Running header: ROLEX

Rolex

[Name of the Institute]

Rolex

Introduction

The wrist watch industry is highly diversified and consists of products which have a completely different target markets. Majority of the companies; manufacturing wrist watches generally adopt the volume based and low cost approach, where the plan to produce a low cost product which will be sold to a vast global market. This is a very popular strategy, as the companies do not have to invest considerably on the related marketing and branding initiatives. The phenomenon of the global customer market also makes this low cost strategy a very attractive and lucrative initiative (Glasmeier, 2000, pp. 102). Even though the industry for the wrist watches consists of products which can be purchased by the customers at very reasonable costs, there also exist in the same industry certain brands which offer premium products that are sold at very high costs. The demand for these high priced products exists due to the brand value of these wrist watch manufacturers, and the values that the customers place with the products. Although the majority of the wrist watch market in the global perspective is generally operated on the basis of a low coast and low quality basis; there are also a limited number of companies which produce highly premium luxury wrist watches.

Rolex Watches 'Company Background'

Hans Wilsdorf and his brother in law Alfred Davis, initially established the wrist watch making company Wilsdorf and Davis. This company later became the Rolex Company in 1905, situated in London. Wilsdorf was a visionary who had a long term dream to convert watches in portable and high quality products. At the given time, the wrist watches were not a part of the high class society, and such products were generally considered very inaccurate and low quality. However the visionary founder had realized that the trend for high quality wrist watches will bolster in the future, and this is why he invested in the formation of the Rolex Company. The Rolex brand wrist watches are now considered one of the most prestigious and premium quality brands that exist in the contemporary global business environment. The name Rolex is effectively synonymous to attributes such as premium quality, culture and exquisite taste. In 1908 Wilsdorf officially established the brand of Rolex, by registering the trademark “Rolex' and opening a manufacturing facility and office in Switzerland. The facility was the realization of the dream that was envisioned by Wilsdorf, and it laid the source of one of the most iconic brands that exist in the modern business environment. The reason why I have chosen this company for this paper is the iconic nature of the brand, and its value in the global consumer market.

Discussion

Rolex Strategic Direction

The source of the brand value and the exclusive customer market that the company has obtained over it rich history, is the quality of the products and the emphasis on the company to symbolize each product. The company manufactures every product as a representation the personal characteristics and the attributes of the owners, ...