cases (Dibrell, Fairclough & Davis, 2015).
Collaboration – Swarovski had made different tie-ups and partnerships with the
organizations like, Christian Dior, Chanel and Versace in order to become identical with the
luxury based items. The company on the other hand collaborated with the emerging designers
like, Christopher Kane, Jason Wu and Rodarte which had exposed Swarovski to fashion
industry and has also enabled its growth (Engert, Rauter & Baumgartner, 2016). The brand

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has also partnered with the high profile Australian model Miranda Kerr. The collaboration of
Swarovski with model Miranda Kerr was mainly based on different characteristics that the
model possessed including, feminine, successful, beautiful, modern and fashionable. The
move has been quite successful, for the firm in order to maintain its operations in the market
in a sustainable way (Felix, Rauschnabel & Hinsch, 2017).
The consumer goods business is responsible for the major contribution that is
provided to the revenues of New Zealand. The brilliant and world class organizations that
operate in the country are able to maintain their competitive edge with the help of fresh ideas
and innovative products as well (Dembek, Singh & Bhakoo, 2016). The consumer goods
industry is able to touch the lives of people on a regular basis and it comprises of some of the
most iconic brands in the country. The retail academy in Swarovski is able to nurture and
develop more than 12000 employees. The major vision of the firm is to delight the customers
with the help of their products and develop an effective journey of the retail team as well
(Swarovski.com. 2019). Swarovski is able to offer major training and development based
opportunities to the employees with the help of its e-learning programs and the training
academy as well. The training academy is able to play a major role in the proper development
of work process of the employees based on requirements of the organization.
Internal environment analysis (SW)
The internal environment of Swarovski is developed with respect to the strengths that
have been used by the organization and the weaknesses of the company as well. The strengths
that have been gained by the company and are used effectively for the development of
different products are as follows,

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The company has more than 26,000 employees and is present in around 120
countries of the world. The huge presence of the organization has been able to
increase its reach towards the customers.
Swarovski operates more than 1200 stores and around 1000 partnered stores
are operated based on partnerships with the other companies (Forbes.com.
2019).
Swarovski had developed many production locations in the countries like,
Austria, Czech Republic, China, Jordan, India, United States and
Liechtenstein. The production plants have also supported the growth of the
firm and has improved its processes in various countries as well (Fernández-
Olmos & Ramírez-Alesón, 2017).
The financial position of Swarovski and the annual turnover is able to support
the future growth plans of the organization. The development of Swarovski is
mainly based on the methods by which the f can make efrmfective investments
in the development of proper advertisements in order to boost awareness based
on the products. The development of facilities based on financial strength is
considered to be a vital aspect that can help in improvement of the future
operations of Swarovski (Swarovski.com. 2019).
The visibility and presence of Swarovski is quite high due to the marketing
tactics and advertisement approaches that are developed by the firm. The
visibility levels of the company have been able to play a key part in providing
support to the organization so that it is able to maintain the levels of
profitability (Frow et al., 2015).
The weaknesses of Swarovski based on the operations that had been developed in the
industry are as follows,

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The unorganized market sector has been able to play a key part in the
development of competition that is faced by Swarovski in the market. The
market share in this sector is limited and is able to affect the revenues that
have been earned by the company (Frynas & Mellahi, 2015).
Although the levels of visibility of Swarovski are quite high, the organization
further needs to enhance the awareness based on different products in order to
develop a larger customer base. The customer base of the organization is
limited to the premium levels and has an impact on the levels of profitability
that have been earned as well (Groff, Di Pietra & Sitar, 2016).
External environment analysis (OT)
The external environment based factors have an impact on the revenues and
operations of Swarovski. The opportunities and threats that are able to influence the
organization are a part of the external environment. The opportunities that can be used by
Swarovski in the future are as follows,
The opportunity of creating an identity of the brand and also collaborating
with the PR based activities. Collaborations based on PR will be able to
provide growth opportunities to Swarovski. The awareness related to the brand
can also be increased due to relationships developed based on PR (Hamilton &
Webster, 2018).
Creating brand value will be able to increase the sense based on loyalty among
the consumers. The value of the brand can be increased with the help of
growth of a loyal consumer base. The loyal customers will be able to play a
key part in maintaining the brand value and levels of awareness as well (Helfat
& Martin, 2015).

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The communication process that is developed by Swarovski is considered to
be a vital aspect that has an influence on the methods by which the
organization can communicate with the customers. Proper communication is
able to play a key part in formation of a customer base and understanding their
demands and needs as well. The awareness of the products that are offered by
a premium brand like Swarovski is able to influence the revenue levels and
position of the firm as well (Ismail & Kuivalainen, 2015).
Swarovski can also try to make a huge impact on the market with the support
of production of jewellery that are based on the needs and demands of the
teenagers. The trends that change in the market are considered to be a major
aspect on the development of new types of jewellery that have the ability to
attract various types of customers (Jarzabkowski & Kaplan, 2015).
Swarovski also has a huge opportunity to target the millennials with the help
of diverse products ranges that are provided under its brand. The company has
recently targeted different tourist spots in order to reach a larger group of
customers within short periods of time (Forbes.com. 2019). For example, the
tourists will be able to enjoy their trip by taking a ride in the cable cars that
have special types of lightings that are provided by Swarovski in Switzerland.
The brand will be able to capitalise on spectacular nature of the cable cars as
well (Kaur & Sharma, 2015).
The proper modernisation of stores and products is considered to be an
important opportunity that can be used by Swarovski in order to uphold the
revenues. The firm will be successful in attracting the younger group of
consumers with the support that is provided by the enhancement of the look of
the stores (Leonidou et al., 2017).

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The enhancement of digital presence is considered to be a major aspect that is
related to the improvement of the revenue levels of Swarovski. The brand can
increase the number of collaborations with various digital platforms in order to
maintain the position and also reach the customers faster (Mellahi et al.,
2016). The conversations that can be shared by Swarovski with the customers
will have a major impact on developed relationships and understanding their
needs as well. The access of customers to the crystal universe that has been
created by Swarovski will be increased with the support that is offered by the
digital media based platforms (Martinez et al., 2019).
The resources that are possessed by the country based on financial capabilities
can play a key part in growth of a new direction for Swarovski in order to
enhance the awareness levels. The shopping habits that are developed by the
customers can be tracked by the firm in order to develop the marketing tactics
that will help in attracting them towards the products (Özçelik, 2015).
The threats that are faced by Swarovski in the development of its profitability levels
and operations are as follows,
The cheaper manufacturers who are present in China provide major levels of
competition to Swarovski. The competition levels have a major impact on the
profitability of the organizations. The customers who prefer similar cheaper
products will be attracted towards to the cheaper manufacturers instead of
Swarovski. This will further be able to reduce the profitability levels of the
company as well (Prajogo, 2016).
The changes that are taking place in the trends and new fashions are able to
influence the product base and the levels of profitability as well. The external

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environment based changes have a key influence on the products that are
being offered to the customers (Forbes.com. 2019).
The individuals are not interested to make huge investments in the crystal
stones and this reduces the sales of Swarovski in different countries. The lack
of interest in purchasing high cost based stones is considered to be a
significant aspect that can affect the profits that are gained by the firm
(Rugman & Verbeke, 2017).
A major threat that is faced by Swarovski is that the organization is currently
hiring more part time employees in comparison to the full timers. The part
timers are provided training in the Swarovski Boutique itself (Swarovski.com.
2019.
Significant issues that have been identified
Swarovski has been functioning in the jewellery industry for a long time and has
developed a specific customer base as well. The organization possesses huge financial
capabilities and has made major levels of investments based on methods by which innovative
products can be developed. Swarovski has however started facing some major challenges
related to the operations and sustainability of the revenue levels as well (Wolf & Floyd,
2017). The challenges that are currently being faced by the company in the industry recently
are as follows,
Crystal production based capabilities in different parts of the world have
started eroding and the historical USP has also been reduced in a huge manner.
The issues that are mainly being faced by the company are thereby mainly
related to the lack of proper production facilities in the countries in which it
has a presence (Prajogo, 2016).

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The new competitors who are able to provide lower cost based products have
provided challenges to Swarovski in the ways by which profitability can be
maintained. The premium jewellery sector currently consists of many new
organizations and the products are also priced competitively (Forbes.com.
2019). The competitive pricing of the products has a huge effect on the profit
margins and revenues that are gained by the organization. The global
competitiveness of the company has also been reduced due to presence of high
levels of competition and presence of the new organizations as well
(Jarzabkowski & Kaplan, 2015).
The digital selling channels and platforms have played a key part in offering
the customers with different types of products. Digital platforms have been
able to boost the levels of competition that are faced by a company like
Swarovski that offers premium products (Forbes.com. 2019). This is
considered to be a major challenge for the organization in order to maintain
the profitability levels in the industry. The sales of Swarovski have been
influenced in a negative manner by the increase in digital selling of diverse
products that are able to reach the consumers faster (Engert, Rauter &
Baumgartner, 2016).
The marketplace has started facing changes on a frequent basis and has an
impact on the products which are offered to the consumers. Fast changing
market trends have a huge impact on the ways by which Swarovski can
provide the improved products (Forbes.com. 2019). The trends based on
different products are able to influence the operations and manufacturing
process of Swarovski in a huge manner. The lack of proper production process

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is considered to be a major challenge that will be faced by Swarovski in the
jewellery industry (Felix, Rauschnabel & Hinsch, 2017).
The innovative capabilities that have been implemented by the firm can play a key
part in proper types of products that can be developed and offered to the customers. The
mitigation of risks is possible with the help that is provided by the leadership of the firm and
the financial capabilities as well. The organization has always aimed at maintaining the
tradition based on products that are manufactured (Hamilton & Webster, 2018). The standard
practices which are formed by the company are followed in the factories in diverse parts of
the world. The development of internet shopping facilities will support the organization in
order to improve profitability levels in an effective way. The supportive team of the firm is
considered to be a major resource of Swarovski and the operations that have been developed
in the jewellery industry as well. The issues and challenges that are faced by Swarovski in the
jewellery industry can be mitigated and solved in an effective way with the appropriate usage
of different capabilities of the firm (Forbes.com. 2019).
Conclusion
The report can be finished by stating that a premium organization like Swarovski can
maintain the profit levels and revenues with the support that is offered by the financial
position and capability. The marketing strategy that has been implemented by the company is
considered to be the most important factor that can have an influence on the operating
facilities. The customer base that is developed by the company is also not large as the
products belong to the premium category. The traditions that have been maintained by
Swarovski are able to play a key part in the formation of its stable position in the industry for
a sustainable period of time. The threats and issues that have been faced by the organization
can be reduced with the support that is provided by the financial situation of Swarovski. The

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innovativeness of the organization is also an important aspect of the successful operations of
Swarovski in the jewellery industry.

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