Logitech: Finding Success through Innovation and Acquisition Case Study Solution
Global presence
Since the company has established itself successfully by creating a strong presence and reputation globally because of its innovative products. A significant 6 number of sales was attributed to the global market. The company soon became the leading supplier of the personal peripherals across the world.
Furthermore being an innovator, the company has maintained its price throughout. A large part of the total sales is directly stemmed from the products that are under sixty dollars. Logitech combination of creative mindset along with affordable prices has contributed significantly to the sales of the company. (Birkinshaw, 2007)
Generic competitive strategy being employed by Logitech
Best cost provider strategy
The generic competitive strategy being employed by Logitech that provide the company with a competitive edge is the best cost provider strategy. This strategy helped the company in providing a competitive offering by blending affordable price with highly differentiating products.
By efficiently utilizing this strategy the company was able to establish its name in the market. The company was then known for providing innovative products at a reasonable rate while maintain the quality of its product.
A mixture of innovation along with strategic acquisition is a key element of Logitech strategy that has enhanced its offerings when compared with the products of its competitors. And provided a support in delivering the most updated, innovative and overall a collaborative experience to their customer at a best rate. (Porter, 2008)
Difference in the strategy being employed by Logitech and its competitors
Strategy employed by Logitech
- Logitech has built its company by employing a strategy that is focused on creating a product that is innovative and yet reasonable. Apart from it Logitech in order to grow itself as a market leader has made various strategic acquisitions that has helped the company to expand its business across the world.
- The company’s key focus is to deliver innovative products that are aligned with the changing technology and with the growing needs of the customer, while maintaining the quality and design that will help in differentiating the product and the brand and will be applauded by its targeted audience. Logitech as being the innovator has more often created the market trends rather than following it blindly and is the only company that is exclusively focusing on the personal peripheral products.
Strategy employed by its competitors
Since Logitech has primarily focused on producing personal peripheral products. Its competitors have invested their resources and products in a large variety of other industries. They haven’t limited themselves to a certain industry giving them a benefit to explore other markets. Thus increasing their overall share and presence in different industries while ensuring their long term survival.
Recommendation
Logitech in order to secure its long term growth and survival should develop strategic partnership with the companies that are considered as the key innovators and are the market leaders of mobile web and smartphone applications. Since the industry trend has evolved and now the devices that are used for the interaction have changed. Companies like iPhone and Samsung are now coming up with built-in peripherals that have eliminated the need of buying any addition peripherals for the consumer. Thus, slowly and gradually evaporating the market demand of computer peripherals upon which the Logitech success is based on. Therefore Logitech in order to stay competitive and to strengthen its profitability and growth in the long run should shift its primary focus from peripherals to the growing trends of mobile web and smart phone application. As now the industry is revolving around the content strategy and the expectations of the consumer regarding the smartphone application and mobile web, which is soon going to capture a large share and will shift the trend to built-in technologies and will eliminate the need to buy any additional peripherals.............
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