Branding Time: Swatch and Global Brand Management

Abstract

Societe Suisse de Microelectronique et d'Horlogerie (SMH) was formed in 1983 by merging the two leading Swiss watch groups, SSIH and ASUAG. SMH and its main brand, Swatch, was the outcome of crisis for the Swiss watch industry. In a few short decades, foreign competitors with superior technology had all but eliminated the Swiss from a global industry that they dominated for centuries. The creation of Swatch is the extraordinary story of how the Swiss re-invented their watch industry. Recognizing the crucial role of brand intangibles to its future success, SMH changed its name to the Swatch Group in 1998. Now in the new millennium the Group needs to chart a strategy to preserve and enhance its stable of global brands. This case study has been reprinted: ICFAI Journal of Brand Management, Vol.2(2), pp.39-54, June 2005. An updated version of this case, under the same title, is available from the European Case Clearing House, Case 307-377-1, 2007. An accompanying teaching note is also available: Teaching Note 307-377-8, 2007.

Keywords: Brands, Swiss watch industry, multinational management

JEL Classification: L68, F23