The comeback of the Swiss watch industry on the world market: a business history of the Swatch Group (1983-2010)

The objective of this paper is to contribute to a better understanding of the comeback of the Swiss watch industry on the world market since the end of the 1980s. It focuses on the Swatch Group (SG), currently the world’s biggest watch company. In 1983, the merger of the largest watch group (SSIH) and of the trust controlling the production of parts and movements of watches (ASUAG) into SG was the main measure taken to overcome the Japanese competition. Managed since 1986 by Nicolas G. Hayek (1928-2010), SG experienced a high growth and recovered its competitiveness on the world market, becoming a driving force for the entire Swiss watch industry. This success is traditionally explained by the firm itself and by scholars as the result of the launch of a new product (Swatch, a cheap plastic quartz watch first marketed in 1983) and the persistence of an old technical culture in Switzerland which enabled this rebirth. This paper, based on SG annual reports, focuses on the strategy adopted by SG since 1983. It shows that, rather than product innovation (Swatch), it was the rationalization and globalization of the production system (concentration of strategic parts’ production in Switzerland; transfer of production facilities in Asia), together with a new marketing strategy (brand segmentation, distribution and retailing facilities, communication, etc.) which were the two main sources of the comeback of the Swiss watch industry on the world market. While Japanese still attach great attention to product innovation, SG largely established its competitiveness on non-technological innovation.Watch Industry; Switzerland; Swatch Group; Luxury Goods; Marketing Strategy

Technological advantage and market loss : Siemens and the X-ray machine business in Japan (1900-1960)

This paper focuses on the involvement of Siemens on the market for radiology equipment in Japan between 1900 and 1960 from a business history perspective. It explores why the German multinational was unable to keep its dominant position on the Japanese market in the interwar years, despite its technological competitiveness. In particular, it examines the strategic choices made by the firm (export, licensing, direct investment) in relation to the changing economic and technological environment, highlighting the importance, for foreign multinationals, of working together with national trading firms involved in the distribution of drugs and products for doctors, as the Japanese medical market was already well structured when the country opened up to the West. Four phases have been identified. At first, before World War I, German manufacturers of X-ray machines, especially Siemens, enjoyed a virtual monopoly in Japan and favored an export strategy. The political and technological shifts that occurred during the war (interruption of trade with Germany, development of the Coolidge X-ray tube by General Electric) led to a more competitive market in Japan. Siemens reorganized its involvement in this business via a contract signed with a domestic medical goods trade company, Goto Fuundo (1926). Yet this proved insufficient to overcome the competition, and Siemens finally decided to relocate some of its production facilities for X-ray machines in Japan by entering into a joint venture with Goto (1932). Relations between Siemens and Goto were severed by the war, and Goto tried until the 1950s to go it alone in this field but failed due to a lack of organizational capability. As for Siemens, it reverted to its export strategy approach, re-entering the market in the 1950s

The Comeback of the Swiss Watch Industry on the World Market : A Business History of the Swatch Group (1983-2010)

The objective of this paper is to contribute to a better understanding of the comeback of the Swiss watch industry on the world market since the end of the 1980s. It focuses on the Swatch Group (SG), currently the world’s biggest watch company. In 1983, the merger of the largest watch group (SSIH) and of the trust controlling the production of parts and movements of watches (ASUAG) into SG was the main measure taken to overcome the Japanese competition. Managed since 1986 by Nicolas G. Hayek (1928-2010), SG experienced a high growth and recovered its competitiveness on the world market, becoming a driving force for the entire Swiss watch industry. This success is traditionally explained by the firm itself and by scholars as the result of the launch of a new product (Swatch, a cheap plastic quartz watch first marketed in 1983) and the persistence of an old technical culture in Switzerland which enabled this rebirth. This paper, based on SG annual reports, focuses on the strategy adopted by SG since 1983. It shows that, rather than product innovation (Swatch), it was the rationalization and globalization of the production system (concentration of strategic parts’ production in Switzerland; transfer of production facilities in Asia), together with a new marketing strategy (brand segmentation, distribution and retailing facilities, communication, etc.) which were the two main sources of the comeback of the Swiss watch industry on the world market. While Japanese still attach great attention to product innovation, SG largely established its competitiveness on non-technological innovation

Innovation in the global medtech industry:An empirical analysis of patent applications, 1960–2014

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Dealers and the formation of premium brands in the German car industry : Audi AG (1990–2020)

This article discusses how dealers contributed to the formation of premium brands in the German car industry in the 1990s. Using literature on luxury business, it tackles the case of Audi to explore the changing role that dealers have played and their integration into Audi’s brand management strategy when the company became autonomous within the Volkswagen Group. The article demonstrates that dealers were not mere sellers of vehicles but rather places that transmitted experience value to customers. Like mono-brand stores in the luxury industry, Audi dealers were strongly integrated in the firm and physically embodied the brand through a standardized, worldwide architectural model.論

Health Industries in the Twentieth Century. Introduction

This article is the introduction to the special issue' Health Industries in the Twentieth Century'. It offers a broad literature review of scholarly works about the history of health and medicine, and stresses the opportunities for business historians to tackle the field of healthcare

Nestlé Coping with Japanese Nationalism: The establishment and maintenance strategy of a foreign multinational enterprise in Japan, 1913-1945

This paper focuses on the strategy adopted by the MNE Nestlé in Japan between the establishment of a branch at Yokohama in 1913 and the end of World War II. It highlights the difficulties encountered by the firm in its attempts to open up and operate production facilities due to strong opposition from local condensed milk makers, supported by the State. Eventually, in 1934, Nestlé opened a factory by founding an incorporated company, ARKK, all of whose shareholders were Japanese working for Nestlé. Although the war drastically curtailed the activities of both Nestlé Japan and ARKK, the organizational facilities set up during the interwar period provided a springboard for Nestlé's post-war success in Japan