Swatch Group

Swatch Group saved Swiss watchmaking from extinction through portfolio strategy the industry thought impossible. In the 1970s-80s, Japanese quartz watches (Seiko, Casio) nearly killed Swiss mechanical watches - market share collapsed from 50% to 15%. Nicolas Hayek's 1983 merger creating Swatch Group executed a two-tier defense: mass-market Swatch watches competed on price and design against quartz, while luxury brands (Omega, Breguet, Blancpain) served collectors valuing craftsmanship over accuracy. This created a barbell portfolio - high volume at low margins, low volume at extreme margins - that Japanese manufacturers couldn't replicate. Swatch's $8B+ annual revenue proves that when technology disrupts your core, survival requires serving both the new market and the refuge niche simultaneously.