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MMD > Archives > April 1998 > 1998.04.14 > 01Prev  Next


Reuge Won't Supply Movements to Jobin
By Robbie Rhodes

In Digest 980412 I published an appeal for a noteur who could make
musical arrangements for Mr. Jobin.  Yesterday I prowled the Internet
and I found this address in the Swiss "Yellow Pages":

  Ed. Jobin AG
  Hauptstrasse 111
  CH-3855 Brienz
  SWITZERLAND
  tel 41-36-51-14-14
  fax 41-36-51-17-14

I also found a related news article which confirms that this company
makes music boxes.  The article, dated 31 October 1997, is at

    http://www.oberhasler.ch/oberhasler/97/86/86jobin.html

This is the publication web site of the electronic newspaper, Der
Oberhasler, CH-3860 Meiringen.  Thanks to MMDer Hauke Marxsen for his
assistance with this paraphrased translation.

Robbie Rhodes

 - - - - -

The Ed. Jobin company, of Brienz, Switzerland, which makes high-quality
music boxes and sells them world-wide, sees itself forced into cutting
twelve jobs.  A Swiss company with a monopoly-like position does not
want to supply Jobin AG with music box movements any more.  On Monday
morning [28 Oct. 1997] the firm's management briefed the personnel and
the media.

Founded in 1835, since 1860 Jobin AG has created high-quality
traditional music boxes.  The wooden cases are manufactured in their
own workshops, and the movements, to a large extent, have always come
from Ste-Croix, the homeland of the movement manufactures.

The music boxes have had just as many highs in their history as lows,
and that continues today.  Economic crises and competitive battles
among the makers of movements have resulted in some bankruptcies and
takeovers.  The number of manufacturers that can offer a complete
assortment of movements has finally dwindled to one firm: Reuge SA.

Years ago Ed. Jobin AG began to organize it's label, <<Jobin of
Switzerland>>, for the music boxes, and successfully applied new
marketing concepts.  The business developed both abroad and at home,
and in recent years doubled its output.

However, with increasing success, the supplier-side situation has
gotten worse.  Reuge SA, the only remaining manufacturer of the
high-quality movements and thus an actual monopoly, doesn't conceal
this success; nevertheless, both companies operate in the same market:
high-quality and traditional music boxes.

The first setback occurred in 1991, explained the Jobin management,
when Jobin was informed that Reuge would no longer supply two types of
movements.  Although difficult, this handicap was one they could
manage.  But Jobin can't easily accept the latest news -- that Reuge
will no longer supply four other types of movements -- because,
according to Jobin management, with the four large movements the
company achieves a turnover of 1.5 million Swiss Francs.

The speech given by Reuge for its decision is "concentration on the
production solely of music boxes and assured service".  This is
regarded in Brienz as "everything else except convincing," because
Reuge continues to make the identical movements but denies delivery to
others.  Besides its existing monopoly on high-quality movements,
Reuge seeks to realize a monopoly on high-quality music boxes, and
thus displace the only formidable competitor, <<Jobin of Switzerland>>,
concludes the management of Jobin.

Those at Jobin interpret the action of Reuge as an "illegal market
repression on the part of a monopolist."  Apart from the question
of competition legality, the residents of Brienz are tempted to
thoughtful astonishment over the circumstances of the public economic-
patronage of recent years, which seems to favor Reuge: todays layoffs
in Brienz are caused by job conservation in Ste-Croix (expressed with
a little exaggeration).  Legal measures against Reuge are under
consideration, announced Jobin management on Monday.

On the other hand, no one at Reuge knows about exploitation of a
monopolistic position.  It's not the only company which makes large
movements -- such music boxes were produced in Japan and China, and
these were likewise very good, explained a Reuge spokeswoman to Der
Oberhasler.  What's missing in the oriental products, however, is the
prestigious indication of origin, <<Made in Switzerland>>, which the
spokeswoman must admit.

That's how it is...  The management of Ed. Jobin AG sees itself forced
"to consider and restructure our strategy within the areas of music
boxes and wholesaling, which are closely connected with the sale of the
music boxes in Switzerland."  It definitely signifies, for a beginning,
that the whole line of the large music boxes will be closed for the
next several months.  Twelve workers are laid off until the end of
April.  Workers from Oberhasli are also involved.

The personnel were briefed about the measures on Monday morning.
Employees that lost their job have been furnished places to go, and
further goodwill measures for those concerned are being examined,
announced the Jobin management.  The local authorities and agencies
were also already advised.

The remaining sectors of the Jobin company (which manufactures
wood-products and carvings, and operates detail-businesses) have not
been involved in this trend or are simply at the edge of it,
emphasizes the management.  After the layoffs the three Jobin
businesses will still employ around 50 persons in 40
full-time-positions, amongst them 8 persons in Lucerne.

(IMPRESSUM) 'Der Oberhasler':  http://www.oberhasler.ch/
Website: Copyright 1992-98 Chris Zumbrunn Ventures.
All rights reserved.


(Message sent Wed 15 Apr 1998, 01:03:03 GMT, from time zone GMT-0700.)

Key Words in Subject:  Jobin, Movements, Reuge, Supply, Won't

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