Wrist watches Industry Assignment Example | Topics and Well Written Essays - 2500 words

Wrist watches Industry - Assignment Example Nevertheless, the English and Swiss watchmaker's dominance in the wristwatch industry would have been subjected to various threats due to innovations occurring from the rest of the world. For example, the Swiss watchmakers were repeatedly unable to react properly to these emerging innovations in the technological aspects of wrist watch design. The industry serves as a proof that many watch-making companies across the world would often do the same mistake repeatedly. These companies often were unable to detect the trends and cycles of the changes in watch-making technology in order to get prepared for it. The great examples of these technological changes were the 'Quartz technology' and the 'following shift of emphasis to fashion has had dramatic impacts on the watch industry' (HEGARTY and CORNER, 1996). Japanese watch-making companies were able to grasp the opportunity that the Quartz technology has to offer which made them more dominant than Swiss companies. However, the later emphasis on design and fashion on wristwatches brought back the glory and dominance back to Swiss watch-making companies. The development of Quartz technology made Japanese companies dominant for a while. Japanese companies were so overwhelmed by their successes that they were unable to detect the upcoming trend in wristwatch industry, which is emphasis on fashion and style. These new trend was dominated by the Swiss companies for the next 10 years (HEGARTY and CORNER, 1996)Wristwatch companies, both Swiss and Japanese alike, were unable to respond well to the threats that were coming their way when they were in their dominant position which unable them to understand future needs and preferences of wristwatch buyers. 'The Swiss and English did not recognise the threat that machined watches with interchangeab le parts were to them and they lost large market share in the Nineteenth century. It took almost half of a century for Swiss companies to recover market share up to and during WWII' (HEGARTY and CORNER, 1996). However, Swiss companies' efforts to take back the watch industry proved to be successful at the turn of the 20th century. The introduction of the Dingley Tariff Law enabled companies such as Bulova, Benrus, Gruen, and Longines-Wittnauer to 'assemble watches in the U.S. with Swiss movements'. The Swiss developed more accurate techniques and founded their factories on the knowledge acquired by Mr. 'Favre-Perret's visit to the U.S'. It was the Swiss companies' focused on advancement in mechanical parts and development of 'complications such as calendars, chronographs (stop watches), and self-winding models' that helped them sustained their dominance. On the other hand, Rolex, with the development 'first water resistant watch in the 1920s and the first automatic winder in 1931' contributed to Swiss dominance. Moreover, Swiss watchmakers made smaller wristwatches with more accuracy and reliability. As a result, 80% of worldwide wristwatch market was won back by two Swiss companies by th e conclusion of the Second World War. Even though 'Allied factories' re-focused to wristwatch production after the second world war, Swiss watchmake