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
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Business Model Canvas Part 2: Example
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
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
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
Notas del editor
SMH is vertically integrated and controlled with respect to production, R&D, sourcing and HR.