The Swatch Group

In: Business and Management

Submitted By ioannouj
Words 9718
Pages 39
9 -5 1 2 -0 5 2
REV: FEBRUARY 10, 2012

ROHIT DESHPANDÉ
KAROL MISZTAL
DANIELA BEYERSDORFER

The Swatch Group
Most people of my age would probably never have bought an Omega. Their father would wear one, and their son would own one. We have therefore lost part of this generation, definitely.
— Stephen Urquhart, President, Omega
In 2006, when I told the press before the Olympic Games in Turin that the objective of Omega is to overtake
Rolex, its natural competitor, people were smiling and saying that Rolex is in a different league, up there. But this positioned Omega, inside and outside, totally.
— Nick Hayek, CEO, Swatch Group
On the afternoon of March 15, 2011, the only day closed for visitors during Baselworld, the major global watch and jewelry trade show held in Basel, Switzerland, Nick Hayek, the CEO of the leading
Swiss watch manufacturer Swatch Group, completed a series of informal meetings with his watchmaking counterparts. After all that had been said behind the glamorously showcased watch collections, Hayek lit a cigar to reflect on the discussions’ impact on his watchmaking empire.
The late Nicolas G. Hayek (hereafter Hayek Sr.), the charismatic founder of the Swatch Group
(and Nick Hayek’s father) who passed away nine months ago, would have applauded the group’s exceptional 2010 results which encouraged the company to set a sales goal of 10 billion Swiss Francs
(CHF) within the next four to five years (see Exhibit 1 for the group’s key financials).1 Given how well the Swatch Group had weathered the recent difficult years for the industry, Hayek was not surprised by the 2010 numbers. He attributed this success partly to the group’s vast range of 19 watch brands serving all consumer segments, and to its solid Swiss industrial base which allowed the group to feed the latest technology into its timepieces.
The company’s results had…...

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