The SIMM Smartwatch and the Internet of Things: Designing a Business Model Harvard Case Solution & Analysis

The SIMM Smartwatch and the Internet of Things: Designing a Business Model Case Solution


SIMM smart watch company was a well-known brand in Silicon Valley. It had a variety of luxurious wristwatches. The rise of internet and Smartphones has overtaken the benefit wristwatches enjoyed. Many places like Smartphone, personal computers, billboards, and even refrigerators that contain a small clock on them. Only a few users of wristwatches were left. Moreover, the demand for wristwatches had also dropped down by 2010.

Dan, an expert executive of SIMM, has envisioned the innovation of the wristwatches by preceding the rapid technology of computer to the personal web data of a person on the wrist. SIMM labs had established the model that accounted for the experience of remarkable content in 2012. Moreover, the digital innovation was carried out with the partnership of Foxconn and 25 employees of the company located in Silicon Valley.

Problem Evaluation

SIMM lab was the pioneer of this new type of wristwatches. Moreover, SIMM has manufactured it with the partnership of Foxconn Silicon Valley. An incredible prototype was developed by Dan. Even though, the SIMM strategy of the core product was not successful in its technological advancement. Dan was worried about what strategy he should adopt in order to succeed with this technology. Moreover, he was also concerned about the steps that should be taken.


The industry analysis for SIMM is discussed below:

PESTLE Analysis

Political: Politics of the US is stable. There is a freedom of investment in the country. Companies can easily start their businesses.

Economical: The country is economically established. There are several races reside in the country that migrated from different regions. Moreover, companies are developing in the country.

Social: The social environment of US is composed of three races. Moreover, the people adapt quickly to its nature. The purchasing behavior of the technologies is also positive.

Technological: The US have been a pioneer in many technologies like microwave, air conditioner, super computers and much more. Hence, it is technology orientated country.

Legal: Legal environment of the US is restricted to the some extent. Hence, investors feel restricted by establishment when licensing.

Environment: Many companies strive towards clean the environment of the country. Thus, it has developed a clean environment.

Porter Analysis

Porter’s five forces analysis below will demonstrate the condition of the wristwatch industry in Silicon Valley.

Bargaining Power of Buyer

Bargaining power of the advanced wristwatch technology is expected to be low. Consumers are initiators that respond to innovations quickly. Moreover, it has many usages in the sports and healthcare sectors. There are a few competitors in the market. Hence, the buyers are not at ease to switch to others.

Bargaining Power of Supplier

Bargaining power of industry in which SIMM is established is expected to be high. There are many software companies from which, the companies can purchase. Hence, the companies can switch easily to other suppliers.

Threat of Substitute of Product

There are few competitors in the market. However, there are the many technologies like Smartphone, Tablets, and IPods with which customers can easily get benefit. Thus, the threat of substitute to product is high in the industry.

Threat of Rivalry

There are few companies, competing in the industry. Moreover, the users are not able to easily switch to the other companies because they can have higher prices and ambiguity in the quality. Innovation is also overwhelming in the industry. Thus, industry is has a low threat of rivalry...............

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