The following is the analysis of the luxury watch industry which is depicted in the form of the Porter’s five forces analysis.
The products that are manufactured under the luxury brands of watches are hand made custom items. The Rolex as a result is a very expensive and high end brand. The power of the consumers in the market as a result is significantly high as they drive the demand of the watches in the market through the value and prestige that they assign to the brand.
The bargaining power of the supplier is also significant for the companies in the industry as the high end products require specialized material, special labor and highly specific raw materials that go into manufacturing a watch. The company as a result has dedicated supplier’s form which it purchases the raw materials and resources that go into manufacturing a luxury watch. This depicts the significant bargaining power suppliers who cater to the makers of the luxury watches in the industry