Chapter 4. The Marketing Environment

Rolex has a really strong team of competitors against them, brands such as AP, Omega, Patek Philippe and etc, try to dethrone Rolex from the leading position in the watch-making industry by creating new watches and improving older models every year at Baselworld.

To maintain the the competitive advantage of the brand, Rolex tries to innovate through marketing research making the watches better and substituting what costumers dislike about past models. The submariner 116610LN model carries a ceramic bezel instead of an aluminium one, the new "Cerachrom" is scratch proof unlike the older aluminium version that wasn't a unanimity among its current costumers.

Usually a person that goes after a Rolex has a higher purchasing power and can afford to spend more money without jeopardizing their budget, these people have the ability to purchase higher-priced necessities . In addition many people look into buying a Rolex watch due to his or her lifestyle, these days collecting vintage or high-end watches became a profitable and exciting hobby for many people.

When it comes to ethnic market Rolex is "The gorilla in the industry" although it has lost space for brands such as Omega in the Chinese market (one of the biggest markets in the world), especially with the younger generations, Rolex still maintains the hegemony over sales.

“From a pure branding perspective, Omega have a very, very long way to go to get anywhere near Rolex,” said Jez Frampton, chief executive officer of brand consultant Interbrand. Interbrand estimates the Rolex brand’s value to have fallen 7 percent last year to $4.6 billion, making it one of the world’s top 100 brands. Omega isn’t within the top 150, Frampton said.

Chapter 3. Ethics & Social Responsibilty

Since 1976 Rolex has been playing a role of social responsibility through the "Rolex Awards".

A program that finances projects focused on improving lives and protecting the world's natural and cultural heritages. These projects touch all aspects of humanity by expanding knowledge or improving life on the planet.

Every two years an international jury of independent experts, which typically includes, scientists, educators, doctors and so on, nominates the Laureates. The award covers 5 areas:  applied technology, cultural heritage, environment, exploration and discovery, and science and health.

Dave Irvine is one example of how the Rolex Award helps people all over the world. He developed low cost LED's lighting sets after seeing kids struggling to read in a gloomy classroom in Nepal. Through his foundation "Light up the World" he has lit up the lives of over 700,000 people, installing around 30,000 LED's in poor homes and schools across 54 countries. Rolex funds were used to broaden the organizational structure of the foundation. 

Another example is Mr.Makoto Murase, also know as "Dr. Skywater.  His mission is to 

convince city-dwellers that rain is a good thing, not a water-disposal problem. He 

successfully change the regulations to require all large, new buildings to harvest sky water. More  than 500 buildings and houses in Sumida have installed his system. The water collected from rooftops can be used for gardening and etc.

Also in rural Bangladesh he's distributing low tech and low cost sky water  harvesting technology to spare families from water-borne infections and contaminated water.

Social responsibility plays a big role in the company. Over the years Rolex nominated 130 Laureates and support inspiring individuals to achieve great social and ethical goals all over the world. By promoting this award Rolex demonstrates responsibility and concern with the world's social and environmental issues, those can be viewed as an opportunity to help the world and build value at the same time.

Chapter 2. Strategic Planning for Competitive Advantage

Rolex is an established and respected company with over a 110 years as one of the top watch making companies in the entire wold. The company is well know for its innovations in the watch making industry, such as the first waterproof model the "Oyster" in 1926, the first watch to show two time zones at once the "GMT Master" in 1954 and the first watchmaker to earn the "chronometer" certification for wristwatches. That itself would give Rolex the "Competitive Advantage" in this industry, but Rolex goes beyond.

As a definition, "Competitive Advantage is a set of unique features of a company and its products that are perceived by the market as significant or superior to those of competition".

Rolex is committed to using the best technology and material available in the market to make its time pieces. "The Rolex Way" exemplifies the type of effort the company puts in making the watch a "perfect" watch, better than anything out there.

The Rolex Daytona, is one of  the top selling watches for Rolex. Made of 904L stainless steel, powered with the 4130 self-wind movement, reliable and efficient, this watch speaks for itself.








I believe that one of the product differentiation is the status that Rolex can bring with its name.  No one else has a bigger collection of "hits" in the watchmaking industry like Rolex does. Not to mention the excellent costumer service provided by the employees. Rolex is synonymous with "accomplishment" or "achievement." For example, when a guy graduates from college or on a 30 year marriage anniversary, a Rolex watch is the gift to give or receive.








Rolex are geniuses of their "marketing objective" and also their "target market strategy", the company promotes its products at high-end events because it targets their ideal customer economically and socially. Events like " The Australian Open", "Shanghai Rolex Master", "The U.S open" (golf), "Rolex Grand Slam of Show Jumping" (equestrianism) are attended by people with influence and purchasing power to boost the company's sales and popularity.

In conclusion, Rolex is a reigning leader in strategic planning making the company the top of watchmaking industry for well over a century.