Introduction of Tag Heuer Company

Tag Heuer Company is a Swiss company that is working in the industry of smartwatch manufacturing. The company was established by the Edouard Heuer in 1980. The company is now head quartered in Switzerland.  The report contains information about the current position of the company in the highly competitive market and current threats faced in the targeted market.    

Analysis of Competition of tag Heuer Company

There is more than 104 number of small and large companies working in the smartwatch industry in Switzerland. These companies are also producing and selling relatively same products. In accordance with the market analysis the current market shares of the Rolex are 47%, Breitling 12%, Omega 9% and Tag Heuer 7%. While in accordance with the historical data and sales records of 2014 sales of these companies were Rolex 4500, Omega 2150, and TAG Heuer 770 million. High competitive in the industry, competitors are already established and familiar with the market, customer loyalty, cost disadvantages and limited opportunities available to new entrants are some barriers that prevent the new companies to enter the market [1].   

Differentiation of tag Heuer Company

Differentiation is a key to develop competitive advantage in the market in order to maximize market shares. Tag Heuer is creating differentiation in the market through providing high quality products to the customers that meet with their purchasing power and needs. They offer niche products that have abilities of resistance against water, vibration, and scratches that are not available in other local watches manufactured by most of their competitors [2].

Strongest/ weakest competitive position of tag Heuer Company

In accordance with the market analysis Rolex, Breitling, and Omega have the strongest market position from the competitors of the Tag Heuer Company. While the Zenith and Patek Philippe has the weakest market position as their market shares are less than 2%. 

Price strategy and price analysis of tag Heuer Company

Price strategy is itself a marketing strategy if prices are set appropriately then the company can easily get the attention of the targeted market. People want to have high-quality products at cheap prices while buying need-based products. However, while purchasing luxury products high prices are also acceptable. Tag Heuer company provide both types of products Luxury watches and simple watches. Pricing strategy for both companies are set differently [3].

For the latest models and luxury products company is following Premium Price strategy and High price strategy. Current prices of Tag Heuer watches are between the price ranges of CHF 6000 to 260000. The Cheapest watch by the tag Heuer for the woman named as Blue Dial Quartz price is CHF 79200. Price analysis for the company in the targeted market elaborate that pricing strategy set by the company is appropriate and reasonable as they are selling products as the luxury brand. People living in Switzerland can afford expensive products because of their strong financial conditions. 

Threats to the company of tag Heuer Company

 Tag Heuer company is facing threats in the market because of the increasing sales of the new entrants and competitors. Rolex as the competitor of the company is the biggest threats. While innovative competitor is also offering new features and unique quality attributes that are causing the customers to switch on their brands.  

Conclusion on tag Heuer Company

Tag Heuer company is doing well in the smart watch industry even in the highly competitive market. Prices for the smart watches are set higher as the company is offering luxury products and the economic condition of Switzerland is stable. While the increase in competition is a threat to the company.   

References of tag Heuer Company