Seiko Go Upmarket

2242 words 9 pages
* Executive Summary Seiko Watch Corporation and its predecessor had always been innovative in watch technology development and brought many industry firsts to the watch market, and Seiko was very successful before the 1990s. With competitive environment change started in the 1990s, Seiko found it was not in the right segment of the market for growth, this segment is high end watch market. Seiko tried to break into the high end watch segment, but the attempts haven’t been proved successful. Based on detailed analysis of Seiko’s industry environment, competitive arena, and internal issues, conclusion was drawn that Seiko’s past vision, strategy and structure didn’t support its ambition to be an …show more content…

In the meanwhile, Seiko began efforts to setup sub-brand to move up in market. People would not have known ramifications of what they were doing when in process of historical events, but looking back into history, we know today the seed of Seiko dilemma was planted in the 1970s and 1980s under the soil of its success. The third phase – the 1990s was a no name decade for Japanese watch makers including Seiko. Domestic economy was staggering. Watch technology was still in evolution, but there was no break-through invention like quartz could stir up the arena. Low cost economies such as China and Hongkong were arising to take over in mid-priced and low-end watch market. Swiss watch makers firmly seized hold of high-end watch market while fighting back in mid to low end market. Watch Competitors came out from outside of the chronological industry: pocketable digital device made watch no longer a functional necessity for timekeeping purpose. Seiko sales declined in the decade. The fourth phase – after the millennium, prevalence of cell phones further deteriorated watches’ position as personal primary timekeeping accessory. People bought watches not for time telling but for social status and prestige distinguishing. Global demand for luxury goods grew, and high-end segment of the watch market was emerging as the most profitable and the fastest growing