1) what are Logitech’s and RIM’s International corporate-level strategies. 2) Do
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1) what are Logitech’s and RIM’s International corporate-level strategies.2) Dothese two companies have any strategic alliances? If so, with whom, what type, and how would you characterize each of these alliances at the business level? CASE 21 Logitech: Finding Success through Innovation and Acquisition Alan N. Hoffman Bentley University and Rotterdam School of Management, Erasmus University Logitech is a long-standing company with a reputation for Apples, Switzerland. Shortly after establishi quality personal computing products offered at a reason- quality software development company, Logitech sa a y that was emerging able price. Additionally, Logitech's the cutting edge of technology in the computer peripher in the mid-1980s: the computer mouse. The mouse o als industry is second to none. This offers the company standard equipment on the original Maclntosh was computer enviable position of being at the top of its industry. launched in January 1984. Logitech viewed the mouse a However, the recent recession accompanied by the chang growth opportunity, and this became a ing face of the personal computing industry offer sig the company's future. Logitech introduced its nificant challenges for the future. Logitech may have to ware device, the find new ways to compete in a world where its products An OEM sales contract with HP followed, and in 195 hane become standard fare on most persona ered the retail market selling 80o uni i the s devices. With a reputation for leading the industry, will month. In July 1988, Logitech's executives decided to take Logitech find new technologies to conquer, or will it find the company public to help finance its rapid growth. itself struggling to survive? turning point o P4 mouse, for users of graphics softgage In the early 1990s, while facing increasingly stroeg competition in the mouse business, Logitech identified a larger market opportunity for computer peripher als and began growing its business beyond the mouse Company Background Logitech, headquartered in Romanel-Sur-Morges, Throughout the next few years, Logitech introdaced Switzerland, was the world's leading provider of com products such as: (1) computer keyboards, (2) a digtal puter peripherals in 2010. Personal computer peripher still camera, (3) a headphone/microphone, (4) a joysic als were input and interface devices that were used for gaming peripheral, and (5) a web camera on a flele navigation, internet communications, digital music, arm. While these new products were introduced under home-entertainment control, gaming, and wireless the Logitech name, the company also continued innova devices. Derived from the French word logiciel, meaning tion in its core mouse business. New and revolutionury software: Logitech was originally formally established technologies developed by Logitech allowed it to cu in 1981 as a software development and hardware archi tinue as an industry leader in the mouse and keybou tecture company by two Stanford graduate students inbusiness. The author would like to thank Tyler Thompson teaching case to provide material for class discussion rather than to illustrate either Copyright2011, RSM Case Development Heather Wooten, Meagan Foy, Samantha Louras, and ill Hoffman for their r of Dx. Alan N. Hoffman, Dept of Management,Bentley University, 175 Forest St,Waltham, MA 02452. RSM Case Development efflective or ineffective handling of a management situation. The Centre, Erasmus University, No part of this publication may be copied, stored,transmitted, reproduced or research and contributions to this carve Centre prepanedth situation. The author has disgu form or medium whatsoever without the permission of the copyright owner distributed a
Explanation / Answer
Information about Logitech is presented in the images provided, so I will discuss that in the answer, ie. First part.
Being a world-leader in computer peripheral right from the inception of the firm, Logitech has a very string and planned corporate level strategy. Their main focus in this strategy is on Product leadership, innovation and design and pricing. Their entry into the market with products like gaming consoles and personal digital pens quite early in the market shows their will and spear-head mindedness regarding new products and innovation. Long term planned acquisitions has been a major highlight of logitech’s business strategy and it has payed off highly for them. Their global selling strategy was more inclined towards consumer products retail selling. In FY 2009, 85% of their revenue was though retail selling. Another part of the corporate strategy was to expand in the global market as the requirement for their product was worldwide. They have a market reach of over 100 countries.
Logitech's had interactions with various companies to strengthen its business. These "interactions" can be classified into: aquisitions and partnerships of various types. A summary is presented below:
Company
Type
Details
Connectix Corporation
Acquisition
Quick cam PC (Product acquisition)
Labtech Inc.
Acquisition
Audio peripherals (Product acquisition)
Intrigue Tech.
Acquisition
Remote control devices (Product acquisition)
Slim Devices
Acquisition
Music systems (product acquisition)
Paradial AS
Acquisition
Hd videos and multimedia (Service acquisition)
Apollo computers
Partnership
Official Product supplier partnership (Mice)
HP
Partnership
Official product supplier partnership (Mice)
Global internet telephone
Partnership
Marketing and promotion agreement in US, Canada and Europe
Skype
Partnership
Marketing and promotion agreement in US, Canada and Europe
Company
Type
Details
Connectix Corporation
Acquisition
Quick cam PC (Product acquisition)
Labtech Inc.
Acquisition
Audio peripherals (Product acquisition)
Intrigue Tech.
Acquisition
Remote control devices (Product acquisition)
Slim Devices
Acquisition
Music systems (product acquisition)
Paradial AS
Acquisition
Hd videos and multimedia (Service acquisition)
Apollo computers
Partnership
Official Product supplier partnership (Mice)
HP
Partnership
Official product supplier partnership (Mice)
Global internet telephone
Partnership
Marketing and promotion agreement in US, Canada and Europe
Skype
Partnership
Marketing and promotion agreement in US, Canada and Europe
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