BUSA 4980- Logitech Case analysis

Topics: Logitech, Strategy, Income Pages: 2 (846 words) Published: October 20, 2014

Logitech is an innovative global provider for several technological accessories and peripherals. Logitech become incorporated in the early 1980’s and nearly three decades later it had roughly 40% of the market share in arenas such as Mice, Webcam, and Remotes. In order to fully understand Logitech’s success it is important to understand their strategy for growing but also their strategy for the issues they have faced. And ultimately deciding what will be their competitive advantage in the future. In order to understand the strategy of Logitech is it imperative to conduct a brief external analysis, beginning with the general environment. The general environment focuses on demographic, economic, political/ legal, socio- cultural, technological, geographic, and physical environmental trends. These trends help analyze what the next strategic moves should be. In Logitech’s case it is crucial for them to analyze all seven trends but focus on the technological trends. Next, an industry analysis needs to be done in order to gain an idea of what kinds of competitive forces the industry will face. These forces are based off of five criteria: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of new substitutes, and rivalry among existing competitors. The third step in conducting an external analysis is understanding the competitor’s objectives, strategies, and their capabilities. Logitech realized early on whom its competitors were, Creative Technology Ltd., Microsoft Corporation, and Royal Philips Electronics, and was able to differentiate its products from them. Strategy is a set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Based on Logitech’s objectives of growth and earnings, they enacted a few key strategies in order to achieve their goals. One strategy was acquisition; Logitech realized that to enhance the company’s development it was crucial to expand their...
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