Seiko Watch Corporation: Moving Upmarket

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Seiko Watch Corporation: Moving Upmarket

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Publication Date:
June 27, 2007

Industry:
Retail & Consumer Goods

Source:
University of Hong Kong

Founded in 1881, Seiko gained prominence for introducing the world’s first quartz watch in 1969 and is often associated with the “quartz revolution” of the 1970s that threatened to destroy the Swiss watchmaking industry. Competition from inexpensive Chinese watch producers, a resurgent Swiss watch industry, domestic rivals, and a profusion of new fashion brands have led the company to reconsider its sales-oriented strategy of offering numerous products at various price points. Having become nearly obsolete in the face of quartz technology, the mechanical watch business was thriving once more, as a number of predominantly Swiss firms attracted luxury watch buyers. Since the 1960s, Seiko has produced luxury and complex mechanical watches for the domestic market under the brands “Grand Seiko” and “Credor.” In 2003, Shinji Hattori, a great grandson of Seiko’s founder became Seiko Watch Company’s president and CEO and felt that Seiko should raise its perceived image outside Japan. In management’s view, Seiko could claim distinction as the only “mechatronic manufacturer” in the world–a vertically integrated watchmaker that excelled in both mechanical watchmaking and micro-electronics. The launch of an innovative new watch movement–the Spring Drive–presented an opportunity for Seiko to make a timely foray into high-price segments in the international watch market. Examines the legacy of Seiko’s watch business and provides a basic overview of the world watch industry. Considers the manner in which watches have evolved as a product category, and how a company like Seiko has attempted to reconcile its competitive advantage with its brand positioning in a highly crowded market.

Copyright © 2021 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

Seiko Watch Corporation: Moving Upmarket

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