Ch. 11- Developing and Managing Products

Rolex has been around for over 100 years. As we discussed before, Rolex introduced many new technologies and products in the early 20's. Over the years, the company kept pretty much the same portfolio of watches while constantly updating the past models - Quality modification.

PLC  - Product Life cycles:

Introductory Stage:

Rolex slowly introduced watches to the public rather than a full line at once. Because the brand was released in the beginning of the 20's everything was a bit slower than today. Only after 40 years of its creation, Rolex reached the the brand's 100,000th officially certified chronometer watch. Although by that time the word on Rolex quality had spread already.

Growth Stage: 

After being a successful during its introductory years, Rolex establish a name for itself as a reliable and precise brand. Always innovating, the brand became a pioneer in various aspects in the industry. Around the 50's, Rolex increased its product line introducing watches such as the Submariner, Milagauss and GMT.  As a result, sales increased significantly and the brand gained global recognition. Competition also increased, with brands such as AP, Omega and Patek growing fast as well.

Besides that, Rolex invested heavily in advertising.

Maturity Stage:

Rolex still is at the top of the chain in the watch industry. Although, the company has lost some ground in markets such as Asia, where the product is viewed as an "old people" watch, and the younger and richer generation prefer brands such as Omega.
 I don't believe Rolex reached maturity stage yet and will not at anytime soon. Rolex is the biggest watch company and most well know for over 100 years. Its too prestigious and its items still are desired by many.

Decline Stage:

Some models lost appeal to the current market. Watches smaller than 38 mm are not as appealing as before. As a strategy Rolex made smaller models bigger. One example is the Oyster Perpetual, that is now available at 39 mm.