Strategic Recommendations for Logitech to overcoming technological and environmental transformation
Logitech Company should adopt the diversification of its products due to the changing consumer behavior trends. Diversification strategy involves the companies’ production of various goods and services to increase sales and profitability. Diversification is often a defense strategy by companies to overcome competition.
The company should use the diversification methods such as concentric diversification. Through the concentric diversification, Logitech Company would produce new products with almost similar technological components to their available products. Concentric diversification enables the company to use similar processes used in the manufacture of their current market products to produce the new products. This type of diversification is important the company is undergoing low sales of their available computers products, hence would increase the company revenues. Concentric diversification is often useful in increasing company sales. Logitech Company can implement concentric diversification by producing standard peripheral products apart from the add-on peripherals. The customers prefer these peripherals if they are inbuilt in the devices. The company should also implement conglomerate diversification. Through the conglomerate diversification, the company would produce unrelated computer products enabling the company to compete effectively in the market. Through the conglomerate diversification, the company would provide other technology products such as video conferencing. The company should also adopt vertical diversification, allowing Logitech Company to take over various functions in the production chains. The vertical strategy would be critical for Logitech Company to produce products with the best sales, reducing production. Adopting the horizontal strategy would also help the company produce products that satisfy the customer needs, raising the profits and sales critical for the company’s survival.
Through the diversification strategy, Logitech company would be able to produce various product types that provide access to a new market. Thus, it raises the product brand and increases the profitability required for its success. Through the production of numerous products, the company would be able to attract new clients also beneficial for the company’s survival. Besides, Logitech would be able to acquire more markets. When the products are many, the company will require more market for the sales of their products. More markets increase the company’s profitability, which is always the growth ambition of Logitech Company. Diversification also encourages companies’ research and development, hence the incorporation of technology in the company productions, which would be beneficial in availing new products in the market. Through research and development, the company can increase technology adoption in its production streams. Diversification is also beneficial for the company’s economies of scale.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more