Strategic Analysis of M&s

1.0 INDUSTRY OVERVIEW

Worldwide luxury watch market is completely dominated by Switzerland which contributes almost 100 percent of the market value. Swiss made timepieces are to be found in all the countries of the globe. And, what is no less surprising, to suit all pockets, or almost so: from quartz fashion watches for a modest price to mechanical masterpieces, made of gold and decorated with precious stones, costing several million francs. It is this wide variety and its worldwide vocation which together have ensured the survival of the industry over the course of centuries.

It is traditionally considered a male domain; however women are also driving up sales now. Luxury watch makers are trying their best to design the female equivalent of their most popular watch models. Another notable trend is the integration of new technology and the use of unconventional materials in luxury watches. Also all major brands are raising their price level by repositioning of their products.

Markets and Competition

While the Swiss watch industry is present all over the world (it exports nearly 95% of its production), it does not carry equal weight everywhere.

Asia and Oceania take 44% of Swiss watch exports in value, Europe 34%, Americas 21% and Africa 1% and the top fifteen countries represent over 82 % of these exports.

With their worldwide reputation for quality and styling, Swiss watches are not however the only ones to compete for the favours of customers.