Atsushi’s blog post on Swatch unique disruptive innovation reminds me to the 14th Lecture where we discussed about Innovation and Entrepreneurship. His post immediately drew my attention where he explained how Swatch was competing with Seiko, a Japanese watch maker. Swatch has successfully create a business which target uncultivated spot in the market through its innovative and fresh new image product. Today we can see how Swatch has been very popular and dominant in the market,even more than Seiko.
As Atsushi mentions “The disruptive innovation does not have to be from a entirely competitor, and that the old industry leader can be disruptor through a change in strategies”, I see how Seiko has actually contributed to Swatch success. Without the competition that they have, Swatch would not be able to understand what the market needs at that time after war. Swatch then see and seize the opportunity to create a product which have a contemporary, fashionable style and also,which is cheap to make, priced at the low-end rather than compete in the range between premium and luxury that Swiss watches more comfortably occupied. This is one the reason why Swatch is distinguished between other more prestigious Swiss-Swatch maker.
This post has effectively analyze how Swatch’s disruptive innovation has contributed to the long-run business’ successes as well as its position facing the competition with the new released Apple watch, iWatch. I also remember in Lecture 18th where Amielle Lake made the whole class repeat her sentence “My greed is bigger than my pride”.Swatch has decisively change his product and business type and ended up being one of the most succesful watch company in the world.
Extra source: http://magazine.wsj.com/features/behind-the-brand/time-bandit/