The Rolex Problem

In recent years, the global demand for Rolex watches, especially the stainless-steel sports models, had dramatically increased, resulting in a supply shortage worldwide. The shortage in supply further increased the desirability of Rolex watches, leading to a significant increase in demand.

The Rolex Problem

Rolex has been one of the most successful watchmakers in the world. In 2020, Forbes assessed Rolex as the most valuable and recognizable watch brand, with a valuation of $9.5 billion.

In recent years, the global demand for Rolex watches, especially the stainless-steel sports models, had dramatically increased, resulting in a supply shortage worldwide. The shortage in supply further increased the desirability of Rolex watches, leading to a significant increase in demand. High demand coupled with low supply increased prices in the gray and secondhand markets.

To solve the supply shortage of its popular models, what should Rolex do? Should it 1) increase the supply of its popular stainless-steel sports models and/or 2) increase the retail price of these models?
Should Rolex create its own e-commerce channel like other watch makers in order to control prices?

Time
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