Case Study : Victorinox

A much-loved product and a favorite gift for men of all ages is the famous Swiss Army Knife, with its multiplicity of blades and chunky, practical styling. For trimming finger-nails, taking the stones out of horses' hooves, tightening screws, opening beer bottles and untying knots - Swiss Army Knives have a plethora of applications. Founded in 1884 as a cutlery workshop, the company started supplying soldiers' knives in 1891 and the "Original Swiss Army Knife" was patented in 1897, taking off in 1940 when it became popular with American forces. On its centenary, the company employed over 800 workers and generated 80m Swiss Francs in revenues. In 1989 the decision had been made to enter the watch business, and ten years later the travel gear market, supported by sales offices all over the world. Owned by the Victorinox Foundation, this family business reinvests much of its income to preserve its independence and secure jobs for its workers for the long-term. One of the company's biggest crises came with September 11^th, 2001, when as a counter-terrorism measure, Swiss Army Knives were no longer sold to be carried in cabin baggage at airports around the globe. Overnight, Victorinox's profits slumped by over 30%. Sales to the corporate market as branded gifts for clients also plummeted, as security restrictions made such souvenirs unacceptable. Sales of pocket tools have never recovered to pre-9/11 levels. However, the development of new products and markets was quickly accelerated and an exclusive retail operation enhanced the company's high quality brand image, with brand stores in prime locations in London, Paris, Geneva, New York and Tokyo, supported by in-store outlets. With all products carrying the famous Swiss flag logo, the company maintained an upward revenue trajectory and was even able to win a contract for 75,000 new soldiers' knives for the Swiss Army in 2008 - its original product.

Question 1: What was the most important factor in the company's later success after the crisis?

Question 2: Apply the VRIO (value, rarity, imitability, organization) framework to the company.

Question 3: How do you advise business strategists to prepare for crises?

short answers please