Strategic Management Assignment: Business Analysis Of Logitech
Question
Task:
For this strategic management assignment, you are required to conduct a detailed strategic audit analysis for your organization. This assignment helps you applying the strategic management process, concepts, tools and techniques learned from this course.
Answer
Executive Summary
Strategic management is one of the most essential criteria for evaluating business goals and an organization’s vision towards success, so the present strategic management assignment is focused on the same. As the business space continues to progress towards betterment it has been witnessed that having in-depth knowledge of the strengths and weaknesses of a firm ensures that the firm understands its strategic goals. The following report aims to discuss about the same in the background of Logitech besides shedding a light on various matrices for a deeper analysis.
Introduction
In the contemporary world, strategic management is majorly the management of a particular organisation’s human resources for letting it achieve its objectives and goals. As the business space proceeds further to become more and more tight pack such strategic management plan ensures that the performance target is met and the business proceeds to grow in the correct direction (Ansoff, et al., 2018). The below-mentioned report aims to discuss about the same in the background of the giant Swiss manufacturer Logitech.
The company
Logitech international is considered to be the Swiss manufacturer of software, computer materials and hardware that has its headquarters situated in Lausanne Switzerland (Castelluccio, 2021). The giant organisation in the present time has its offices in many of the flourishing parts of the world which is also considered to be the leading manufacturer of input and other interface items manufactured for personal computers and laptops.
History and evolution:
Logitech as an organisation was founded back in the year 1981 by the alumni of Standford Daniel Borel, former engineer Giacomo Marini and Pierluigi Zappacosta. Amid its initial days, Logitech's offices in the Silicon Valley initiated its operations for expanding its range in the computer peripherals.
The evolution of the company began from the year 2008 when Logitech had announced that the company had produced and released one billion computer mice ever since the year 1985. The announcement gave an all totally different light to the company. In July 2011 Logitech went ahead to acquire the famous mobile visual communications granter Mirial (Sundiman, 2018). Where as in the year 2016 the company also released an official announcement that they had purchased the Saitek brand and its assets from the Mad Catz for around $US13 million.
Thus, it can be stated that the success which the company had witnessed ever since its past times had been on the pathway of making profits and thereby walking in the lines of expansion. The evolution of the company had followed the direction of pure business where Logitech was even successful in acquiring Astro Gaming back in August 2017 Berisha (Qehaja, et al., 2017). In the year 2018 purchased the Blue Microphones and Streamlabs in the year 2019. Thus, keeping its growth strategy in mind it can be added that the evolution of the company had followed the correct pathway towards success.
Mission and major goals:
Logitech is one of the famous Swiss Companies that is focused on quality and innovation. The company is known for designing experiences and products that focuses on enhancing the life quality of individuals (Stone, 2020). The major mission and goal of the company in the present time is to bring such tools in the market which enriches the interface between information and people.
Current strategies:
As a brand, Logitech has been quite committed to its growth for flourishing in the long run's competitive space. The corporate strategy of Logitech in such an environment is to position itself competitively in the market for achieving its business objectives and goals. In the long run, the brand aims to maintain a clear as well as a focused ambition for making deeper co links with the young audiences who are inclined towards the products of the company articulating it with their lifestyle patterns and technology.
Competition in the industry is a core part and parcel of keeping the business running in the long run. In such a scenario Logitech is further committed to providing such unforgettable experiences to its users that but only serves as an ideal platform for the brand to go further in a profitable manner (Makadok, Burton, and Barney, 2018). For staying ahead in the competition Logitech has even taken the initiative of partnering with properties like the Lakme Fashion Week which would but only serve as an ideal platform to bring in excellence for brands to connect and co link with their audiences. This strategy of Logitech provides an all totally different exposure to the company where taking the initiative and the opportunity in hand the company is capable of explaining to its audiences how its products and services are distinct and designed keeping the parameters of comfort in mind.
All the same, another competitive strategy which is greatly utilised by Logitech in the current time period is that advertising and taking the initiative of speaking of the work from home option. Though the strategy utilised is taking consideration of the pandemic yet Logitech has not deviated from its marketing tactics even in the present scenario (Hitt, and Duane Ireland, 2017). The change and transformation that was brought in by the pandemic has pushed organisations all across the globe to adapt to the new normal situation. Taking a close look at the situation one of the best tactics which Logitech has utilised is that making sure that its users get access to both such typologies of products that permits them to take swift actions on both: ‘Work from home and play from home’ option. With Logitech’s diverse portfolio range the company is effectively marketing its policy and thereby raising above its competitors via its this particular strategy to stay ahead in the race.
The company's current range of mouse, webcams, keyboards along with headphones have been designed in such a manner which allows its users to feel the comfort and thereby increases their efficiency on the working table. With the brand's this power-packed tactic, it has been witnessed that immense transaction of wireless segments is being considered as a proven ability of granting high-end user experiences that is undeniably easier in the long run (AGHAZADEH, and AHMADI, 2017). Thus, keeping the same in consideration it can be stated that Logitech amends' its competitive strategy as per the changing market scenario's and acceptance patterns.
Next throwing light on the business strategy of the company it is to be mentioned that the huge success witnessed by the company in the past 22 years of its operations in the market is highly attributed to the consumer demands and how the company has fulfilled each of it. The company's fondness towards utility and entertainment also aims to capitalise computer purchases made in the several years. The business strategy of the company to excel in the long race is to offer sophisticated engineering solutions to its audiences with a mixture of innovation, design, usability and engineering which most of the organisations operating in the business space simply cannot cope up with (Jabbar, and Hussein, 2017). However, in the long run, another business strategy of Logitech is also to hold on to its existing customers for keeping its operations in an ever-flourishing position. As pricing of products happens to be a crucial part of the business it is to be mentioned that Logitech operates at a dual-level highly where most of its products are segregated to cater to every single section of the market. For instance, it releases both affordable products and higher-priced products for its customers to choose through and thereby make the correct decisions as per their own choices. Thus, it can be stated that the business strategy of Logitech is but only customer driven where the company takes crucial note on fulfilling the existing wants and desires of its target audiences. Moreover, keeping the trend pattern in consideration Logitech even takes a keynote on realising timely products and services into the market space for keeping its customers engaged to the company in the tight packed competitive space.
The functional strategy of a company plays a critical part in its overall success in the long run. As the business space continues to progress towards betterment it has but only been witnessed that competition on the field is ever on a rise owing to rising awareness and emergence of both big and small industries. In such a scenario Logitech takes key note on all its aspects quite minutely, for instance, its pricing, distribution and product strategy to excel in the long race (Dalrymple, et al., 2020). As the company operates in different parts of the world it is to be mentioned that it operates keeping the distinct and different situations of the countries in mind for excelling in the long run. Thus, it can be stated that as a brand Logitech understands the minute basis of operation and thereby distributes its products accordingly as per the diversities of the region for keeping the company and its products in an ever-flowing position.
Strategic consistency:
Strategic consistency happens to be a core part of the business in the current modern time. Without consistency, no business can survive in the long run as the business space is not only tight packed but also highly dynamic (Harrison, et al., 2017). Where owing to the large number of options and varieties each customer has a choice of deviating towards a different company to fulfil their demands and wants. Internet and high-end digitalisation are also responsible for playing a huge role in making the barrier level less between big and small companies. Due to hefty digitalisation in the business process along with budget friendly exposure in the digital platforms maintaining consistency and quality products is the core aspect of keeping a business in an ever-flourishing state in the long run.
Continuity is also one of the core aspects of keeping the audiences informed about how the brand is but only coming up with new ideologies to keep their needs satisfied at every single level. As far as the case of Logitech is considered it is to be mentioned that the brand has been consistent in its performance ever since the past days. Whereas mentioned previously the company has but only utilised it add on profits for purchasing shares or partnership contracts with other companies. The major strategy of Logitech behind its this tactic was to frame up itself as one such organisation that caters to the demands of the public as per the changing times (Leota, et al., 2021). Nevertheless, Logitech even aimed to garner greater exposure via its this movement. The company maintained its consistency in serving its audiences when it introduced items like comfortable work from home products for keeping the arising needs and wants of its audiences satisfied. The outbreak of the Covid-19 pandemic in the year 2020 was one of the biggest challenges for industries across the globe. However, with the work from home scenario, the same condition which was put forward to cope up with it was the 'new normal'. Logitech understanding the minute basis of the situation not only introduced handy and user-friendly products but also aimed to cater to the needs to every section of its audiences via its pricing strategy. Thus, it can be stated that the company walked and continues to walk in the line of strategic consistency as with the changing times it not only understands the demand and needs of its target audiences but also how its business can perform better in the long run.
All the same, another aspect which is to be mentioned in this regard is that Logitech had even taken the initiative to introduce budget friendly headphones in the year 2020 as a part of understanding the minute scrapes of the situation. As the world was practicing the norms of social distancing and lock down the brand on the other hand introduced such products that levelled up the sales of the audiences sitting back at home (Heikkilä, et al., 2018). Thus, on an overall basis, it can be added that Logitech as an organisation understands the minute basis of every situation and hence had even worked towards it keeping its customers and business in consideration thereby maintaining end to end strategic consistency in its operations.
External Environment
External environment is basically the analysis of opportunities and threats in a particular industry that works towards driving volatility, growth and profitability in a particular organisation. In the long run, this happens to be an extremely important and crucial tool in understanding the situation and the decision in every business. In such a scenario the firm also relies upon the precise decision-making ability to pick pointing the best option for enabling success and growth in the firm in the long run. In addition to the same, it can also be added that external environment is one of the key inputs of end to end strategy formulation in the long run that but only works towards protecting an organisation's legal sphere in the distant future besides undermining a firm’s long term plans (Ivan?i?, et al., 2017). The below mentioned sections throw a key light on the external environment analysis of Logitech in a detailed manner.
PESTEL Analysis
Political: Logitech is known for manufacturing the vast majority of its products in China. Via following this particular tactic in this regard, the company gains the benefit of inexpensive labour force along with end to end accessibility to electrical components majority of which are also produced in China. However, at the same time, one of the biggest challenges that Logitech faces is the hefty import tariffs that are but only imposed upon China by countries that are importing the products (Ehls, et al., 2020). Thus, it can be added that in the long run, this puts a barrier upon Logitech as it has to pay prices to the Chinese government along with being on the face of the US-China relations the politics of which affects and impacts its operations to a great extend.
Economic: As one of the greatest manufacturers of customer eccentric electronic products Logitech has managed to well place itself in the reap of rewards via being a part of the customer’s disposable income in the long run. One of the major aspects which affects the operations of the company is that as customers across the globe are becoming wealthier their expenses upon the electronic items are expected to increase more specifically in the poorer regions of the world (Cohan, 2020). These countries can also turn out to be one of those where these items, in particular, where out of reach in the previous times. Thus, it can be added that Logitech would be required to draft an effective marketing strategy to flourish in backward countries like Africa to keep its operations in an ever-going state.
However, in the long run, a massive increase and levelling up of the international pricing rates may adversely impact the demand of the products in the market space. Thus, it can be added that well being of the economic conditions and international market is crucial for Logitech to be in a profitable state. Moreover, the outbreak of the global pandemic has also levelled up the demand for its products and services and hence to keep its operations in a flourishing state it is to be mentioned that the economic status and other offset risks owing to the fluctuations in the exchange rate can be one of the major contributors affecting and impacting the operations of Logitech in the long run.
Social Factors: Logitech as a company is particularly popular for selling peripherals of computer items. All the same, in the current time period as it has been witnessed the demand for personal computers, have witnessed its own steeper growth in mature markets like the North America, Japan, Europe and other such countries. The major reason being stated behind this particular decline is the acceptance of laptop computers and other mobile tablets (He, et al., 2019). Thus, it can be added that the demand for computer items have declined and is also expected to decline in near future that would but only impact the business parameters of Logitech to a great extend. However, as Logitech as a firm has always aimed to maintain consistency in its business it can be added that diversifying its business is one of the strongest options available with the business which the company is also working towards.
As per the reports Logitech is also working upon video collaboration with medium to small sized groups besides manufacturing and selling products related to digital music in the trendy ultimate market space. Thus, it can be added that though social factors and the changing norms of the current time are affecting the business of the company yet Logitech is but only working towards it for conquering it in an effective manner for excelling in the long run.
Technological Factors: As one of the well-known consumer goods company operating across the globe, the websites of Logitech are crucial part and parcel of its business for succeeding in the long run. The company has centralised its information technology system and also utilises the same for storing its intellectual property, maintaining financial data, business forecasts, operations and inventory (Chekurov, and Salmi, 2017). However, even after such minute level management, it is to be mentioned that them continues to exist risks related to shutdowns or even disruptions owing to hardware or telecom failures. The outbreak of novel coronavirus in the year 2020 had but only levelled up the risk of breach of data owing to in the increase in the rate of third-party suppliers.
Thus, it can be outlined that corruption, security issues or even effect on the reputation in the market can work towards affecting the technologies for the company’s end to end operations.
Legal Factors: Logitech depends upon various trade secrets, trade unions, copyrights and other intellectual property laws for protecting its intellectual property and propriety technology. Logitech holds its patents in the United States where it also has pending applications in other countries (Calmon, and Graves, 2017). However, when viewed in the long run, there happens to be risk that such patents can be invalidated anytime or can even be deemed unenforceable along with being legally challenged mitigating the competitive advantage for that of Logitech in the longer race.
All the same, on the other ground it can also be outlined that in case of any infringement the company, in the long run, may have to deal with cases that may but only add to additional costs for Logitech. In the business space, such events can even work towards affecting its reputation and business as a whole.
Definition of the industry:
Logitech operates in consumer electronics industry. The company is majorly responsible for manufacturing remote controls, mice, keyboards, security cameras and so on other materials. When viewing the industry on a minute basis it is to be mentioned that the consumer electronics industry has grown and developed with time. Where the demand of the general target audiences had been restrained and grown as per the changing norms. When the first computer was made open to public use the size of the same had filled up an entire room however as the days passed by, developments not only took place but also the size and the compatibility of the same were made to fit in the demands of the customers (Lee, and Pilkington, 2017). Thus, it can be added that this marks the initial phase of the consumer electronics industry as far as the operations of Logitech is considered. Where as mentioned previously the company even made a record of producing highest number of computer mouse. Therefore, it can be outlined that Logitech with time not only understood the major demands of its customers but also the moulding taking place in the industry with time. Where in the year 2020 understanding the trend parameters the company produced computer products for its segregated audience base along with the customers willing to work from home.
Porter Five Forces Model
Threat of New Entrants:
New Entrants in the field where Logitech operates is capable of putting enormous pressure on the company as the earned audiences of the company might not hesitate switching to budget friendly options in the long run. Logitech with its years of exceptional performance has been capable of earning itself a wide audience base and hence to manage such challenges the company would not only require support of its internal members but would also be required to build a competitive edge (Beleya, et al., 2017). However, Logitech’s methodology of innovating its products may provide the company its much needed competitive edge.
Bargaining power of Suppliers:
Almost every single company in the Computer Peripherals field purchase their raw materials from number of suppliers operating in the space. Thus, it may be outlined that suppliers being placed in the dominant position may but only decrease their existing margins. However, in absolute contrast to the same, it is also to be mentioned that powerful suppliers in the technology sector can utilise their own negotiating power for extracting higher prices (Cichosz, 2018). Moreover, the overall impact of higher supplier bargaining power is what that works towards lowering the profitability status of the computer peripherals company.
Bargaining power of the Buyers:
Buyers in the field are often quite demanding they want to purchase the best and enhanced offerings available via paying the minimum price as possible. In the long run, this factor is responsible for putting enormous pressure on Logitech international and its profitability status. The smaller along with powerful customer base can be the core of increasing the bargaining power of the audiences for increasing discounts and offers.
Threat of Substitutes:
When a particular new product or service in the market space meets a customer demand in a different way the industry profitability suffers as a whole. For instance, services of the dropbox and Google drive are considered to be substitute's for hardware Thus, on an overall basis it can be added that the threat for substitute is extremely high if the value proposition offered by the company is not uniquely different from the present offerings of the industry. However, to conquer the same in the long run, Logitech here needs to focus upon its service delivery rather than simply being product oriented.
Industry Rivalry:
The rivalry amongst existing players in a particular industry happens to be intense. The prices of the products and services provided by the industry players are automatically expected to reduce down. However, owing to Logitech's competitive nature the competition does take a toll upon the long-term profitability of the organisation (Bhatt, and Singhi, 2020). Few of the close and neck to neck competitors of Logitech are Apple, Poly, Samsung electronics and so on. Thus, it can be added to excel in the long race Logitech would be required to build a sustainable differentiation to scale up its operations and thereby compete better in the long run.
Key Opportunities and Threats
Opportunities:
Logitech as a brand operates on an enhanced larger scale where its products and services are available in most of the major markets of the world (Lee, 2018). Being one of the best players in the field of consumer electronics industry it is to be mentioned that the industry and its constant thrive for innovation is one of the biggest opportunity available to Logitech for excelling in the long race.
Few of the opportunities available to Logitech are:
-Taking note of the increasing disposable income of the target audiences and thereby producing such products that are preferred by the target audiences.
-Rapid urbanisation is another opportunity contributing to the consumer electronics industry.
-The well-known market players of the current time are investing heavily in the field of Research and development for introducing new advanced eco friendly electronics to increase the market revenue and thereby expand the presence.
Threats:
-As innovation is witnessing its own twists and turns in the current time period it can be stated that one of the major threats for Logitech would be increased and time and time expenditure in the field which at times may not even work.
-Changing preference pattern of the customers may also be one of the biggest threats for Logitech as being one of the well-known brands operating in the sector the company might be required to bring in products as per the choices of its audiences.
-As Logitech operates in few of the well to do countries of the world it can be outlined that changing governmental regulations may also be considered one of the arising threats for the company in the long run.
-Increased Cyber theft can also be another threat in the face of the company in the distant future aspects.
EFE Matrix
| Key External Factors | Weight | Rating | Weighted Score |
| Opportunities | |||
| Growth of low-cost sector | 0.10 | 4 | 0.40 |
| Increased desire for wireless services | 0.25 | 3 | 0.75 |
| New agreements of the rising market spaces | 0.15 | 3 | 0.45 |
| Increment in sales | 0.10 | 1 | 0.10 |
| Threats | |||
| New taxes related to the products | 0.05 | 3 | 0.15 |
| Increasing cost of healthcare | 0.05 | 2 | 0.10 |
| Large number of players in the industry | 0.20 | 1 | 0.20 |
| Constant development of new technology | 0.10 | 1 | 0.10 |
| TOTAL | 1.00 | 2.25 |
Table 1: EFE Matrix
(Source: self-created)
CPM Matrix
| Logitech | Apple | Poly | |||||
| Critical success factors | weight | rating | score | rating | score | rating | score |
| Brand Reputation | 0.13 | 2 | 0.26 | 3 | 0.39 | 1 | 0.13 |
| Level of product integration | 0.08 | 4 | 0.32 | 3 | 0.24 | 1 | 0.08 |
| Range of products | 0.05 | 3 | 0.15 | 1 | 0.05 | 2 | 0.1 |
| Successful new introductions | 0.04 | 3 | 0.12 | 3 | 0.12 | 3 | 0.12 |
| Market Share | 0.14 | 2 | 0.28 | 4 | 0.56 | 4 | 0.56 |
| Low Cost structure | 0.08 | 1 | 0.08 | 2 | 0.16 | 4 | 0.24 |
| Variety of Distribution Channels | 0.05 | 1 | 0.28 | 3 | 0.15 | 2 | 0.2 |
| Sales per season | 0.07 | 4 | 0.05 | 2 | 0.14 | 2 | 0.14 |
| Customer Retention | 0.02 | 2 | 0.04 | 4 | 0.08 | 1 | 0.2 |
| TOTAL | 1 | 2.44 | 2.94 | 2.71 | |||
Table 2: CPM Matrix
(Source: self-created)
Internal Strengths and Weaknesses
Thoroughness, accuracy, and depth of internal analysis:
Logitech as a firm deal with extreme competition on a wide basis. In such a scenario the accuracy to be maintained by the firm is required to be huge. The handy technique that is maintained by the firm is facing its current business environment (Sayer, and Morgan, 2018). For instance, Logitech took full on initiative of maintaining its business flow even amid the pandemic phase where not only did it introduce work from home comfort for customers but also paid attention to reviving its business via the introduction of comfortable head sets. Thus, taking note on such activities of the company it can be stated that the internal human resources of the firm were capable enough to drag the company’s business forward even amid the tight packed phase.
Key Strengths & Weaknesses:
As an organisation Logitech has been quite focused and strived to maintain the growth levels via its actions not level up its business performance along with maintaining its target audience base in the market field. Logitech happens to be one of the well-known customer good company in the present time period and hence it is often looked upon by the audiences for fulfilling their demands (Todd, 2018). In such a scenario few of the internal strengths and weaknesses of the company are as follows:
Strengths:
-Good returns on the expenditure of capital: As an organisation, Logitech has been successful in nurturing its profits and bringing back the spend amount back to its business in the long run. Thus, it can be stated that one of the major strengths of Logitech is its internal human resources that have but only worked towards the betterment of the firm.
-Strong and consistent cash flow: As view from the aforementioned analysis it can be witnessed that Logitech as an organisation has been capable of selling its products and services to its target audiences at a much larger capacity. Therefore, it can be outlined that enhanced financial strength is another key capability and strength of the firm.
Weaknesses:
-Logitech needs to make much more investment in new technologies. As the market space of industrial customer electronic goods happens to be quite tight packed it is to be mentioned that to succeed in the longer race the company requires to present itself as a capable firm than that of its competitors to stay ahead in the race. As witnessed from the aforementioned analysis the competitors of Logitech are few of the well to do firms like Apple and Poly. Thus, it can be added lack of choices shown on the part of Logitech can deviate the customers from the brand.
VRIO Fame Work
Figure 1: VRIO Analysis
(Source: self-created)
Thus, as viewed from the aforementioned image it can be analysed that competencies that are valuable in the long run assist the company in question passing a baton to the company's CEO for exploiting the opportunities in both the internal and external environment. The stakeholders of the company in the case are not only well acknowledged but also the social responsibility actions of the firm include the annual report and website documents in a detailed manner. The company's capability of raising resources is one of the rarest qualities of Logitech where owing to its global presence it has been capable of building such an expanded and flourished customer base for strengthening its cultural exposure. Nevertheless, in addition to the same, it is also to be mentioned that Logitech's exceptional quality of maintaining its identity and product parameters as per the choices of its target audiences in different regions of the world is one of the rarest qualities held by the brand as a whole. The problem-solving skills of the internal members and their adaptability maintaining the correct time phase has but only worked in favour of the company and granted it the high exposure it has today.
Value Chain Analysis
Primary activities:
Inbound Logistics:
Logitech needs to understand and thereby determine the importance of developing strong relationships with its suppliers as their support happens to be quite necessary for storing and thereby distributing the products of the firm. Analysis of the in-bound of logistics needs the company to stress on every single aspect of transformation beginning from raw materials to the final finished products.
Operations:
The significance of analysing the operational activities levels up when raw materials arrive and the company in question is quite ready to process the same into the final ones for launching them in the market space (Pham, and Yeo, 2018). The operations in this regard includes and takes note of both service and manufacturing.
Outbound logistics:
The outbound logistics takes the consideration of the activities which deliver the product to the target audience via passing through different intermediaries. Few of the outbound logistics in this regard are material handling, warehousing, transporting, processing and transportation. As the outbound activities of the company are timely managed it can be stated that the optimal costs put the most minimum negative effect on the quality.
Marketing and sales:
The marketing and sales activities for the company in question are: sales force, promotional activities, pricing, channel selection, building relations, quoting and so on. The company in question even utilises the marketing funnel to structure and put forward its activities (Varnas, 2018). The strategies deployed by the company are push and pull in nature as per the outer scenario.
Services:
The presale and post sale services offered by the company in question is one of the most beneficial aspects of throwing a light upon where the firm is at the moment. The modern customers in the current time period consider the post sale services as the most crucial ones before buying the product (Mangiaracina, et al., 2019). Logitech with its enhanced promotional activities has been successful in winning the trust of its customers where the company takes the initiative of timely upgrading its activities so as to avoid any type of brand damage in the long run.
IFE Matrix
| Key Internal Factors | Weight | Rating | Weighed Score |
| Strengths | |||
| Excellent Channel and delivery System | 0.10 | 5 | 0.50 |
| Internal employees | 0.07 | 3 | 0.21 |
| Financial capability | 0.05 | 3 | 0.15 |
| Good customer support service after sales | 0.06 | 3 | 0.18 |
| Weaknesses | |||
| Maintenance of competitive edge | 0.08 | 2 | 0.16 |
| Clarity on investment | 0.12 | 3 | 0.36 |
| More underdevelopment countries to cover | 0.09 | 1 | 0.09 |
| Total | 0.57 | 1.65 | |
Table 3: IFE Matrix
(Source: self-created)
Matching analysis / Assessment of alternatives
SWOT Matrix
| Strengths | Weaknesses |
| -Strong brand portfolio of Logitech serves to be extremely useful specially when the brand aims to expand into new product categories. -Reliable suppliers enable the company to overcome the bottle necks that keep appearing in the supply chain of the company-Effective and manageable dealer community | -Improper financial planning of the firm -The gaps in the product range sold by the firm -Not much emphasis provided in research and development by the industry |
| Opportunities | Threats |
| -The opening up of the new markets owing to the agreement of the government -Getting new customers from online channels as digitalisation as taken the business space to a different space -Lower down the inflation rate in different countries providing end to end opportunities to Logitech | -New environmental regulations can happen to be a threat to the existing product categories -The rise in the price of the raw materials -Intense competition and huge number of players in the field owing to hefty digitalisation is another big threat for Logitech in the times to come. |
Table 4: SWOT Analysis
(Source: self-created)
BCG Matrix
Figure 2: BCG Matrix
(Source: Madsen, 2017)
Stars:
-The financial services offered by Logitech in the BCG matrix operates in the market space that but only portrays potential in the future. Logitech learning from its customers earns a significant income from the SBU.
-However, in the long run, Logitech should take the initiative of undergoing a new product development strategy where with its innovative features Logitech would design a new product by attracting more customers to increase its sales.
Cash Cows:
-The supplier management service of Logitech in this regard happens to be the cash cow in the BCG matrix of Logitech learning. Beginning from customers to designing a new product This particular operations over decades earned Logitech a critical amount of revenue.
-The innovative product strategy of Logitech and its time and again introduction of new products in the market has also earned it significant revenue in the past days. Thus, it can be stated that Logitech happens to be the market leader in this particular regard.
Question Marks:
-The recent trends in the final consumer market shows that the customers are more inclined towards the local foods. Thus, learning from its customers Logitech has to lower down its market share in this particular segment and thereby invest in research and development for coming up with innovative features.
-Another question mark in the BCG matrix of Logitech indicates that the products of Logitech need to undergo penetration to be present in more outlets of the world for ensuring increased sales on the future grounds.
Dogs:
-The segment indicates that the market space happens to decline owing to greater environmental concerns. The recommended strategy which can be given to Logitech in this particular regard is designing such a product that divests into strategic businesses units for minimising the losses.
-Another section in this segment indicates that Logitech must learn from its customers to minimize negative profits. For instance, the section indicates that the company must analyse the trends and thereby develop products as per the choices of its customers.
IE Matrix
Figure 3: IFE Scores
(Source: self-created)
As per the total score of the IFE matrix of Logitech, it is to be mentioned that recommended strategy for the company must be harvest or divest. Thus, it can be stated that the company is still lagging behind its competitors in the long run.
SPACE Matrix
| Internal Strategy Position | External Strategy Position |
| CP (Competitive Position) (X axis) | IP (Industry Position) (X axis) |
| 1 Product Quality | Barriers to Entry |
| 2 Market Share | Growth Potential |
| 3 Brand Image | Access to Finance |
| 4 Product Life Cycle | Consolidation |
| 5 Customer Service | Profit |
| 6 Customer Loyalty |
| FP (Financial Position) (Y axis) | SP (Stability Position) (Y axis) |
| Earnings Per Share | Price of Completive Product |
| Revenue Increase | Competitive Pressure |
| Return on Assets | Global Economics |
| Leverage | Technology Change |
| Liquidity | Demand Elasticity |
| Cash Flow | Inflation Rate |
Figure 4: Space Matrix
(Source: self-created)
As per the space matrix quadrants the curve falls in the 1 quadrant which means that the suggested strategy type is Aggressive. The suggested strategies therefore are:
-Market penetration
-Product development and so on.
GM Matrix
WEAK COMPETITION |
STRONG COMPETITION |
|
|
Table 6: GM matrix
(Source: self-created)
Recommendation of Strategy / Strategies
QSPM Matrix
| Key Internal Factors | Weight | Rating | Weighted Score |
| Strengths | 0.10 | 4 | 0.40 |
| Human resources | 0.06 | 4 | 0.24 |
| Wide Coverage | 0.05 | 3 | 0.15 |
| Wider variety of product options | 0.04 | 1 | 0.04 |
| Various International Investment | 0.06 | 3 | 0.18 |
| Weaknesses | |||
| Clarity on investment | 0.07 | 3 | 0.21 |
| More areas to cover | 0.08 | 2 | 0.16 |
| Inadequate competition sprit | 0.03 | 3 | 0.09 |
| Total | 0.49 | 1.47 |
Table 7: QSPM MATRIX
(Source: self-created)
| Key Internal Factors | Weight | Rating | Weighted Score |
| Opportunities | |||
| Customer Expansion | 0.07 | 1 | 0.07 |
| Growing markets | 0.05 | 2 | 0.10 |
| Increasing distribution | 0.09 | 1 | 0.09 |
| Threats | |||
| Increased competition | 0.12 | 1 | 0.12 |
| Ever changing trends | 0.10 | 3 | 0.30 |
| Total | 0.43 | 0.68 |
Table 8: QSPM MATRIX
(Source: self-created)
Conclusion and Future Recommendations of Organization
In the end, it can be concluded that for excelling in the long run an organisation requires its own end to end understanding of the environment for gasping and fixing a tight packed position in the market space. As far as the case of Logitech is considered it is to be mentioned that the brand needs exceptional focus on the market to out beat and stand out its top-notch competitors. Few of the tactical recommendations for the organisation in this regard would be as follows:
-Making use of social media and digital platforms for advertising the products and services of the company.
-Adapting to the needs and responsibilities of the target audiences for making sure that the innovative products of the company are well accepted by the audiences.
When viewing on a wider basis it can be analysed that the aforementioned recommendations would work for the company, in the long run, taking it to its success as the business space continues to progress.
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