Everybody Pivots 2

American ingenuity. British humor. Swedish design. Brazilian passion. German engineering. Swiss watchmaking.

About that last one.

Through 1970, the Swiss dominated the global watch market, responsible for the movements in half of all watches sold. Swiss watchmaking was unparalleled.

But times change.

Quartz movements changed the game. Asian manufacturers earned market share. Customers realized the cheaper movements were just as good for telling time. All things equal, most people liked saving money.

In 1983 Nicolas Hayek merged two struggling Swiss companies to form Swatch. Hayek pivoted.

Rather than sell precisions, Hayek sold fashion. These ‘second watches’ used the cheaper quartz but offered style the competitor’s simple, black models did not. Swiss market share never reached its previous peaks, but became a successful business.

Everyone pivots.

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