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I have chosen to investigate the Swiss watch market, an industry I have been involved within for the last decade.
This luxury sector has uniquely marketed itself as acceptable indulgence. Sinclair (2015) expresses that this ability to avoid criticisms for the ostentatious nature is due to the traditional background of the industry. Brands also encouraged through advertising, such as Patek Philippes slogan You never own a Patek Philippe, you merely look after it for the next generation (Leagas Delaney, 2020); which looks to express longevity, sustainability and heritage, rather than traditional consumerism.
The perception of exceptional brands such as Rolex and Patek Philippe is as secure investments with the brands’ products increasing in value and sales through the finical downturn in 2008 (Companies House, 2020). Switzerland and their watch industry has worked hard at their global approaches and marketing mix to limit effects from wider environment fluctuations
Yet, the ability of these Swiss luxury brands to avoid negative perception and economic factors does not shield it entirely from the global environment. The PESTLE analysis below shows examples of specific global factors that are currently influence Swiss watch manufacturers.
Even just a few days ago, the UK government announced new restrictions for tax-free shopping from visitors outside of the EU, likely to reduce tourism purchases within the market (HM Treasury, 2020).
With the Political environment in turmoil, with trade wars and challenging negotiations continually creating rapid changes to business interaction, how do MNEs continue to ensure stable international growth and development