Reviews the efforts of Swatch to reposition itself in the increasingly competitive global watch industry. Provides extensive information on the history and structure of the global watch industry and highlights the shrinking time horizons decision makers face in formulating strategy and in responding to changes in the industry. In particular, the case discusses how technology and globalization have changed industry dynamics and have caused companies to reassess their sources of competitive advantage. Like other companies, Swatch faces the difficult task of deciding whether to emphasize product breadth or focus on a few key global brands. It also must decide whether to shift manufacturing away from Switzerland to lower cost countries like India.
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