Swarovski International Holding

Final Project:
Swarovski International Holding

MGT 620
Managing global corporations

Presented to: Dr. Ziad Haddad

Presented by: Christine HMEDEH
ID: 201900524
Spring 2022-2023

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Table of Contents
I. Introduction of the business ................................................................................................................ 5
a) Introducing business. ........................................................................................................................ 5
b) Business type .................................................................................................................................... 5
c) Who are they marketing to and why? .............................................................................................. 5
II. HISTORY OF THE COMPANY ................................................................................................................. 6
III. VISION, MISSION, AND VALUES: ...................................................................................................... 6
a) Vision ................................................................................................................................................. 6
b) Mission .............................................................................................................................................. 6
c) Values ................................................................................................................................................ 6
IX. BUSINESS INITIATIVES ...................................................................................................................... 7
a) Current business key objectives: ...................................................................................................... 7
b) Future business key objectives of Swarovski: ................................................................................... 7
V. FOREIGN MARKET DECISIONS .............................................................................................................. 7
a) How did the company penetrate a foreign market? ........................................................................ 7
b) How was the market research selected? .......................................................................................... 8
VI. Competition ...................................................................................................................................... 9
a) Potential competitor: ........................................................................................................................ 9
b) Competitive advantages of the company ......................................................................................... 9
c) International strategies comparison. .............................................................................................. 10
VII. Economic-geographic environment ............................................................................................... 11
a) Geographic factors that influence business activities in the country. ............................................ 11
1. Raw materials: ............................................................................................................................ 11
2. Manufacturing facilities: ............................................................................................................ 11
3. Distribution networks: ............................................................................................................... 12
4. Tourism and retail opportunities: .............................................................................................. 12
5. Market considerations: .............................................................................................................. 13
b) Economic conditions that affect the company’s activities. ............................................................ 13
XIII. Social-cultural environment........................................................................................................... 14
a) Demographic trends that might influence business activities. ....................................................... 14
b) Cultural analysis of language, customs, traditions and beliefs of a country. ................................. 15
XIV. Political-legal environment ............................................................................................................ 16

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a) How government and politics influence the economic and business environment of the company:
16
b) Formal trade barriers that are required to adapt business strategy. ............................................. 17
c) How is the host country attracting foreign investments? .............................................................. 18
d) How intellectual property protection and regulation by countries affect foreign investments? .. 19
XV. The four P’s ..................................................................................................................................... 20
a) Product: ........................................................................................................................................... 20
b) Price: ............................................................................................................................................... 20
c) Place ................................................................................................................................................ 20
d) Promotion: ...................................................................................................................................... 21
XVI. Swot analysis .................................................................................................................................. 21
XVII. Company structure ......................................................................................................................... 22
a) The company hierarchy: ................................................................................................................. 22
b) Partners of Swarovski ..................................................................................................................... 24
c) Strategic alliance ............................................................................................................................. 25
XVIII. Product and target market planning ......................................................................................... 25
a) Product concept identifying attributes, features, and customer benefits: .................................... 25
i. The product concepts: ................................................................................................................ 25
ii. Identifying Attributes and Features: ........................................................................................... 26
iii. Customer Benefits: ..................................................................................................................... 26
b) Product life cycle ............................................................................................................................. 26
c) Target market.................................................................................................................................. 27
iv. Demographics: ............................................................................................................................ 27
v. Media Habits: .............................................................................................................................. 27
vi. Consumer Behavior Patterns: ..................................................................................................... 28
vii. Lifestyle Activities: .................................................................................................................. 28
XIX. Conclusion ...................................................................................................................................... 28
a) What are the successes and failures of the foreign market entry for the company? .................... 28
i. Successes: ................................................................................................................................... 28
ii. Failures: ....................................................................................................................................... 29
b) What are your recommendations to the company and/or similar industries considering foreign?
29
iii. some recommendations ............................................................................................................. 29

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c) Why we need companies like SWAROVSKI？ ................................................................................. 30

iv. The reason................................................................................................................................... 30
XX. References: ..................................................................................................................................... 32

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I. Introduction of the business

a) Introducing business.
Swarovski Gemstones is an Austrian luxury brand, whose main focus is to provide the jewelry
industry with the finest and clearest stones. The company was founded in 1895 by Daniel
Swarovski and is known for its precision-cut crystal and exquisite craftsmanship, it has Crystal has
a chemical coating that is used to create the many different colors of the crystals and comes in
many different shapes and sizes giving them world renowned recognition for their stunning clarity
and excellence.
Swarovski delivers a diverse portfolio of unmatched quality, craftsmanship, and creativity and it is
specializing in the production of high-quality crystal products such as jewelry, accessories,
figurines, and home decor.

Today, the Swarovski Crystal Business is run by the fifth generation of family members and has a
global reach with approximately 3,800 stores in around 170 countries, more than 29,000
employees, and revenue of about 2.7 billion euros. Together with its sister companies Swarovski
Optic (optical devices) and Tyrolite (abrasives), Swarovski Crystal Business forms the Swarovski
Group.

b) Business type

Swarovski is largely a manufacturing company. Using their own cutting process, the company
specializes in producing and manufacturing high-quality crystal items. Swarovski, on the other
hand, offers services such as customization and personalization of their items for clients and
businesses. Swarovski, for example, offers a service called "Swarovski Crystal Studio," which
allows clients to personalize their jewelry with a wide range of crystal hues, sizes, and shapes.
Swarovski also offers design and advisory services to firms who want to incorporate its crystals
into their goods. While Swarovski's core business is manufacturing, it also provides value-added
services to its customers.
c) Who are they marketing to and why?

Swarovski markets its products to customers who appreciate luxury and quality craftsmanship.
The company's target demographic includes affluent individuals who are willing to pay a premium
for high-quality crystal products. Swarovski also targets gift-givers and collectors who value the
unique beauty and design of their products. Swarovski's marketing campaigns focus on
highlighting the elegance, glamour, and sophistication of their crystal products to appeal to their
target audience. Therefore, the target group is women belonging to different consumer groups
having the age between 18-70 years and accordingly the product is produced for them. Customers
are given a wide range of products to choose from, their own favorite and meet their needs.

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II. HISTORY OF THE COMPANY

Switzerland-based Swarovski International Holding AG is the parent company of the Swarovski
group of firms situated in and around Watten, Austria's Tyrol area. Swarovski, founded in 1895,
has become practically synonymous with crystal manufacture. The company produces crystal
jewelry stones, crystal presents and objects--including its famous collection of small animals--and
accessories, as well as crystal-based materials for the fashion sector and crystal chandelier
components. Swarovski is also well-known for its Swarovski Optic brand of high-performance
telescopes, gun-sites, and binoculars for hunters and birdwatchers. SW reflex, another corporate
subsidiary, makes roadside reflectors and related highway safety items. Tyrolite, the company's
division, manufactures approximately 70,000 bonded, grinding, cutting, sawing, and drilling tools
and systems. Lastly, the company is a partner in the Signity joint venture with Swiss gemstone
vendor Golay Buchel & Cie., which was founded in 1999 to manufacture genuine and
manufactured gemstones, cubic zirconia, and related products. Swarovski employs about 12,000
people worldwide, with plants in the United States, Mexico, Italy, Brazil, Argentina, and other
countries. Swarovski is still entirely owned and run by the original Swarovski family.

III. VISION, MISSION, AND VALUES:

a) Vision
Their vision is to provide color-matched gemstones that are ready-to-set to companies and private
customers around the world. In this way Swarovski offers a unique gemstone collection affordable
for most people and allows each company to bring Swarovski into their own design.
“Gem Visions strives to provide innovative solutions and creative ideas in keeping with the latest
global trends.”
Their general vision and mission: “To add sparkle in people’s everyday life.”

b) Mission
It’s important for Swarovski Gemstones to sell only high-quality stones with a high precision cut in
a variety of colors. Swarovski’s mission is to create perfection, by cutting and polishing the
gemstones meticulously, in order to emphasize the natural light and sparkle in the stones.

c) Values
SWAROVSKI's corporate culture: Daniel Swarovski, technical genius, humanitarian, and founder
of the company, had a crystal-clear vision that went far beyond financial or corporate ambitions.
One of his primary concerns was to build a democratic company that could offer employees, co-
workers and directors a life of dignity and self-respect, of social harmony and cultural experiences.
His attitude was shaped by his own early experiences:
'Our fellow workers are our fellow humans. We need to value each individual as a human being
and help him or her to lead a fulfilled life in honor and dignity.”

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IX. BUSINESS INITIATIVES

a) Current business key objectives:
1. Enhancing the customer experience: Swarovski is focusing on creating an exceptional
customer experience across all its channels, including online and offline stores. The company
is investing in technology and training to ensure that every customer touchpoint is
personalized and memorable.
2. Sustainable practices: Swarovski has made a commitment to sustainability and is working to
reduce its environmental footprint. The company is exploring new materials and production
techniques to create products that are more eco-friendly and is implementing initiatives to
reduce waste and carbon emissions in its operations.
3. Digital transformation: Swarovski is investing in digital technology to improve its operations
and customer experience. The company is using data and analytics to optimize its supply chain,
improve inventory management, and personalize its marketing and promotions.

b) Future business key objectives of Swarovski:

1. Expansion into new markets: Swarovski is looking to expand its reach into new markets,
particularly in Asia and the Middle East. The company is exploring new partnerships and
collaborations to increase its presence in these regions.
2. Innovation in product design: Swarovski is committed to pushing the boundaries of product
design and innovation. The company is investing in research and development to create new
materials and product lines that are both beautiful and sustainable.
3. Building a diverse and inclusive culture: Swarovski recognizes the importance of diversity and
inclusion in building a successful business. The company is working to create a culture that
celebrates diversity and fosters inclusivity across all levels of the organization. Swarovski aims
to attract and retain the best talent from diverse backgrounds and empower them to thrive
within the company.

V. FOREIGN MARKET DECISIONS

a) How did the company penetrate a foreign market?
Emerging from World War II, the company built optical experiments to begin the production of
eyeglass lenses in 1945. This was to become an important part of the company's operations and
remained a key component of its catalog until the early 1980s. Swarovski not only ground lenses,
but it also launched an initiative to train opticians for the Austrian market, founding the Industrial
and Vocational School for Optics, Glass, Iron, and Metal, which later became the Trade School for
Opticians, producing a large share of the country's opticians.
The company's optical glass activities grew quickly. By 1948, production of optical glass had
outgrown the company's glass-cutting headquarters. The company opened a new facility in nearby
Absam, forming the operation as the subsidiary Swarovski Optic KG in 1949. While eyeglass lenses
represented the largest share of the new subsidiary's production-up to 300,000 lenses ground per

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month-Swarovski Optic launched production of its first pair of binoculars, the 7 x 24, which was
quickly acclaimed by Europe's hunting enthusiasts.
In the 1950s, Swarovski's reflective glass operations had also begun to grow--the postwar
European economic boom and the rapidly growing numbers of automobiles on the continent's
highways helped to stimulate demand for the Swareflex range. Meanwhile, Swarovski's Tyrolite
operations were also outpacing its production capacity, and those operations were moved to a
new production plant, in Schwaz, Austria, in 1950.
Tyrolite was also leading Swarovski's international development. In 1960, the company opened its
first manufacturing plant outside of Austria, founding the grinding tool production facility
Abrasivos Austromex in Mexico City. The company opened a new foreign plant in Buenos Aires,
Argentina, in 1968. This expansion coincided with the launch of a new line of resinoid bonded
diamond grinding tools the year earlier.

Swarovski's crystal operations were also growing. In 1965, the company began producing crystal
chandelier components--dressing up such famed chandeliers as those in the Metropolitan Opera
House in New York City and France's Palace of Versailles. Two years later, Swarovski began
producing a new range of natural and artificial gemstones, including cubic zirconia. The company
developed the first mechanical process for cutting cubic zirconia by the end of the decade.

b) How was the market research selected?

The company has made several determinations to penetrate foreign markets, including:
I. Market potential: Swarovski evaluates the market potential of a foreign country before
entering. The company assesses the demand for its products, the size of the market, and the
competition. Swarovski enters markets where it sees an opportunity to grow its brand and
increase sales.
II. Cultural fit: Swarovski considers the cultural fit of a foreign market before entering. The
company considers the local culture, customs, and traditions to ensure that its products and
marketing messages resonate with the local population.
III. Regulatory environment: Swarovski evaluates the regulatory environment of a foreign country
before entering. The company ensures that it complies with all local laws and regulations,
including those related to import/export, taxation, and employment.
IV. Distribution channels: Swarovski considers the distribution channels available in a foreign
market before entering. The company assesses the availability and efficiency of logistics and
transportation networks to ensure that its products can be delivered to customers in a timely
and cost-effective manner.
V. Brand awareness: Swarovski evaluates its brand awareness in a foreign market before
entering. The company assesses the level of brand recognition and loyalty among customers
and competitors in the market. Swarovski enters markets where it can leverage its existing
brand equity to gain a competitive advantage.

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VI. Competition
a) Potential competitor:
When it comes to potential competitors of Swarovski, there are several companies that have
similar or related business activities and operate in the same market. Here are a few examples:
1. Tiffany & Co.: Tiffany & Co. is a luxury jewelry brand that operates in the same market as
Swarovski. The company specializes in high-end diamond and gemstone jewelry, as well as
luxury accessories and home goods.
2. Pandora: Pandora is a Danish jewelry company that produces customizable charm bracelets
and other fashion jewelry. While Pandora operates in a slightly different market segment than
Swarovski, the two companies compete for customers who are interested in affordable and
stylish jewelry.
3. Cartier: Cartier is a French luxury jewelry brand that specializes in high-end diamond and
gemstone jewelry, as well as luxury watches and accessories. While Cartier operates at a higher
price point than Swarovski, the two companies compete for customers who are interested in
luxury and high-quality jewelry.
4. Bulgari: Bulgari is an Italian luxury brand that produces high-end jewelry, watches, and
accessories. The company is known for its use of precious metals and gemstones, and its
designs are often bold and dramatic. While Bulgari operates in a slightly different market
segment than Swarovski, the two companies compete for customers who are interested in
luxury and high-quality jewelry.
5. Michael Kors: Michael Kors is an American fashion brand that produces clothing, accessories,
and jewelry. While Michael Kors operates in a different market segment than Swarovski, the
company competes for customers who are interested in affordable and stylish fashion
accessories, including jewelry.

b) Competitive advantages of the company

Swarovski has several competitive advantages that have helped the company succeed in the luxury
jewelry market. Here are a few examples:
1. High-quality materials: Swarovski is known for its use of high-quality materials in its products,
including precision-cut crystals, precious metals, and gemstones. The company has a long-
standing reputation for producing some of the most beautiful and high-quality jewelry in the
world, which has helped it establish a loyal customer base.
2. Design and innovation: Swarovski invested heavily in design and innovation, constantly
pushing the boundaries of what is possible with crystals and other materials. The company has
a team of talented designers and engineers who work to create new products and techniques
that set Swarovski apart from its competitors.
3. Brand recognition: Swarovski is a well-established brand with global recognition. The company
has built a reputation for producing high-quality, beautiful jewelry that is synonymous with

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luxury and glamour. This brand recognition helps Swarovski attract customers and stand out
in a crowded and competitive market.
4. Distribution network: Swarovski has an extensive distribution network that spans the globe.
The company sells its products through a variety of channels, including its own retail stores,
department stores, and online marketplaces. This distribution network helps Swarovski reach
a wide range of customers and increase its sales.
5. Sustainability practices: Swarovski is committed to sustainability and has implemented several
initiatives to reduce its environmental footprint. The company uses eco-friendly materials and
production techniques and has implemented programs to reduce waste and carbon emissions.
This commitment to sustainability helps Swarovski appeal to customers who are interested in
environmentally responsible products.

In simple terms, Swarovski's competitive advantages lie in its use of high-quality materials,
innovative design, strong brand recognition, extensive distribution network, and commitment to
sustainability. These advantages help the company differentiate itself from its competitors and
appeal to customers who are looking for luxury and quality in their jewelry purchases.

c) International strategies comparison.

When it comes to international strategies, Swarovski and its competitors have taken different
approaches to entering and succeeding in foreign markets. Here's a comparison of their strategies:
1. Swarovski: Swarovski has taken a standardized approach to its products and operating policies,
meaning that it offers the same products and services in all markets where it operates. The
company has a strong brand identity and has built a reputation for producing high-quality and
innovative jewelry. While the company may make some adjustments to its marketing and
advertising strategies to appeal to local customers, it largely maintains the same product line
and operating policies across all markets.
2. Tiffany & Co.: Tiffany & Co. has also taken a standardized approach to its products and
operating policies. The company has a strong brand identity and offers the same products and
services in all markets where it operates. However, the company may make some adjustments
to its marketing and advertising strategies to appeal to local customers, such as using local
celebrities or influencers in its campaigns.
3. Pandora: Pandora has taken a more adaptive approach to its products and operating policies,
meaning that it adjusts its product line and marketing strategies to appeal to local customers.
For example, the company may offer charms that are specific to a certain country or culture
or adjust its marketing campaigns to align with local customs and traditions.
4. Cartier: Cartier has also taken an adaptive approach to its products and operating policies. The
company may adjust its product line to appeal to local customers, such as offering products
that are specific to a certain culture or market segment. Additionally, the company may adjust
its marketing and advertising strategies to appeal to local customers.

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5. Bulgari: Bulgari has taken a hybrid approach to its products and operating policies, meaning
that it combines elements of both standardized and adaptive strategies. The company
maintains a strong brand identity and largely offers the same products and services in all
markets where it operates. However, the company may make some adjustments to its product
line and marketing strategies to appeal to local customers.
Overall, there is no one-size-fits-all approach to international strategies, and companies must
weigh the benefits and drawbacks of standardized and adaptive strategies in each market where
they operate. While some companies may benefit from maintaining a standardized approach to
their products and operating policies, others may find that adjusting appeal to local customers is
more effective. Ultimately, the key to success in foreign markets is understanding the unique
needs and preferences of local customers and tailoring products and services to meet those needs.

VII. Economic-geographic environment

a) Geographic factors that influence business activities in the country.
It's important to note that these factors can vary greatly depending on the specific country or
region in which Swarovski operates. Swarovski would need to assess and adapt its business
strategies, accordingly, considering the unique geographical characteristics of each location.
The influence of geographic factors on Swarovski's business activities in a specific country can
manifest in various ways.
1. Raw materials:
Swarovski requires specific raw materials to produce its crystal products, such as quartz, minerals,
and metals. These resources are often found in specific geographic locations. Therefore, Swarovski
may need to establish partnerships or secure access to mines, quarries, or other resource-rich
areas to ensure a consistent supply of high-quality materials. In simple words, natural resources
represent a geographic factor that determines the availability of natural resources that may be
essential for Swarovski's manufacturing processes. For instance, countries with abundant reserves
of minerals like quartz or certain metals used in the production of crystals may be more favorable
for Swarovski's operations.

2. Manufacturing facilities:
Geographic resources play a role in determining the location of Swarovski's manufacturing
facilities. Factors such as access to skilled labor, transportation networks, and availability of
infrastructure influence the selection of suitable locations. Swarovski may choose areas with
abundant labor supply, favorable business regulations, and proximity to target markets to
establish its manufacturing plants. Also, geographic factors like climate or environmental
conditions can influence Swarovski's manufacturing processes. For instance, if a country has a
humid climate, Swarovski may need to invest in specialized production facilities or storage

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solutions to maintain the quality of its products. Similarly, extreme temperatures may require
adjustments in manufacturing techniques or product design to ensure durability.
a. Water resources: Access to clean water sources is crucial for maintaining the quality standards
of its products. Swarovski may locate its manufacturing facilities near reliable water sources or
invest in water management systems to ensure an uninterrupted supply.
b. Energy sources: Geographic resources can also influence Swarovski's energy requirements.
Access to renewable energy sources like wind, solar, or hydroelectric power can be
advantageous for reducing the company's carbon footprint and operating costs. Swarovski
may seek out locations where renewable energy infrastructure is readily available or invest in
renewable energy projects to power its operations.
3. Distribution networks:
Geographic resources, such as transportation infrastructure, play a critical role in Swarovski's
distribution networks. Access to well-developed roads, seaports, airports, and railway systems
enables efficient movement of products from manufacturing facilities to retail stores or
distribution centers. Swarovski may consider locating its distribution centers strategically to
optimize logistics and ensure timely delivery to customers. Therefore, challenging terrain or
inadequate transportation infrastructure can impact the movement of raw materials and supplies
to Swarovski's manufacturing facilities. If mountains or difficult terrains exist, it may result in
increased transportation costs and logistical challenges. Swarovski would need to plan and allocate
resources accordingly to overcome these obstacles.
a. Terrain: The physical landscape, such as mountains, hills, or flat plains, can influence the
logistics and distribution of Swarovski's products. In countries with challenging terrains,
transportation of raw materials or finished goods may be more difficult, time-consuming, or
costly. Additionally, mountainous regions can affect the construction of infrastructure like
roads or railways.
b. Waterways: The availability and accessibility of waterways, such as rivers, lakes, or seaports,
can impact Swarovski's import and export activities Swarovski relies on water resources for
various stages of its manufacturing processes, including cutting and polishing crystals.
Countries with well-developed ports or navigable rivers can provide efficient transportation
options for the movement of raw materials and finished goods, reducing costs and enhancing
supply chain efficiency.
c. Climate: Climate conditions can affect the production, transportation, and storage of
Swarovski's products. Extreme temperatures, humidity, or seasonal variations may require
specialized handling or storage facilities to ensure the quality and longevity of the products.
4. Tourism and retail opportunities:
Swarovski often operates retail stores in popular tourist destinations. Geographic resources, such
as attractive landscapes, cultural heritage sites, or vibrant cities, can create opportunities for

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Swarovski to establish flagship stores and leverage the influx of tourists. These geographic
resources contribute to the brand's visibility and enhance its retail presence.
5. Market considerations:
Geographic factors can also influence the target market for Swarovski's products. The proximity
of Swarovski's operations to potential customers may affect marketing strategies, customer reach,
and the ability to respond quickly to market demands. Being geographically closer to customers
may allow for better market understanding and the customization of products to suit local
preferences.
By leveraging geographic resources, Swarovski can secure raw materials, establish manufacturing
facilities, optimize distribution networks, and tap into market opportunities. Understanding and
harnessing these resources allows Swarovski to support its business operations, ensure product
quality, and cater to customer demand effectively.

b) Economic conditions that affect the company’s activities.

1. GDP: Swarovski's activities can be influenced by the overall economic growth of the countries
in which it operates. Higher GDP indicates increased consumer spending and potential market
expansion, which can attract foreign investment and positively impact Swarovski's sales and
profitability.
2. Inflation: High inflation rates can erode consumer purchasing power, making it more difficult
for Swarovski to sell its products and generate revenue. Additionally, inflation can increase the
cost of raw materials and production, potentially impacting Swarovski's profitability.
3. Interest rates: High interest rates can make borrowing more expensive for both businesses
and consumers. This can reduce consumer spending on luxury goods, including Swarovski
products, and potentially affect the company's sales and profitability. Moreover, high interest
rates can deter foreign investment as it becomes more costly to finance business expansion or
investment projects.
4. Currency value (exchange rates): Swarovski is an international company, and fluctuations in
exchange rates can significantly impact on its operations. If the currency of a country where
Swarovski operates weakens relative to other currencies, it may increase the cost of importing
raw materials or finished goods. On the other hand, a weaker currency can make Swarovski's
products more affordable in foreign markets and potentially boost exports.
5. Personal income: The level of personal income in a country affects consumer spending
patterns, including luxury purchases. Higher personal income levels generally indicate a larger
consumer base with the ability to purchase Swarovski products. Therefore, countries with
higher personal incomes may attract more foreign investment and have a positive impact on
Swarovski's activities.
6. Employment: The employment situation in a country can influence Swarovski's market
potential. High levels of unemployment or job insecurity may reduce consumer confidence
and discretionary spending, which could negatively impact Swarovski's sales. Conversely, low

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unemployment rates can create a stable and prosperous consumer base, attracting foreign
investment and benefiting Swarovski's operations.
In summary, Swarovski's activities can be affected by the economic conditions related to GDP,
inflation, interest rates, currency value (exchange rates), personal income, and employment.
Favorable economic conditions typically attract foreign investment and create a conducive
environment for Swarovski's operations, while adverse economic conditions may present
challenges to its business activities.

XIII. Social-cultural environment

a) Demographic trends that might influence business activities.
1. Age distribution: Changes in the age distribution of the population can significantly impact
SWAROVSKI's target market. An aging population, for instance, may result in increased
demand for products that cater to older customers, such as elegant and sophisticated jewelry
pieces. On the other hand, a younger population may prefer trendier and more contemporary
designs. SWAROVSKI needs to adapt its product offerings and marketing strategies
accordingly.
2. Income levels: Variations in income levels across different demographic groups can affect
SWAROVSKI's customer base and pricing strategies. Higher-income individuals are more likely
to purchase luxury goods, while lower-income individuals may have more limited purchasing
power. SWAROVSKI needs to consider the income distribution of its target market and adjust
its pricing, promotions, and product range accordingly.
3. Gender demographics: Gender demographics can influence the types of products and designs
that SWAROVSKI should focus on. For example, if there is a significant gender imbalance in a
particular market, the company may need to consider designing products that appeal to the
dominant gender. Additionally, shifting gender roles and preferences may influence the
demand for specific product categories or styles.
4. Ethnic and cultural diversity: Cultural diversity is an important aspect of demographic trends.
Different cultures and ethnicities may have distinct preferences for jewelry and accessories.
SWAROVSKI can tailor its product range to cater to the specific preferences and cultural
symbolism of different ethnic groups, ensuring that its designs resonate with diverse customer
bases.
5. Urbanization: The trend of urbanization can impact SWAROVSKI's business activities. As more
people move to urban areas, there may be an increased concentration of potential customers
in specific locations. SWAROVSKI can target these urban centers by strategically locating stores
and leveraging the higher foot traffic and consumer demand in these areas.
6. Digital literacy and technology adoption: The level of digital literacy and technology adoption
among the target demographic can influence SWAROVSKI's marketing and sales strategies. In
markets with high digital literacy, the company can invest in digital marketing campaigns, e-
commerce platforms, and social media engagement to reach and engage with customers
effectively.

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Understanding and monitoring these demographic trends is crucial for SWAROVSKI to identify
emerging opportunities, adapt its product offerings, and tailor its marketing efforts to effectively
reach and cater to its target customers.

b) Cultural analysis of language, customs, traditions and beliefs of a country.

Cultural analysis, including language, customs, traditions, and beliefs, has influenced Swarovski's
business activities in various ways:
1. Design and Product Development: Swarovski recognizes the importance of cultural
preferences in design and product development. The company has embraced cultural diversity
by creating collections that cater to different markets and their unique aesthetics. For
instance, Swarovski collaborates with local designers and artists to infuse cultural elements
into their collections, thereby appealing to specific cultural preferences and ensuring that their
products resonate with local customers.
2. Localized Marketing: Swarovski understands the significance of language and cultural context
in effective marketing. When expanding into new markets, the company often tailors its
marketing campaigns to the local language, customs, and traditions. This localized approach
helps establish a deeper connection with consumers, as it demonstrates respect for their
culture and enhances brand relevance.
3. Collaborations and Partnerships: Swarovski actively engages in collaborations and partnerships
with cultural influencers, celebrities, and organizations. By aligning with individuals or entities
that hold cultural significance, Swarovski enhances its brand image and reaches a broader
audience. These collaborations often involve showcasing cultural heritage, traditions, and
craftsmanship, which in turn adds value and appeal to the brand.
4. Cultural Symbolism: Swarovski incorporates cultural symbolism into its designs, reflecting the
beliefs and values of different cultures. By using symbols and motifs that are meaningful to
specific cultural groups, Swarovski creates products that resonate with customers on a deeper
level. This strategy helps the brand establish an emotional connection with consumers,
fostering brand loyalty and preference.
5. Limited Edition Collections: Swarovski occasionally releases limited edition collections inspired
by specific cultural celebrations or events. These collections tap into the cultural significance
of festivals, holidays, or traditions, offering products that are aligned with the cultural zeitgeist.
This approach generates excitement and exclusivity, attracting customers who value cultural
authenticity and unique experiences.
6. Corporate Social Responsibility (CSR): Swarovski's CSR initiatives often align with cultural
values and priorities. For example, the company may support cultural preservation projects,
art foundations, or initiatives that promote traditional craftsmanship. By demonstrating a
commitment to cultural preservation and supporting local communities, Swarovski enhances
its reputation and goodwill among consumers who value cultural heritage.
Cultural analysis allows Swarovski to navigate the diverse global market while respecting and
embracing different cultures. It helps the company create products, marketing strategies, and

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initiatives that resonate with consumers at a cultural level, ultimately driving brand loyalty and
long-term success.

XIV. Political-legal environment

a) How government and politics influence the economic and business environment of
the company:
Government and politics can significantly influence the economic and business environment of
Swarovski International Holdings in several ways:
1. Trade Policies and Regulations: Governments establish trade policies and regulations that can
impact Swarovski's international operations. Tariffs, import/export regulations, trade
agreements, and customs procedures directly affect the company's supply chain,
import/export costs, and market access. Changes in trade policies can disrupt existing business
relationships, create barriers to entry, or open new opportunities in different markets.
2. Taxation and Financial Policies: Governments impose taxes on businesses, including corporate
taxes, value-added taxes, and income taxes. Changes in tax policies can directly impact
Swarovski's profitability and investment decisions. Additionally, financial policies such as
interest rates, exchange rate policies, and capital controls can affect the cost of borrowing,
currency fluctuations, and international trade.
3. Regulatory Environment: Governments enact regulations to ensure fair competition,
consumer protection, environmental sustainability, labor rights, and intellectual property
protection. Compliance with these regulations can add costs and administrative burdens to
Swarovski's operations. Changes in regulations can require the company to adjust its
processes, invest in new technologies, or adopt sustainable practices.
4. Government Support and Incentives: Governments often provide support and incentives to
promote economic growth and attract investments. Swarovski may benefit from government
programs such as grants, subsidies, tax incentives, or infrastructure development that can
enhance its competitiveness and operational efficiency.
5. Political Stability and Governance: Political stability is crucial for businesses to thrive. A stable
political environment provides predictability, encourages long-term investments, and fosters
investor confidence. Conversely, political instability, corruption, or weak governance can
create uncertainty, hinder business operations, and deter foreign investments.
6. Labor and Employment Policies: Governments regulate labor and employment practices,
including minimum wage laws, labor rights, work-hour regulations, and employee benefits.
These policies can impact Swarovski's labor costs, workforce management, and overall
employee satisfaction.
7. Environmental and Sustainability Policies: Governments are increasingly focusing on
environmental protection and sustainability. Swarovski's operations may be subject to
environmental regulations, emissions standards, waste management requirements, and

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sustainability reporting. Adhering to these policies can enhance the company's reputation,
ensure compliance, and attract environmentally conscious customers.

It is important for Swarovski International Holdings to closely monitor and engage with
government and political developments to anticipate changes, assess risks, and seize
opportunities. Active participation in industry associations, advocacy for favorable policies, and
maintaining positive relationships with government stakeholders can help Swarovski navigate the
evolving economic and business landscape influenced by government and politics.

b) Formal trade barriers that are required to adapt business strategy.

Formal trade barriers can significantly impact Swarovski company's business strategy. Some of the
common formal trade barriers that might require adaptation of business strategies include:
1. Tariffs: Tariffs are taxes imposed on imported goods. Governments may impose tariffs to
protect domestic industries, raise revenue, or address trade imbalances. High tariffs on
imported materials or finished products can increase production costs for Swarovski and make
its products less competitive in the local market. In response, the company may need to
consider strategies such as localized production, seeking exemptions or reductions in tariffs,
or exploring alternative sourcing options.
2. Import/Export Taxes: In addition to tariffs, governments may impose various taxes on imports
and exports, such as value-added taxes (VAT) or customs duties. These taxes can impact the
cost structure and pricing of Swarovski's products in foreign markets. The company may need
to analyze the tax implications and adapt pricing strategies, supply chain management, or
explore options for tax optimization.
3. Foreign Exchange Controls: Some countries impose foreign exchange controls to regulate the
flow of capital in and out of the country. These controls can affect Swarovski's ability to
repatriate profits, transfer funds, or access foreign currencies for imports. To adapt, the
company may need to manage its currency exposure, establish local currency accounts, or
negotiate with authorities for exemptions or special arrangements.
4. Ownership Restrictions: Governments may impose restrictions on foreign ownership in certain
industries or sectors to protect national interests or strategic assets. Swarovski may face
limitations on full ownership or specific operational activities in foreign markets. In response,
the company may consider joint ventures, partnerships with local entities, or licensing
arrangements to comply with ownership restrictions and access target markets.
5. Intellectual Property Protection: In some jurisdictions, weak intellectual property (IP)
protection laws or enforcement can pose challenges for Swarovski's brand image and product
authenticity. Counterfeit products or unauthorized use of trademarks can undermine the
company's market position and revenues. Swarovski may need to implement robust IP
protection strategies, engage in legal actions against infringers, or collaborate with local
authorities to strengthen IP enforcement.

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6. Local Content Requirements: Certain countries may require a minimum level of local content
in products or services, known as local content requirements. Compliance with these
requirements can involve local sourcing, manufacturing, or technology transfer. Swarovski
may need to establish local production facilities, invest in local supply chains, or form
partnerships with local manufacturers to meet these requirements.

It is essential for Swarovski to closely assess and adapt its business strategy to navigate these
formal trade barriers. This may involve market research, engagement with government
authorities, collaboration with local partners, supply chain optimization, and exploring new market
entry or expansion strategies.

c) How is the host country attracting foreign investments?

To attract Swarovski investments in foreign countries, host countries can employ various strategies
and incentives. Here are some common approaches:
1. Investment Incentives: Host countries often offer attractive investment incentives to entice
foreign companies like Swarovski. These incentives may include tax breaks, subsidies, grants,
or other financial incentives designed to reduce the company's initial costs or provide ongoing
support.
2. Infrastructure Development: Countries that invest in robust infrastructure development,
including transportation networks, logistics hubs, and energy systems, can be appealing to
Swarovski. A well-developed infrastructure enables efficient operations, reduces costs, and
facilitates access to markets.
3. Economic Zones and Free Trade Zones: Establishing economic zones or free trade zones with
special regulatory frameworks, streamlined customs procedures, and business-friendly
policies can attract foreign investment. Swarovski can benefit from simplified administrative
processes, reduced trade barriers, and access to a wider market within these designated
zones.
4. Market Access and Regional Integration: Host countries that are part of regional integration
initiatives or have preferential trade agreements can provide Swarovski with enhanced market
access. Access to a larger consumer base and reduced trade barriers within a regional bloc can
be attractive for expanding the company's international presence.
5. Political Stability and Rule of Law: Countries with a stable political environment, transparent
legal systems, and strong protection of property rights can instill confidence in Swarovski's
investments. Political stability ensures a predictable business environment and reduces the
risks associated with sudden policy changes or social unrest.
6. Skilled Workforce and Talent Pool: A host country with a well-educated and skilled workforce
can be an attractive destination for Swarovski's investments. Access to a talent pool with
expertise in areas such as design, manufacturing, technology, and management is crucial for
the company's success and growth.

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7. Support for Research and Development: Host countries that prioritize research and
development (R&D) and innovation can be appealing to Swarovski. Governments that invest
in R&D infrastructure, offer R&D grants or tax incentives, and foster collaboration between
academia and industry can support the company's innovation efforts.
8. Sustainable Development Initiatives: Swarovski's commitment to sustainability aligns with host
countries that prioritize sustainable development. Governments that promote renewable
energy, environmental protection, and social responsibility can be attractive to the company
and may provide opportunities for partnerships or collaborations.

Host countries employ these strategies to attract Swarovski investments by showcasing their
competitive advantages, providing a favorable business environment, and addressing the specific
needs and priorities of the company. Swarovski evaluates these factors and considers the potential
returns, risks, and long-term growth prospects before making investment decisions in foreign
countries.

d) How intellectual property protection and regulation by countries affect foreign

investments?
Intellectual property (IP) protection and regulation by countries can significantly impact foreign
investments for companies like Swarovski, particularly in terms of brand names, copyrights, patents,
software, music, and videos.

1. Brand Reputation and Counterfeiting: Swarovski's brand value and reputation heavily rely on the
protection of its trademarks and brand names. In countries with weak IP protection and enforcement,
counterfeiting and unauthorized use of Swarovski's brand name and logo may be prevalent. This can
lead to a dilution of the brand's identity, loss of consumer trust, and ultimately reduced sales and
profits.
2. Copyright Infringement: Protection of copyrights is crucial for Swarovski, especially in relation to its
creative designs, marketing materials, and digital content. In countries with inadequate copyright
regulations and enforcement, Swarovski's designs and copyrighted materials can be copied or
reproduced without authorization, resulting in financial losses, diminished market exclusivity, and
challenges in maintaining a competitive edge.
3. Patent Protection: Swarovski's innovative products and technologies may be protected by patents. In
countries with weak patent protection, the risk of patent infringement increases. Competitors may
replicate Swarovski's patented products, resulting in lost market share and potential revenue.
Insufficient enforcement of patent rights can discourage investments in research and development
(R&D) as well.
4. Software Piracy: Swarovski relies on software for various purposes, including design, production, and
business operations. In countries with lax enforcement of software copyright laws, piracy and
unauthorized use of software can be widespread. This poses financial risks, potential security
vulnerabilities, and reduced productivity for Swarovski.
5. Music and Video Piracy: Swarovski may utilize music and videos for marketing and promotional
purposes. Weak enforcement of copyright laws in certain countries can enable widespread piracy and
unauthorized distribution of copyrighted music and videos. This undermines the value of Swarovski's
investments in licensing and partnerships and can lead to missed revenue opportunities.

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6. Legal Remedies and Enforcement: In countries where IP protection and enforcement mechanisms are
inefficient or unreliable, companies like Swarovski may face challenges in pursuing legal remedies
against IP infringement. The lack of effective legal recourse can deter foreign investments and limit the
company's ability to protect its intellectual assets.
7. Business Decision-Making: Swarovski's investment decisions in foreign countries are influenced by the
level of IP protection and enforcement. Companies may prioritize markets with stronger IP regulations
and enforcement to minimize the risks associated with IP infringement and maximize their return on
investment.

In the case of countries with inadequate IP protection and enforcement, such as China, companies like
Swarovski may face significant challenges in protecting their intellectual property rights and ensuring a level
playing field. These challenges can impact investment decisions, market entry strategies, pricing
considerations, and overall business operations.

To mitigate these risks, Swarovski can implement proactive measures such as developing a robust IP
protection strategy, leveraging legal agreements and licensing arrangements, conducting due diligence on
IP regulations in target markets, and engaging with local authorities and IP enforcement agencies to
advocate for stronger IP protection measures.

XV. The four P’s

a) Product:
Swarovski are selling genuine gemstones (Sapphire, Topaz, Citrine, Rhodolite, Amethyst, Black
Spinel, Smoky Quartz, Marcasite) created stones (Zirconia, AL pinite castable) and components.
The components make it easier to the consumer to add the gemstones to eyewear, watches
jewelry etc. without the need of special skills. As a service Swarovski gemstone can be combined
with many different materials such as plastic, wood, titanium, stainless steel and 18ct gold, silver,
brass and bronze. Swarovski guarantees technical perfection and makes stones that are of
premium quality, less breakage and more efficiently.

b) Price:

The price of Swarovski Gemstones can vary depending on the stone's quality, color, size cut and
clarity. Furthermore, prices vary depending on how many different colored stones are ordered.
After speaking with Roza it’s still unclear what the price is on their stone, but we have the feeling
that it’s a bit expensive.

c) Place
Swarovski gemstones have offices in 5 different places in Europe; Moscow, Venice and 3 in Triesen,
each office has responsibility for certain countries. Furthermore, they have 4 different offices in
China (Shenzhen, Hong Kong, Seoul and Taipei), in South-east Asia (Ho Chi Minh city, Bangkok,
Surabaya), and in the rest of the world; Dubai, Tokyo, Mumbai, Rio and New York.

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d) Promotion:
Jewelry brands that are interested can become an “ingredient branding partner” for the Genuine
Gemstones and Created Stones collection. Swarovski provides their customers with an annual
trend book/catalog called “Gem Vision” for inspiration. Swarovski gemstones are also online on
Facebook and Instagram which is a good promotion platform for people in the industry and
ordinary people that are interested in jewelry and stones. On Facebook they have an answering
time under 1 hour. And they upload photos and links every day.

XVI. Swot analysis

For Swarovski Crystal, SWOT analysis can help the brand focus on building upon its strengths and
opportunities while addressing its weaknesses as well as threats to improve its market position.

Strengths Weaknesses
• Production sites are present across the
globe reducing specific risks and • Unclear website, hard to navigate.
minimizing order delivery timelines. • Missing information about collaborators,
• Versatile selection of stones, settings and materials and purchase information
materials • Unknown sub brand
• Active on social media
• Global presence with over 125 years of
experience
• Diversified portfolio of products
• Swarovski has a strong history.
• Customer loyalty
• It has over 26000 employees and present
in almost 120 countries
• 1200+ own operated Swarovski beauty and
1000 partner operated boutiques.
• It has vast production locations in
countries like Austria, China, Czech
Republic, India, Jordan, Liechtenstein,
Thailand, United States.
• Strong annual turnover and financial
position.
• Strong brand presence and visibility
• Trustworthy
• Trust seal
• A lot of inspiration

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Opportunities Threats
• Increased competitor activity
• To create a brand identity by collaborating • Changing government policies
with PR activities • Alternate products or services
• Create a brand which increases a sense of • Cheaper manufacturer in China
loyalty amongst consumers • Upcoming fashion and changing trends.
• Needs the right brand communication • Low interest of people in crystal stones as
• B2B - co-branding opportunities investments
• Expand products. • Mother earth ran out of resources.
• Customers obtain knowledge about the • Competitive companies such as
sub-brand Swarovski Gemstones gemselect.com
• Take over smaller competitive companies

XVII. Company structure

a) The company hierarchy:
Swarovski has a hierarchical organizational structure commonly found in large corporations. The
structure includes several key levels, with clear lines of authority and responsibility.
The main components:
1. Board of Directors: The highest level of authority in the company is typically held by the Board
of Directors. They are responsible for setting the overall strategic direction of the company
and making major decisions.
the Board of Directors at Swarovski includes:
Markus Langes-Swarovski: Chairman of the Board
Robert Buchbauer: Chairman of the Executive Board and Family Representative
Nadja Swarovski: Member of the Board and Family Representative
Mathias Margreiter: Member of the Board
Christoph Kargruber: Member of the Board
Mathias Seidler: Member of the Board

2. Executive Management: The Executive Management team consists of top-level executives

who oversee different aspects of the company's operations. This includes the Chief Executive
Officer (CEO), Chief Financial Officer (CFO), Chief Operations Officer (COO), and other senior
executives who are responsible for specific areas such as marketing, sales, and production.

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the Executive Management team at Swarovski included:

Robert Buchbauer: Chairman of the Executive Board and Family Representative
Mathias Margreiter: Executive Board Member responsible for Operations (COO)
Markus Langes-Swarovski: Executive Board Member responsible for Strategy and Innovation
Mathias Seidler: Executive Board Member responsible for Finance (CFO)
Marianne Hübl: Executive Board Member responsible for Human Resources (CHRO)
Giovanna Battaglia Engelbert: Creative Director
Armand Hadid: Executive Board Member responsible for B2B and Licensing
Robert Buchbauer (Acting): Executive Board Member responsible for Sales and Marketing

3. Divisions/Departments: Swarovski may have different divisions or departments based on its

product lines or geographical locations. For example, they might have divisions dedicated to
jewelry, watches, accessories, or home decor. Each division or department is usually headed
by a senior executive who reports to the Executive Management team.
The departments are:
i. Design and Development: This department focuses on the creation and development of
new product designs, innovations, and concepts.
ii. Manufacturing and Production: This department oversees the manufacturing processes,
including the cutting and shaping of crystals, as well as the production of finished goods.
iii. Sales and Distribution: This department is responsible for selling Swarovski products and
managing the distribution channels, which may include retail stores, online sales, and
partnerships with authorized retailers.
iv. Marketing and Branding: This department handles marketing strategies, brand
management, advertising campaigns, and promotional activities to enhance the visibility
and desirability of Swarovski products.
v. Retail Operations: Swarovski has a significant presence in retail, operating its own stores
and boutiques. The Retail Operations department manages the day-to-day operations of
these stores, including inventory management, visual merchandising, and customer
service.
vi. E-commerce and Digital: Swarovski has an online presence, and the E-commerce and
Digital department focuses on managing the company's online platforms, e-commerce
strategies, and digital marketing efforts.
vii. Finance and Accounting: This department oversees financial operations, including
budgeting, financial planning, accounting, and reporting.

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viii. Human Resources: The Human Resources department is responsible for recruitment,
employee training and development, performance management, and ensuring a positive
work environment.
ix. Legal and Compliance: This department handles legal matters, regulatory compliance,
intellectual property protection, and contractual agreements.

4. Regional Structure: Swarovski operates in various countries and regions around the world. To
manage its international operations, the company may have regional structures with regional
managers responsible for overseeing business activities in their respective regions. This
structure allows Swarovski to adapt its operations to local market conditions and customer
preferences.
5. Employees: Swarovski employs a significant number of employees across its various divisions,
departments, and regions. Employees work in different roles, such as design, manufacturing,
sales, marketing, and administration. The specific roles and responsibilities of employees may
vary depending on their positions within the company.

b) Partners of Swarovski
Swarovski, being a global brand, likely forms partnerships with local entities to support its
operations and market presence in different countries. These partnerships may include:
Local Suppliers: Swarovski may collaborate with local suppliers to source raw materials,
components, or specific production inputs required for their manufacturing processes. These
partnerships help ensure a reliable supply chain and may involve sourcing high-quality materials
from local sources.
Distributors: Swarovski might establish partnerships with local distributors who have a strong
presence and distribution network in specific countries or regions. These distributors help
Swarovski reach a broader customer base by leveraging their existing network and expertise in
local markets.
Sales Representatives: Swarovski may work with sales representatives or agencies that have in-
depth knowledge of the local market, customer preferences, and established relationships with
retailers. These representatives can promote and sell Swarovski products to potential customers,
providing localized sales support.
Consultants: Swarovski may engage consultants or advisory firms specializing in specific areas such
as market research, market entry strategy, brand positioning, or legal and regulatory compliance.
These consultants provide expertise and guidance to Swarovski in navigating the complexities of
foreign markets.

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c) Strategic alliance
1. Market Expertise: Swarovski may seek partners with deep knowledge and understanding of
the local market where they plan to expand. This can include knowledge of customer
preferences, market trends, cultural nuances, and regulatory requirements.
2. Distribution Network: Partners with an established distribution network can help Swarovski
expand its reach and access to customers in the foreign market more efficiently. Evaluating
the partner's distribution capabilities and network alignment with Swarovski's target market
would be important.
3. Brand Alignment: Swarovski may consider partners whose brand values and positioning align
with their own brand image. This ensures that the partnership enhances Swarovski's
reputation and credibility in the foreign market.
4. Resources and Capabilities: Swarovski would assess the resources and capabilities that
potential partners bring to the table. This can include factors such as production facilities,
logistical capabilities, marketing expertise, and financial resources.
5. Shared Objectives: Swarovski would aim to partner with entities that have aligned objectives
and goals. This includes a shared vision for the partnership, mutual understanding of expected
outcomes, and a commitment to working together towards common goals.
6. Cultural Fit: Swarovski may consider partners who demonstrate cultural compatibility and
understanding of the local culture. This can facilitate effective communication, collaboration,
and adaptation to the foreign market.
7. Legal and Regulatory Compliance: Ensuring that potential partners comply with local laws,
regulations, and ethical standards is crucial for Swarovski. This includes intellectual property
protection, adherence to labor laws, and compliance with relevant regulations.
8. Risk Assessment and Mitigation: Swarovski would conduct a thorough assessment of potential
partners to identify and mitigate risks. This can include evaluating financial stability,
reputation, operational risks, and potential conflicts of interest.
9. Relationship Building: Establishing open and transparent communication channels and
building strong relationships with partners is important. This allows for effective collaboration,
conflict resolution, and long-term success of the strategic alliance.

XVIII. Product and target market planning

a) Product concept identifying attributes, features, and customer benefits:
i. The product concepts:
Swarovski revolves around offering high-quality crystal-based products, including jewelry,
accessories, figurines, home decor, and more. Swarovski's products are known for their
exceptional craftsmanship, precision-cut crystals, and attention to detail. The company focuses on
creating luxurious and visually stunning items that appeal to a wide range of customers.

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ii. Identifying Attributes and Features:

1. Crystals: Swarovski products are adorned with precision-cut crystals that showcase brilliance,
clarity, and a wide range of colors. The crystals are a key identifying feature of Swarovski's
products, adding a touch of glamour and elegance.
2. Design Excellence: Swarovski places a strong emphasis on design excellence, collaborating with
renowned designers and employing skilled craftsmen to create aesthetically pleasing and
innovative products. Each piece undergoes meticulous design and production processes to
ensure exceptional quality.
3. Diverse Product Range: Swarovski offers a diverse range of products, including jewelry,
watches, accessories, home decor items, figurines, and more. This allows customers to find
items that suit their personal style and preferences.
4. Branding and Logo: Swarovski's iconic swan logo and branding are often incorporated into
their products, serving as a recognizable attribute and symbol of authenticity and quality.
iii. Customer Benefits:
1. Luxury and Prestige: Swarovski's products offer customers a sense of luxury, prestige, and
exclusivity. Wearing or owning Swarovski items allows individuals to showcase their refined
taste and appreciation for high-quality craftsmanship.
2. Exceptional Beauty: The brilliance and sparkle of Swarovski crystals add a captivating beauty
to their products. Customers can enjoy the visual allure and elegance that these crystals bring,
making a statement and enhancing their personal style.
3. Versatility: Swarovski offers products suitable for various occasions and settings. Whether it's
everyday wear, special events, or home decor, customers can find items that complement
their individual needs and preferences.
4. Gift-Giving: Swarovski products are often sought after as gifts due to their inherent beauty and
symbolism. They make for memorable and cherished presents, allowing customers to express
their love, appreciation, or congratulations to their loved ones.
5. Craftsmanship and Quality: Swarovski products are crafted with meticulous attention to detail
and adhere to high-quality standards. Customers can trust in the durability and longevity of
their purchases, ensuring that they can enjoy the products for years to come.

b) Product life cycle

The product life cycle concept provides a framework for understanding the typical stages that a
product goes through in the market, including introduction, growth, maturity, and decline. While
the specific durations and characteristics of each stage can vary, here's an overview of how the
product life cycle may apply to Swarovski products:
Introduction: In this stage, Swarovski introduces a new product to the market. This typically
involves significant investment in research and development, design, and marketing. The product
may initially have limited awareness and sales as it is introduced to customers. Swarovski would
focus on creating product awareness, targeting early adopters, and building distribution channels.

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Growth: As the product gains traction and customer awareness increases, it enters the growth
stage. Swarovski experiences a surge in sales and market acceptance during this phase. The
company expands its marketing efforts, strengthens its distribution network, and may introduce
variations of the product to cater to different customer segments. Competitors may also start
entering the market.
Maturity: In the maturity stage, Swarovski products reach their peak market penetration and sales
volume. The market becomes saturated, and competition intensifies. Swarovski aims to maintain
its market share by differentiating its products, offering new designs, and enhancing customer
loyalty through marketing strategies, customer service, and brand reputation.
Decline: Eventually, Swarovski products may face a decline in sales and market demand. This can
occur due to changing customer preferences, the emergence of new trends, or the introduction
of innovative competing products. Swarovski may decide to discontinue certain products or
refocus its efforts on new offerings with higher growth potential.
It's important to note that not all products follow a predictable life cycle, and Swarovski's specific
products may have varying life cycle patterns based on factors such as market dynamics, product
category, and innovation. Swarovski's ability to innovate, adapt to changing market conditions,
and introduce new product lines will influence the life cycle of its products in the market.

c) Target market

The target market of Swarovski can be described by considering various characteristics of potential
customers, including geographic location, demographics, media habits, consumer behavior
patterns, and lifestyle activities.
Geographic Location:
Swarovski has a global presence and targets customers in various countries and regions. Its
products are available in major cities worldwide and through online channels, allowing access to
customers across different geographic locations.
iv. Demographics:
1. Gender: Swarovski's target market primarily includes women, although the brand also offers
products for men.
2. Age: The target age range varies depending on the product category. Swarovski appeals to a
broad demographic, including younger customers seeking fashionable and trendy jewelry, as
well as older customers who appreciate timeless elegance.
3. Income Level: Swarovski products are positioned as luxury and high-end items, appealing to
customers with varying income levels, from mid-range to affluent.
v. Media Habits: Swarovski employs various marketing channels to reach its target market.
These channels may include:

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1. Fashion Magazines: Swarovski often advertises in fashion publications that cater to its target
audience.
2. Social Media: The brand has a strong presence on social media platforms, such as Instagram,
Facebook, and YouTube, where it showcases its products, collaborations, and brand stories.
3. Online Advertising: Swarovski may utilize online advertising platforms to reach potential
customers while they browse the internet or engage with relevant content.
4. Influencer Marketing: Collaborations with influencers and celebrities who align with
Swarovski's brand image are utilized to reach a wider audience.
vi. Consumer Behavior Patterns:
1. Jewelry and Accessory Enthusiasts: Swarovski appeals to customers who appreciate and value
jewelry, accessories, and decorative items that exhibit elegance, craftsmanship, and unique
designs.
2. Gift Buyers: Swarovski products are often purchased as gifts for special occasions, such as
birthdays, anniversaries, or holidays, targeting customers seeking meaningful and luxurious
presents.
3. Trend-conscious: Swarovski stays attuned to fashion trends, appealing to customers who
desire stylish and up-to-date accessories that enhance their personal style.
vii. Lifestyle Activities:
1. Social Events: Swarovski's target market includes individuals who attend social events such as
parties, galas, and weddings, where they can showcase their style and accessorize their outfits.
2. Fashion and Beauty Enthusiasts: Customers interested in fashion, beauty, and self-expression
through accessories are likely to be part of Swarovski's target market.
3. Home Decor Enthusiasts: Swarovski's home decor items target customers who appreciate
luxury and elegance in their living spaces.

XIX. Conclusion
a) What are the successes and failures of the foreign market entry for the company?
i. Successes:
1. Global Presence: SWAROVSKI has successfully established a global presence and is recognized as a
leading brand in the crystal jewelry and accessories industry. The company has a strong presence in
numerous foreign markets, including Europe, North America, Asia, and the Middle East.
2. Brand Reputation: SWAROVSKI has built a reputation for high-quality craftsmanship and precision-cut
crystals, which has resonated with consumers worldwide. The brand is often associated with luxury and
elegance, attracting a loyal customer base.
3. Product Diversification: SWAROVSKI has expanded its product portfolio beyond traditional crystal
jewelry and accessories to include home decor, figurines, lighting, and even collaborations with high-
fashion designers. This diversification has allowed the company to appeal to a wider range of customers
and expand its market reach.

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ii. Failures:
1. Counterfeit and Imitation Products: SWAROVSKI has faced challenges with counterfeit and imitation
products in various foreign markets. These lower-quality replicas can undermine the brand's reputation
and affect sales. The company has invested in anti-counterfeiting measures to combat this issue, but it
remains an ongoing challenge.
2. Pricing Strategy: SWAROVSKI's positioning as a luxury brand has often resulted in higher price points
for its products. In some markets, this premium pricing strategy may limit its customer base and face
competition from more affordable alternatives.
3. Cultural Adaptation: Adapting to different cultural preferences, tastes, and market dynamics can be a
challenge for any company expanding internationally. SWAROVSKI has encountered varying degrees of
success in different markets, with some facing difficulties in fully understanding and adapting to local
consumer demands and preferences.

b) What are your recommendations to the company and/or similar industries

considering foreign?
iii. some recommendations that can help them navigate the challenges and increase their
chances of success:
1. Market Research: Conduct thorough market research to identify potential target markets.
Evaluate market size, consumer demographics, purchasing power, cultural preferences, local
competition, and legal/regulatory frameworks. This will provide valuable insights for making
informed decisions about market entry strategies.
2. Localization Strategy: Develop a localization strategy that considers the unique cultural, social,
and economic factors of the target market. Adapt products, marketing messages, packaging,
and pricing to resonate with local consumers. Localization efforts should also extend to
customer service, distribution channels, and after-sales support.
3. Partner with Local Experts: Collaborate with local partners, distributors, or agents who have a
deep understanding of the target market. Local partners can provide valuable insights, help
navigate legal and regulatory hurdles, and assist with distribution networks. They can also help
in building relationships with local retailers or securing strategic partnerships.
4. Intellectual Property Protection: Prioritize intellectual property protection to safeguard the
brand's reputation and prevent counterfeiting issues. Familiarize yourself with the intellectual
property laws in each target market and take appropriate measures to register trademarks,
patents, and designs. Work closely with legal experts to enforce intellectual property rights.
5. Pricing and Competitive Analysis: Conduct a thorough analysis of pricing strategies and
competitive landscape in the target market. Consider the local market dynamics, competitor
pricing, and consumer purchasing power to determine optimal pricing strategies. Balance the
brand's positioning with affordability to attract and retain customers.
6. Supply Chain and Logistics: Establish efficient and reliable supply chain and logistics networks
to ensure smooth operations and timely delivery of products. This may involve setting up local
manufacturing facilities or partnering with local suppliers to reduce costs, increase flexibility,
and mitigate risks associated with transportation and customs.

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7. Marketing and Branding: Develop a comprehensive marketing and branding strategy that
aligns with the target market's preferences and channels. Leverage both traditional and digital
marketing platforms to raise brand awareness, engage with consumers, and drive sales. Utilize
social media and influencer marketing to reach the target audience effectively.
8. Customer Service and Support: Provide excellent customer service and support in the target
market. Understand the local customer expectations and preferences for after-sales support,
warranties, and returns. Adapt customer service processes and channels to cater to the needs
of the local customers.
9. Continuous Evaluation and Adaptation: Regularly evaluate the performance of your foreign
market entry strategy and make necessary adjustments. Monitor sales, customer feedback,
market trends, and competition to identify opportunities for improvement. Be agile and ready
to adapt strategies based on market dynamics.
10. Regulatory Compliance: Comply with local laws, regulations, and standards in each target
market. Ensure that products meet local safety, quality, and labeling requirements. Stay up to
date with changes in regulations that may impact business operations or import/export
processes.

c) Why we need companies like SWAROVSKI？

Swarovski is loved and admired across the globe for its exceptional designs, attention to detail and
unique product offering. Each one of its items tells a story and the company has continually
innovated over the years to expand its product offering and appeal to an ever-growing market.
iv. The reason that we need companies like SWAROVSKI is crystal clear:
1. Innovation and Creativity: Companies like SWAROVSKI bring innovation and creativity to their
industries. SWAROVSKI's precision-cut crystals and unique designs have set new standards and
inspired other companies in the jewelry and accessories industry. Their focus on craftsmanship
and continuous product development pushes the boundaries of creativity and keeps the
industry vibrant.
2. Brand Image and Prestige: establish a reputation for quality, craftsmanship, and innovation,
attracting customers who value luxury and exclusivity. These brands become symbols of status
and style, enhancing the overall perception of the industry and the products they offer.
3. Market Competition and Choice: foster healthy market competition, which benefits
consumers. By introducing unique products, innovative designs, and quality craftsmanship,
they create differentiation in the market and offer consumers a wider range of choices.
Competition encourages companies to continuously improve and innovate, driving industry
growth and providing customers with better options.
4. Corporate Social Responsibility: Companies like SWAROVSKI often prioritize corporate social
responsibility (CSR) initiatives. They engage in sustainable practices, ethical sourcing, and
community involvement. By taking responsibility for their environmental impact, supporting

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local communities, and advocating for social causes, they contribute to a more sustainable and
inclusive society.
5. Industry Influence and Collaboration: Companies like SWAROVSKI often have a strong
influence on the industry. They collaborate with other businesses, designers, and artists,
fostering creativity and innovation across different sectors. Their expertise and reputation can
shape industry trends and set benchmarks for quality and craftsmanship.
In simple words, we need a business that brings new possibilities to the world with credibility
endorsed by its brand reputation - a worldwide reputation which cannot be built overnight.
Looking at products that are no longer available, I could almost see how they shine like art pieces
somewhere around the world, casting light into one's daily life.

Let beauty take flight with this colorful

butterfly pendant from the Idyllia family. Its
delicate wings are formed from small,
shimmering crystals in ...

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XX. References:
Swarovski. The history | 925CRAFT Blog (silvexcraft.eu)
Swarovski International Holding AG - Company Profile, Information, Business Description,
History, Background Information on Swarovski International Holding AG
(referenceforbusiness.com)
Microsoft Word - Brand and Company Analysis hjemmeside.docx (charlottemeincke.dk)
Swarovski Crystal SWOT Analysis, Competitors & USP | MBA Skool

Swarovski Crystal Marketing Strategy & Marketing Mix (4Ps) | MBA Skool

Swarovski_Sustainability_Report_2019.pdf

Secrets to Swarovski’s Marketing Strategy (8ways.ch)

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