We know that our recent economy had a tough few years, and that we are slowly recovering…but one well known Swiss Company Victorinox AG had different plans. “Carl Elsener Jr., Victorinox’s approachable chief executive officer, proudly proclaims that his company has never outsourced production or axed jobs due to recession.” Victorinox AG is such a sucessful company that “Sales are roughly $200-million a year, 90 per cent of its products are exported”. Even with that many sales, employes enjoy working there because they still get to enjoy 1.5 hour breaks every lunch. Of course Victorinox AG also has to deal with threats, such as cheap knock offs from China and Japan, as well as dealing with the new airport policy after September 11th, 2001 where no sharp objects were allowed in the plane. But according to Porters 5 forces, Victorinox AG has nothing to fear! They have great supplier power, maybe even a little bit of a monopoly, since no other company has produced such a high quality product. The threat of the substitues are small, since most of the knock of knifes are “too stiff to close or impossible to open”. They have great buyer power internationally to large companies such as airports and even small local stores, and they have strong durable entry barriers, so some cant just come in and copy their product! Being Swiss, this once again makes me extremely proud of my little home country!
Sources: (also for all quotes):
Quotes and Article: http://www.theglobeandmail.com/report-on-business/economy/growth/switzerland-blazes-innovation-trail/article1750626/
Porters 5: http://www.mindtools.com/pages/article/newTMC_08.ht