Swatch threaten to stop deliveries of parts to competitors....

As a subscriber to another watch forum watchprosite - I was alarmed at a posting on the main page under Horological meanderings/Editors Picks -   whereby Mr Hayek - the president of Swatch group has treatened to withdraw the supply of parts to certain competitors - what it calls 'assemblers' - rather than what is considered bona fidi watch manufacturers - basically,its a swipe at the many lesser names in the Horological industry who are not investing in developement and set up costs,but expect Swatch to make all the capital investment,whilst they divert revenue to marketing.
Basically,this is not a shock,they have fired this particular canon before,but this time Mr Hayek seems determined.My concerns lie less with the likes of PP,VC and AP - but as an owner of a Cartier and Omega watch,I have relied upon a very good watch repairer using accessible and genuine parts to repair my vintage timepieces - if this supply is cut off,or curtailed in the future,my concerns are that I will be driven into the arms of AD's for repairs,which not all of us can afford,in either time,or money - What do other members think who have other vintage non - VC pieces ?
There is also a strong feeling that if this 'cull' does affect lesser 'assemblers' - that it is no bad thing either - discuss !
a lot of bluff...
12/22/2009 - 00:45
Hayek is outspoken, he saved the Swiss watch industry; he knows it and wants to remind the world once in a while just incase any one has forgotten. He wants to stop delivering components such as springs; balances, hands, shock protection etc... to the industry (excluding a selected number) however the production capacities of these firms is way above what the Swatch Group brands can absorb so outside clients is an economical necessity. Lets also not forget that he has either a monopoly or at least a "dominat position" meaning the industry is dependent on these suppliers, refusing to supply or even worst refusing to deliberately supply those not considered worthy can raise some serious competition law issues. I really don't think this will happen in the near future... 
Re: Swatch threaten to stop deliveries of parts to competitors....
12/22/2009 - 05:55
I agree with Alex. I can imagine that a big chunk of ETA's (Swatch group) sales come from supplying users outside the Swatch group and that discontinuing supplies to these clients would probably result in an excess of production capacity. Although Mr. Hayek does not like the idea of some of his clients "not sharing in the development costs", I believe all parts supplier pass on their own development costs to its buyers anyway as part of its pricing so the development costs "are shared" albeit indirectly.  Besides, having a wide customer base is a big plus in developing anything new (advantage of volume production). It will be interesting to see how things unfold from next year... Just my two yens worth. Cheers! Kazumi