Logitech Case Study

Topics: Investment, International trade, Economics Pages: 8 (2994 words) Published: January 21, 2011
Logitech’s case study is about how it has configured itself as global corporation and reaping the benefits of doing so. Logitech is known for their innovative computer accessories, the quality of their product offerings and the low prices associated with them. This value is used as a strategy by Logitech. The company has the difference of its cost of production and the value that consumers perceive in it products. Logitech also uses differentiation strategy as well so it can compete and attain a competitive advantage over its rivals. It does this by the design of its products. Logitech outsources components of its businesses in order to add value. Having resources in places where comparative advantage is a factor keeps prices low and again adds value for its customers as well. Logitech engages in location economies by choosing the best locations for each of its operational actives. By doing this Logitech can again lower its costs of value creation and positions itself as a low cost producer and keep competitors at bay. Logitech has created a global web of value creation in its operational activities and the value chain of these locations is used to maximize its perceived value and minimize the costs of these values.

Logitech is an innovator in personal computer accessories and has made its name by offering high quality products at a low cost. Technology is a very competitive business and for anyone to succeed they must find a way to add value for customers. What Logitech has done to accomplish this is look at where that value could come from. Where could or how could they keep costs low to keep attracting customers while pursuing new R&D so they could keep offering new products. How could they keep competitive without hurting their brand name? Logitech starting to look at their business model set up to find if there was any inefficiency. Could changes be made without affecting other faucets of the business leading to inequalities in any or all of the businesses processes? What Logitech did next was to compare itself against its competitors. How did they run their operations what was keeping them profitable without losing quality and brand loyalty? In the technology industry Logitech knows that the high tech market develops quickly and that products desires come and go but what makes these thing work is the key to the success. Logitech has experienced success with being the first to offer a computer mouse that is wireless and used infrared tracking rather than a tracking ball. This gave people a new way to relate with their computer accessories, that computer accessories where now being a part of them instead of a tool in which way to interact with another tool the computer. Logitech was different from its competitors in design and view of how people could work with technology and Logitech knew that. Now they needed to keep ahead and stay ahead. Logitech is a modern global company but they know they need to change their operations. Their operation relies on good marketing, new designs, product development and research, and distribution channels. This is where Logitech sees is value chain.

Logitech strategies; (1) the environment in which the business operates, (2) the resources available to the organization and (3) the history of the organization. These strategies are their critical steps. Once they understand these choices can be made, who are the important partners and people, are alignments checked between all areas of the business operation, is expansion needed and where. •Reinforcing strategies; (1) expanded production capacity, (2) move near competitors, and (3) keep value and low costs. By expanding their operation will allow them to reach economies of scale and lower production costs. Being near competitors keeps them up to speed on market changes in their industry. Keeping value that consumer wants and lower prices reinforce brand loyalty. Recommendations...
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