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Logitech Swot

By | September 2012
Page 1 of 13
A. INNOVATION KNOWLEDGE INTEGRATED
Strengths
Logitech has several internal strengths that has attributed to the company’s success. Logitech has created for itself a strong reputation through its innovative products and excellent customer service. Innovation is Logitech’s top strengths. Because an innovation is cover throughout the paper, I will not be providing detail examples of in this section, but rather be focusing other key factors. Logitech has stood the test of time, the company can quickly respond and adapt to changes in technology or market conditions. Because Logitech’s product and brand is recognized worldwide, the company has a strong channel coverage and efficient worldwide distribution. In 2009, Logitech’s business retail accounted for 85 percent of its revenue and distributed its product in more than 100 countries worldwide. Strength for Logitech would be their strategic acquisitions and industry partnerships. In 2009, Logitech acquired LifeSize Communications. LifeSize is an innovation leader in HD-quality video communications. The acquisition allowed Logitech to enter an untapped business segment and gave them a competitive advantage in that market by bringing videoconferencing to an even broader audience. In 2010, with the help of Google, Logitech entered the digital home market by combining Harmony Remotes, Logitech Revue with Google TV to create a and peripherals associated with the Google TV platform. Logitech report the launch of Logitech Revue and the Google TV peripherals made a significant contribution to growth with sales of $23M (Q3 Fiscal Year 2011). Another great strength is that Logitech focuses on being a cost leader. They are obsessed with developing very affordable, yet quality products. About 95 percent of Logitech’s retail products sell for less than $99 and most of them for under $49. Over the years they have liked innovation to cost in its culture. Being a cost leader allows them to offer a great product at reasonable...
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