Seiko Swot Analysis

Table of Content


SWOT is an acronym of Strength, Weakness, Opportunity and Threats that are essential to SEIKO Holdings Corporation and those various contingences of Sub Corporation across the worldwide in order to track down the company’s management strategic performances. This SWOT analysis is identifying the internal matters (Strength and Weakness) and external matters (Opportunity and Threats) for SEIKO Holdings Corporation to achieve their objectives and exclusive goals which they had never done before that.

SWOT Analysis can help management to discover what business does better than other contingency companies. Besides that, various companies included SEIKO want to become successful in their management by going through SWOT Analysis environmental scanning tools. As these tools will indulge better performances on how does the company integrating cooperatively with the formulation of internal and external factors, which are Strength, Weakness, Opportunity and Threat. A good fit maximizes SEIKO’s strength and Opportunity and minimizes their Weakness and Threat will generate powerful implications towards the company’s future.

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Thus, a well know defined in SEIKO Holdings Corporation needed to be discovered further in their SWOT analysis as these matters are important to the corporations. The following SWOT analyses for SEIKO are as below:


SEIKO provides a high standard of innovative and Research and Development towards technological based in watches. As for research based, we found out that SEIKO contribute a high standard of innovation and Research and Development (R&D) towards technological based in watches.

SEIKO watches lead the world energy efficient watch making throughout the world who those others companies are not expert at it. Since their continuation of Research and Development by those expertise’s engineering in SEIKO watches Corporation Inc. , they did contribute a higher level of productivity with an extraordinary innovative and creative based knowledge to sustain the corporation vision. For examples, SEIKO watches are produced with a highly based technology of energy saving plans for watchmaking in all its forms, such as Mechanical, Quartz, Solar Kinetic and Spring Devices known as SEIKO’S 4 TECHNOLOGY.

As one of the devices contributed is Spring Devices watches, contrast many of the outline branded products that uses 2. 5% power needed to run its famous 1969 predecessor with just 0. 25 watts. One of the quotes in their corporation for Spring Drive product is: “Others have tried to make such a watch, but only SEIKO has achieved it” – Spring Drive Technology Exclusive to SEIKO This proves for SEIKO that they contribute the enhancement of watches which have owned provided self-technology in their products.

This could lead them to a higher based productivity technology in watches which considered as their own strengths for the corporation. As SEIKO provides with an excellent leadership management, they are manage to pursue the SEIKO goals effectively and efficiently. SEIKO likely to be a strong based foundation in producing watches that gives advantages in the watch market based. Thus, vary competitors are agitated to compete with SEIKO are most common to be described.

SEIKO contributed leading watch manufacturer with the World first production of watches since 1969 till present (2011). Based on our research, SEIKO produce the first Quartz watch, named – “ SEIKO ASTRON” since 1969 and until 2010 they also produced the world’s first EPD watch with an active matrix system. As SEIKO have continues feedback from the users of SEIKO quartz watches, SEIKO able to rectify the problem easily with such supportive customers in the market. SEIKO main challenges to sustain the Quartz watch from time to time in their size of watch and resistance against shock and temperature change.

Since SEIKO able to contribute more and more innovative watches at a time, they able to improve the productivity of the quartz watch as their development is getting better and better in the future. This attribute towards their management system as they using the process of their system effectively and efficiently. From Input progressing till customers’ feedback in system process, they are able to come out with an extraordinary watches – such as Quartz watches, Spring Drive watches and etc that other competitors cannot compete with it. This will become their main strength in SEIKO Corporation in this international segment market.

SEIKO sustained and provided a Strong Brand Name in their entire corporation internationally from year 1881 till current year (2011) As SEIKO sustained their brand name with a high value of Goodwill or Patent, this will keep track down the company with a high brand equity value for SEIKO Corporation. SEIKO provides highly exclusive rights with producing such innovative products (watches) in the market, and this will indulge and increase the trustworthy of their customers as SEIKO gives a strong brand name inside the watches sector.

SEIKO is a branded watch that is obvious and easily to recognized the name of the SEIKO watches in the market. Due to strong brand name in the market, it would withstand their company performance to prevent any reimbursements from their customers. As customers believed SEIKO watches, they provide such products with high prices due to the excellence and strong branded watches in this modern era. This will become the company’s strength to compete with others competitors in this watches sectors.

Seiko- The recipient of innumerable awards. Seiko began their company from year 1881, in this 130 years, the company do a lot of innovation and improvement in their products. Their advance in the technology and the design has been recognized with many awards presented by the company’s leading authorities. The first award is the best mechanical chronometer of the Geneva Observatory Competition in year 1968. In year 1980, they won the Grand Prix at the Grand Prix de la Ville de GenA? ve. In year 1983, Seiko has been recognized by the Guinness Book of Records for their appearance that the world smallest TV.

And this watch is not only considered the smallest watch in the world, but also holds the title to watch television, first in the world. Seiko Watches, once again won the Grand Prix of the City of Geneva in 1990. In 2000, the Seiko Sportura watches Ultimate ‘Kinetic Chronograph was awarded the clocks of the year by Die Presse is a presse. de They received daily in Australia. – IEEE Milestone Award for his neighbourhood Seiko Astron in 2004. In 2006, the Spring Drive watch SNR005 project was named by Time magazine. They also received the Gold Award-wheel Uhren Magazine for their spring training in 2008 because the Spring Drive SNR011.

On November 18 2010, at the Grand Prix d’Horlogerie de Geneve 2010, the SEIKO Spring Drive Spacewalk Commemorative Edition was named the Sports Watch of the Year. The numerous awards that attained by Seiko has bring them a tough strength to compete with other competitors. This will bring them lots of customers because they trust Seiko can produce excellent and top quality watches


The market of Seiko is narrow After doing some research in Seiko, we found that the design of Seiko is not really attract for every level of people, and this does not fulfilled the requirements of the market. Based on the research of the market, the requirements of a watch should have good quality, water resistance, durable, the styling, functional, price range and the technology.

For examples, most of the youth will very pay attention on the new design of some watches, like amusing design, gaily-colored, special function that they never see before. But for Seiko, they lay stress on the technology, function and quality. So, the market of Seiko will become narrow and maybe neglect by some people. Other than that, Seiko only design for matured man and not for kids and adolescence.

Although the population of kids and adolescence that will purchase watches are small, but still got inconsequential people will purchase it. Since Seiko sacrifice the chances to design for this group of people, they lose the chances to make revenue. Besides, we can found out that Seiko will more focus on design man watches compare to woman watches. Nowadays, women are the group of consumers that can boost the sales because woman will use a watch to become a functional accessory instead of look at the time. So, ordinary the customers are man and the sales will become very limited if compare with other company.

This may become a barrier for Seiko as their market is getting narrow due to undifferentiated watches series compared with other company watches in the world. As a result, watches which are produced are lesser choices to the customers’ requirement and needs.

SEIKO performed inconsistent revenue with high costing of operating expenses in each different years Based on the income statement for the year 2006 to 2009, we found out that SEIKO performed year-by-year inconsistent revenue cum with high costing operating expenses for each different years.

A vary changes of costing of operating expenses affect the company performance easily as the company produce lower net profit from years to years. Management in SEIKO did not provide a controlling area to control their expenditures in their daily operation. Although SEIKO is a highly trademark with exclusive rights of branded products such as watches ,instruments and etc, but SEIKO need to undergo typical operational expenses which decreased most of the profits that are earned by the corporation.

For instance, SEIKO Holdings Corporation provided a medium portion of revenue at a range of 174,000 millions of yen to 230,766 millions of yen (Equivalent to RM5. 5 billion to RM7. 4 billion) in 2006 to 2009, but the company needed to repay their daily operating expenses and others miscellaneous expenses (Cost of Sales, taxes and etc) of totaling up to 130,000 millions of yen to 160,000 millions of yen each year. SEIKO performed revenues with high costing of operating expenses that derived the company to recover back the expenses each of every quarter of the year.

As SEIKO unmanaged to cope with uncertainty, thus SEIKO management need to reconsider their management reconstruction to rebuild back by using the management functions efficiently and effectively. Therefore, the financial intermediates problems such as reporting lesser revenue or higher cost of operating expenses seem to become barriers if SEIKO management did not perform better management functions well in the corporation.


Seiko and FC Barcelona seal a global partnership. Based on the information of the official website of Seiko, the company is officially announce that Seiko and FC Barcelona have just entered into a far-reaching and long-term partnership agreement in which Seiko is appointed as the Official Watch Partner of FC Barcelona and will benefit from marketing and visibility rights for a period of three years. For the company, this is undoubtedly a golden opportunity for Seiko to enhance Seiko brand name. As we know, FC Barcelona has always aimed high, winning its first ever competition in 1902 and reaching the final of the Copa del Rey the same year.

Its record of achievement in both national and international football is among the most distinguished in the world. So, FC Barcelona is a successful club team in world football, so the popularity between football fans and man is absolutely very high. After doing some research, we know that the customers of Seiko majority are man. Watching a football match is a hobby of most man. The SEIKO Sportura FC Barcelona Chronograph is the latest designed watch that may attract the man customers to buy and collect it as a football fans, and this will let more football fans feel interest about Seiko as this is a trend.

Seiko has intelligently used this opportunity to let more people to know their name. This will increase their sales efficiently. With this partnership deal, this will contribute by formulating their management strategic in order to achieve what they seem to work best.

Key Market growth in developing and emerging economies As we performed researches, the price of Seiko watches are slightly high if compare to the cost-leadership company. The emerging economy will lead to more people come into this segment.

Seiko contribute large segment market with a high emerging with other companies around the world. Seiko are vary according to their collaboration between companies internationally that could made both profitability in the contract of their business lifetime. When Seiko emerged with others company in the market, Seiko performed immense growth expansion each time collaboration occurred. As Seiko is performed differentiation strategy, they are able to produce high quality products with a high production material cost. Seiko need to work out with other companies to improve their sales in the market.

As Seiko periodically has the ability to produce high market portfolio with high branded quality products, this could lead to various contingent to emerge with present economics scale factors. Seiko emerged with various countries in the world that has its own corporation in each of every country such as Malaysia, USA, Australia , UK, Canada, and other more than 80 countries that already emerged in the present market. Since Seiko could differ with others company product, but their main key is that Seiko will periodically review the customer’s feedback, and this will lead them to more growth expansion in various contingent in this world.

Contribution towards growth expansion can able to develop Seiko performance into a greater wide perspective in the future. Thus, this will indulge a better opportunity to realize the corporation goals and vision.

New market for Seiko’s products Based on our research on Seiko Company, we can obviously found out that Seiko is a company that make great efforts to generate new technology or functions that can attract consumers and strengthen their position in this segment. From the information from Seiko official website, Seiko is trying to manufacture some technologies that haven’t done by other company.

This is because they do not want to eliminate by the highly competitive environment. For examples Seiko Ananta, It is the first SEIKO collection to showcase SEIKO’s high-grade mechanical watch making artistry. It is an exclusive collection of luxury timepieces with Spring Drive and high-grade mechanical movements. Other than that, The Seiko Velatura, Seiko’s marine collection, they association with the world of super-fast skiff sailing, that are 49er Class and 29erXX Class. Seiko successfully produce the 1st lighter, tougher and even more resistant to the elements. The case made from titanium, covered by the new hard coating.

More to the point, Seiko 2009 Arctura Kinetic Perpetual is a masterpiece of understated intelligence. It is a combination of aerodynamic design and kinetic energy that never see in other watches company. Their unique Kinetic Technology design also graces the Arctura chronograph for 2009.

The astonishing breakthrough of Seiko from technology, appearances and other section has brought the company some favourable circumstances. They can disengage a new market through introduce some new products with special specifications that other company that other company do not have. In consequence, when Seiko construct new products to the market, this will bring an opportunity to the company.


SEIKO had various agitated competitors in the watch market SEIKO had prolonged competitors of watch sectors in the international segment market, as this contribute more on various contingence of watches company are precisely competed with SEIKO branded watch. As SEIKO first production of Quartz watch, many competitors are trying to imitate the products which are capable for producing newly production of Quartz watch as same as SEIKO brand.

The main competitors in the watch market which are Rolex, Swatch, Omega, Polo, and even Casio become SEIKO competitors although Casio performed with only a Cost Leadership strategy, which produced a low production cost in watches. As Rolex watches are mainly produced a high based quality watch, this will rectify SEIKO to compete with their durability of their watches which are mechanistic watches or eco-environmental saving power watches. With such competitors in the market, SEIKO need to rebuild and reconstruct more new watches (products) which other competitors cannot make it. This actually derived as SEIKO’s main threats in the watch sectors.

SEIKO was forced by environmental pressures Recent years of 2011, Bloomberg reported that SEIKO had forced out by environmental pressure, which is highly magnitude earthquake happened in Japan, Tohoku Area. As the demand of the watches is increase yearly, but due to constraint of environmental situation, this could jeopardized the company’s entire performance throughout the year. The earthquake forced SEIKO to closed down one of its own factories which that factory able to contribute a greater sales in the future period.

Thus, it will decrease the demand of the watches of SEIKO in that particular area, which is called Tohoku Area, Japan. As a result, this may contribute higher refinement cost of repayments in reconstructing new building in Tohoku Area and this will intricate lesser developments from the area as they need time to recover back the economic situation during the fiscal year. Thus, a massive lost of revenue will occurred for SEIKO Holdings Corporation during the fiscal year period.

Seiko can be easily substitute by other’s brand watches Seiko is one of the manufacturers that produce excellent quality and high prerequisite watches. Seiko has many strong competitors such as Rolex, Swatch, Casio and etceteras. All of them compete intensively to get the attraction of consumers to consume their products. Watches normally is use to provide the time of day, giving at least the hour and minute, and usually the second. Most also provide the current date, and often the day of the week as well. Many people will consider the appearance and the functions of the watch. The strong competition in this segment causes Seiko has been threaten because it is easily substitute by other’s brand watches.

This is because the technology and the design of the watches update expeditiously in this dynamic environment. So, consumers will have more choices to choose what watches they want because they are many similar products that can be substitute.

The relative position of Seiko’s largest competitors – Citizen Seiko right now do not have real Japanese competitors, but the closest competitor was Citizen, their products have a near specifications and prices. But these two companies do not follow the same dedication to mechanical watches or watch movement technologies.

For most of the timepieces and even luxury one that Citizen makes, Seiko is a different creature altogether. First of all, Seiko’s kinetic drive is struggling with Citizen’s Eco drive. Whereas Citizen’s Eco drive utilizes solar conversion to charge an internal lithium battery, Seiko’s Kinetic drive uses a rotor similar to what is in an automatic mechanical to turn tiny motor generating electricity which is stored in an on-board capacitor which can run the watch for years on a full charge without any additional charging.

Seiko’s design requires more moving parts than Citizen’s but moving parts inside of a watch have been common since the first ever watch. There is also slightly more weight in Seiko’s energy generator design compared directly to the energy generator in Citizen. Overall these two methods of generating power for the quartz movements are very different, but the resulting shelf life between charges and performance are nearly indistinguishable.

But in year 2000, competition remained fierce at this time and watch makers from China and Switzerland were cutting into Seiko’s market share. Domestic demand was declining and Japan-based companies saw sales slide by as much as 20 percent. In response to market conditions, Seiko and Citizen Watch agreed to combine their sales and distribution efforts in order to cut costs. In a nutshell, Seiko has a tough competitor, that is Citizen, since their products are almost similar, they will always compare by the consumers, so for Seiko, this is a catastrophe for them.

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