Compromises in performance and quality threaten Swiss companies

Swissness continues to be a popular marketing tool for Swiss companies.Of the 170 companies participating in the Swissness Tester - many of them internationally active - a third say that Switzerland's origin is central to their success, while another 50% say they benefit from this origin. Confidence in Swiss performance, on the other hand, is suffering. Whereas in 2008 60% were still convinced that Switzerland had become more efficient and stronger in recent years, in 2016 this figure had fallen to just 45%. Around 18% of companies have relocated activities to Switzerland in recent years - actually a pleasing figure. But while only 9% of Swiss companies outsourced parts of their value creation in 2008, this figure has already risen to 15% in 2016. If this trend continues, more companies will soon be relocating activities abroad than vice versa. According to their own assessment, the Swiss companies participating in the study are still well positioned in their markets: In terms of performance and competence, more than a third rank their company among the top, and more than 80% see themselves at least in the top third; in terms of quality and reliability, more than a third describe themselves as uncompromising and leading. The majority cultivates quality and reliability to an above-average degree, but also makes compromises.Swiss companies focus more on Swissness despite doubtsCompared to 2008, more Swiss companies state that they consistently address Swissness as a cornerstone of communication, while a third use the origin of Switzerland only unsystematically in their communication, and another third indirectly or not at all. But as before, only one third of the companies involved make targeted use of Swissness in their communications - and this despite the fact that a far larger proportion of the companies surveyed generate over 50% of their value added in Switzerland. A gap therefore seems to be opening up between companies that are increasingly focusing on Swissness and those that are not.Hardly any adjustments in price after appreciation of the francOverall, Swiss companies appear to be within their capabilities in terms of price. Around one third of the companies are at the top of the market in terms of price. If we add the assessment of performance and competence, we can conclude that around one third of Swiss companies are positioned at the top of the market in terms of both performance and price. In 2008, this was still different: many Swiss companies had a price that was too low compared to their performance. With the appreciation of the franc, this has now been corrected - also because most companies did not adjust prices downward. Overall, the margin situation of most companies abroad is likely to have worsened, as only 16% were able to raise their prices compared with their competitors despite the appreciation of the Swiss franc.Key finding: compromises in performance, quality and reliability threaten Swiss companiesThe evaluation of the results shows that more and more Swiss companies are willing to compromise on performance, quality and reliability. A development that is dangerous for the companies as well as for the Swiss brand.The following conclusions can be drawn for Switzerland as a business location as well as for the companies operating here:- Switzerland continues to be an environment for top-level companies, but more and more companies are willing to make compromises. The contribution to the positive perception of the Swiss brand is declining. Nevertheless, many companies still benefit from it.- The targeted communication of the origin Switzerland pays off for most companies, but measures on the surface cannot save the trust in the brand Switzerland and thus in Swiss companies in the longer term.-Swiss companies that offer top performance can enforce prices corresponding to the level even one year after the appreciation of the Swiss franc.This result is a warning: On the one hand because of the clarity of the loss of trust in Swiss value creation, quality and reliability, on the other hand because of the consequence to outsource activities abroad. Swiss Brand Experts reads from this result an increasing shear movement. On the one hand, a group of companies with a clear commitment to Switzerland as a business location. On the other hand, there is a whole series of companies that are increasingly superficial about Switzerland as a location, that make strong use of the reputation of Switzerland as a country of origin in terms of communication and pricing, but are increasingly shifting value creation abroad.Five recommendations for dealing with the Swiss originEspecially for a location like Switzerland, which is associated with higher costs, it is vital that the companies that rely on it bring the added value they have created to bear in the market and also assert it in terms of price. Only in this way can they sustainably develop their top performance and set themselves apart from the competition.Derived from these results, five recommendations for Swiss companies:1. The Swiss brand is one of the most sought-after sender brands in the world. 2. only uncompromising quality and top performance match the Swiss origin. In the competitive global market, customers expect this level and measure Swiss companies against it. Those who do not live up to this expectation not only damage the Swiss brand, but also their own company.3. Swiss origin obligates - also in the legal sense. 4. the price level should correspond to the relative performance level in the market. The high quality level of Swiss companies usually means higher costs - a higher price is therefore economically necessary and justified.5. It is not the Swiss origin that justifies a higher price, but the better performance and the additional effort required for it.Go to the Swissness tester from Swissbrandexperts. here.