Strategic Management Case Study: Swatch's Business Level Strategy

This case study examines Swatch's business strategy, focusing on its differentiation strategy and the factors contributing to its long-term success. The analysis begins by identifying the business level strategy adopted by ETA, the firm behind Swatch, which is primarily a differentiation strategy aimed at offering unique and innovative designs. The study explores how Swatch maintained its market position and profitability while many competitors struggled. It highlights the importance of innovative product offerings, effective management, and targeting specific market segments. The case also touches upon the roles of key figures such as Dr. Ernst Thomke and Nicolas Hayek in shaping Swatch's strategic direction. Overall, the assignment provides insights into the challenges and strategies involved in achieving and sustaining competitive advantage in the watch industry.

Strategic Management
SWATCH CASE STUDY

Table of Contents
MAIN BODY...................................................................................................................................1
1. What business level strategy does ETA adopt with Swatch....................................................1
2. Why was Swatch able to maintain its success over a period of time when many of its
competitors went out of business.................................................................................................1

MAIN BODY
1. What business level strategy does ETA adopt with Swatch
ETA have adopted differentiation strategy to work with Swatch. In this strategy,
organisation provides unique attributes to offer products to customers when comparing against
competition. In context to ETA, differentiation strategy was adopted as to offer innovate designs
that are unique and different from that of other entities offering similar products. Within the
business level strategy, managers of ETA have cut down layers of management as well as
encourages more innovative culture. Moreover, to carry out operations with Swatch, the strategy
helped ETA to improve relationship with professionals of the entity and devise specific position
in the marketplace. Differentiation strategy is all about making product or services that really
stand out from crowd and solves issues that others do not have done.
2. Why was Swatch able to maintain its success over a period of time when many of its
competitors went out of business
Swatch was able to maintain its success in the market at the time when others companies
went out of business as it have developed its strategies that have been benefiting to customers
and business since its establishment. The entity was desperate for innovative offerings in
medium to low price range that helped it to retain its customers and generate huge profits.
Moreover, managers of Swatch have avoided middle grounds and devised targets for its team
which aids in maintaining success over longer time period when its competitors were facing
losses in business.
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