Tissot Watch Company Analysis - Essay Example

Download file to see previous pages... The first and foremost is brand recognition. Tissot relies heavily on different strategies that require lots of investment in advertising to create product value. As Tissot involved well known personalities to promote their products, this acted in their favour create brand recognition in the industry. The consumer base of the company has been strong enough which enabled the organisation to take steps into new products which in turn will attract new customers and cement the consumer base. Marketing and communication sets Tissot stand differently from its competitors. The design of the watches is built in such a way so that it attracts every level of consumers if not income wise but choice wise. Tissot took the step in distributing their products in different markets which not only raised their sells but penetrate other markets and drive out their competitors. The Swiss watch manufacturer has large and highly skilled pool of labor. They are trained for the specific purposes and latest innovations and techniques are injected into the products which affects the sales of the company. The price of the products is set at such a level which attracts targeted customers. The prices are competitive with other competitors in the industry and technological advancement is the factor which differentiates its products from other competitors. A huge product base is also offered for the customers with different price ranges. Luxury watches are defined as those watches which have a factory gate price of over CHF 500, and corresponds to more or less to sale price of over CHF 1500. A Harvard Business School Professor stated a ‘five forces model’ to make an analysis of the watch industry. There is the threat of new entrants which may be able to attract the consumer bases of the already existing players. There is rivalry among the players in terms of pricing, branding and advertisements. The only difference the watch industry has from all other industries is that it is not possible to deliver substitutable products. That is why the other aspects of business are foremost in this industry [Gautschi, 2005, pp. 7-8]. (Gold, Godsey, Cernusca, 2003, p. 9) The key to sustain in the Swiss watch industry is in fulfilling the strategic and operational goals of an organisation. Tissot has been able to capture a consumer base but in order to sustain in the industry the need of the time is inject new technologies and pricing strategies. Injection of new technologies will involve investments and the current needs of the market need to be identified. Once the needs are identified, new products are injected into the market using appropriate process strategies. Tissot should also have adequate back up plans for sudden entry of new competitors into the market. These unexpected moves are required to be handled efficiently. Research and development is one of the key areas which cannot be eliminated from any company in order to sustain in an industry (Adler and Shenhar, 1989, p. 10). Time should be spent on new product innovation and marketing of the products around the globe. Elasticity: One of the important concepts that can influence the pricing strategy is price elasticity of demand which shows the change in the quantity demanded of a certain product due to change in the price of the same product. Tissot will have to ...Download file to see next pagesRead More