The Japanese technology of battery-powered quartz made a strong competition in the Swiss watch industry and produced a significant impact in early 1980s. Blancpain, a watch company that once made mechanical watches, but it had been out of the business since 1961 and ultimately the company was purchased by Jean-Claude Biver for $16,000 in 1982.
After a decade of this successful acquisition, Biver sold the Blancpain to the Swatch Group Chairman, Nicolas G. Hayek for $43 million. Hayek agreed to have Biver stay on and later on Hayek put the responsibility on Biver to take up Omega, the once well-known but ailing watch company. Biver efforts led the revenue to incline from $350 million to $900 million between 1995 and 1999.
However, present scenario indicated that Biver might become the next CEO of Swatch Group after the retirement of Hayek but in early 2000 Biver realized about the lack of opportunity to become the next CEO. Biver faced the decision dilemma that whether he should again undertake the reins of a small but the struggling watch company, Hublot, with taking retirement himself from the Swatch Group.
The case demonstrates the path taken by Biver to lead Blancpain and Omega and how his efforts transformed the entire Swiss watch industry to a much stable position. It also describes the leadership style used by the Biver, which sometimes perceived him as impolite among his employees, but his vision produced loyalty from his colleagues.
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