This is an example of how the Business Model Canvas can be used to remodel a failing business. The example used is for SWATCH. And how Nicholas Hyeck created a new Value proposition. Watches are can jewellery and fashion items

1. Business Model Canvas: BMC
Part II
An Example
Cloverhill Consulting
The future is developing…
Shaun B. Brailsford
T:: +44 (0)779 206 2662
E:: shaun@cloverhillconsulting.com
Skype:: Shaun.Brailsford

2. Business Model Canvas: BMC
SMH (Swiss Corporation for Microelectronics
and Watchmaking Industries Ltd.)

3. 1982 - The Situation
Business Model Canvas: BMC

4. 1982 - The Situation
Business Model Canvas: BMC
 Quartz technology
 Swiss watch market share falls to 15%
 Banks shutting down money supply
 Manufacturers think – We can’t produce
that quality at a that price
 Fear of cannibalising profits
 Asuag & SSIH Bankrupt
 James Bond looses his Omega

5. Business Model Canvas: BMC
Nicholas G. Hayek

6. A New Value Proposition
Watches are jewellery
Business Model Canvas: BMC

7. The Strategy
 Upmarket watches positioned as heritage
pieces
 Create a new watch for low end market
 Manufacturing cost to be less than 15%
of retail price
 Reduce components parts from 91 to 50
 Insisted on owning 51% of the new
company
Business Model Canvas: BMC

8. Business model canvas: BMC
SMH (Swiss Corporation for Microelectronics
and Watchmaking Industries Ltd.)

9. The Marketing
 Fashionable, low cost & lifestyle
 Pricing $40 - $50
 30% of retail price to go into marketing
 Limited edition runs
 Commissioned Artists & industrial
designers to create “The Look”
 Stand alone Swatch stores
Business model canvas: BMC

10. KP KA VP CR CS
KR CH
C£ R£
10
SMH
PRODUCTION &
QUALITY CONTROL
R&D
HR, FINANCE ETC
MANUFACTURING
PLANTS
BRAND PORTFOLIO
HIGH END &
LUXURY SEGMENT
MID SEGMENT
MASS MARKET
BLANCPAIN, OMEGA,
LONGINES, RADO
TISSOT, CERTINA, HAMILTON,
MIDO
SWATCH, FLIK FLAK

11. KP KA VP CR CS
KR CH
C£ R£
11
SWATCH
PRODUCT DESIGN
MARKETING &
COMMUNICATION
SWATCH DESIGN
SWATCH BRAND
MASS MARKET
TRENDY LOW-COST
LIFESTYLE
(SECOND)
WATCHES
LIFESTYLE
MOVEMENT
MSWATCH SHOPS
RETAIL
LIFESTYLE EVENTS
GUERRILLA
MARKETING
MANUFACTURING
PAYMENTS TO
SMH
MARKETING
WATCH SALES
SMH
AS PRODUCTION
PARTNERS

12. KP KA VP CR CS
KR CH
C£ R£
12
SWATCH
Fashion
item

13. The Lessons
 Identified the Value Proposition
 Defined clear Customer Segment
 Clearly structured Channels to Market
 Manufactures as Key Partners
 Product design as a Key Activity
Business Model Canvas: BMC

14. The Conclusion
With a new business model
a failing industry can now
delivers sustained revenue
Business Model Canvas: BMC

15. Business Model Canvas: BMC
Cloverhill Consulting
The future is developing…
Shaun B. Brailsford
T:: +44 (0)779 206 2662
E:: shaun@cloverhillconsulting.com
Skype:: Shaun.Brailsford