External Features affecting Logitech’s competitiveness
Logitech Company faces stiff competition from other external companies that produce computer-related products. Competition is a critical external factor in the company’s operations as, through competition, the clients can purchase from different consumers. However, competition helps the company to produce quality products to retain and attract new clients.
The company faces competition from other companies such as Creative Technology Ltd., Microsoft Corporation, and the Royal Philips Electronics N.V. Based on the PESTLE analysis, the Creative Company provides stiff competition to Logitech Company through its global outreach to its worldwide consumers, as it has diversified its production. The companies provide different products to the consumers, thus giving the customers the choice to choose the products of their choice. Besides, the Microsoft Corporation has also increased its sale to the global market through the revolution of computer products sales. Also, Royal Philips Electronics has diversified its product portfolio, therefore greatly providing stiff competition to the Logitech Company. Based on Porter’s Five Forces, the competing companies provide substitutes to the products offered by the Logitech Company, thus greatly impacting the company’s sales. The company’s market power has also reduced greatly due to the entry of the other computer products provider companies. The high pricing by the Logitech Company is a weakness to the company, as its competitors produce goods at lower prices, thus giving the consumers the bargaining power as they have alternatives to choose from. Competition as an external factor greatly affects the company’s competitiveness. Its marketing power is greatly reduced, as most companies prefer low competition in the markets to raise their competitive abilities. The competition, therefore, is a threat to the company’s operations in the global market.
The Logitech Company uses acquisition strategies and has increased the innovations in the company to increase its competitiveness. Through the acquisitions strategies, Logitech Company has increased the quality of its products. The company has made the acquisitions of the video camera section of the Connectix Corporation and Labtec, Inc. Through the acquisitions; the company has increased its operations in the market; thus, many customers can access their products. Besides, the acquisition also provides for the companies competitiveness in the market. Through the acquisitions, the company has provided high-quality video conferencing technologies, which provide a user-friendly experience to the users. The acquisition strategies provide a sustainable competitive advantage for the company by providing the opportunity to compete effectively in the product market. Through acquisitions, the company can increase the production of the products to the consumers, therefore, growing the market opportunity among the other market competitors. Besides, through acquisitions, Logitech Company has diversified its productions. The acquisition of Labtec, Inc. enabled the company to diversity the peripherals as Labtec, Inc. majored in producing the audio peripherals. Therefore through the acquisitions, the company has improved the quality of its peripheral products through their combination with software, video effects, and advanced security features. Thus through acquisitions, the company has competed effectively by providing the customers with a run for their money.
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