A.Lange Harvard Case

EXECUTIVE SUMMARY:

A. Lange & Söhne is a luxury watchmaker based in Glashütte, specializing in the design and production of high-end mechanical watches. The company fuses tradition with innovation and is well known in the industry for its perfection and precision. Their products are hugely popular among timepiece collectors.

Presented in the case was their issue with balancing exclusivity and profit generation. Demand is certainly rising for their products as the segment expands and the brand becomes more desired, should they produce more to capture this demand or remain with their current volume to create a concept of scarcity?

The main recommendations of this case will be:

Build brand awareness tastefully. This will be used to address the core branding issue of lack of awareness in the general public and prospective customer’s eyes. Awareness is the first step to making a sale, the brand and its masterpieces should be shared with the right people.

Be more aggressive with pricing decisions. To address the issue of profitability especially in the high end product lines.

Release several editions of high-end lines. A creative way to maximize profit for the most desired watches of A. Lange & Söhne.

A. Lange & Söhne’s success can be largely attributed to their product expertise and the perfect integration of their key values. They have the great potential.

BACKGROUND:

History of A. Lange & Söhne:

Lange & Comp was founded by F.A. Lange in 1845 in the poor village of Glashütte. His pocket watches were known for their quality craftsmanship and high precision. The family business passed down throughout the generations receiving critical acclaim until 1948 when the communist authorities merged it with six other watch companies. After the reunification of Germany in 1989, Walter Lange, the great grandson of the legendary watchmaker decided to continue on with their legacy and aimed to make the world’s best watches. He registered Lange Uhren GmbH in 1990 and established the company in Glashütte. (Thomke, Beversdorfer, 2017)

Walter had a vision to create perfect watches with innovative mechanisms and complete in house craftsmanship. By hiring the best and most dedicated watch makers and apprentices, he made sure that everyone in the family like company had the same passion for perfection as him.

This was the beginning of A. Lange & Söhne.

Business Model:

In preparation for the first product releases from the company, they knew that they needed to determine the fundamental brand values and unique style that will be known as A. Lange &