StudentShare solutions
Triangle menu

Logitechs Quality of Strategy - Case Study Example

Not dowloaded yet

Extract of sample
Logitechs Quality of Strategy

Their product line incorporates Internet video cameras, mice and trackballs, keyboards, audio and telephony products, interactive gaming devices and 3D controller.
Logitech's founding stones were kept in Apples, Vaud, Switzerland, in 1981 by two Stanford Masters alumni, Daniel Borel and Pierluigi Zappacosta, Logitech revolutionized the computer peripheral industry by introducing the first mouse ever it now leads the computer industry with a wide range of innovative products that ease the PC navigation.
Logitech's specialty is creating an interface between humans and the digital domain. But what started out as a niche market is now a major business operating in more than 150 countries worldwide, maintaining an excellent global brand image with huge shelf space and an extended line of products. "Each year, we roll out 100 new products," claimed Sandro Isteri, Director Swiss Operations Logitech International recognizing the leadership of its company.
Logitech's success pivots on a number of factors of which the greatest change was the recruitment of Guerrino De Luca, the current President And CEO of Logitech International, in 1997. Guerrino De Luca had the experience that Logitech needed when he became its president and chief executive officer in 1998: he was an engineer who knew marketing. Under his direction, sales of Logitech products exploded, in less then a span of seven years Logitech's Co-founder and current chairman saw its not so very competent company quadrupling profits every year and leading the charts in NASDAQ and Japanese exchange.

De Luca's achievements at Logitech accounted for his outstanding leadership and innovative qualities, firm determination and above his luck, "As our luck always worked for us.." remarked De Luca while discussing he thoughts on company's performance at a quarterly meeting.

Logitech's business strategy has centered on efficient pricing and innovation and the major change that De Luca brought to the company was a swing from technology-centered operations to Consumer-centered policies. He realized that despite being in the technology business, the focus should be on successfully marketing the product rather eliminating technological barriers. This is the reason why Logitech's products are efficiently designed and aesthetically developed. "People buy our mouse because it glows", said De Luca emphasizing on the need to lure customer with visual quality and design.
The Key factor of De Luca's leadership was a revision of market segmentation strategies which resulted in shift from OEM (Original Equipment Manufacturer) products to high-margin branded commodities for the retail market. This adjustment to the target market worked wonders for Logitech as it was exposed to the mass market segment and by the Fiscal Year 2006 it generated 89% of its revenues from the retail market.
In less then two years, at the brink of the Millennium posed huge threats to its closest competitor Microsoft and it now positioned itself as the company providing accessories to users of PC rather than only novel buyers.

Logitech's management soon realized that in order to rule the market it was necessary to concentrate on the basic principle of Marketing and to employee the "You" attitude with the customers and actually finding out what they want rather then mere assumptions. For this purpose a more flat ...Show more

Summary

Fundamentally, we don't sell to people who buy new PC's, only in part. We sell to people that use PC's so our base is enormous," De Luca, President and CEO of Logitech International remarked while reporting and analyzing his best sales figures ever in the fourth quarter of 2006…
Author : ywalker
Logitechs Quality of Strategy essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Logitechs Quality of Strategy"
with a personal 20% discount.
Grab the best paper

Related Essays

Total Quality Management
The existing market players are witnessing threats from new entrants which have the potentiality of the gaining competitive advantage over its competitors. Apart from profitability, increase in market share the company needs to focus on adhering with the protectionist, import restrictions, tariff, subsidies policies.
7 pages (1750 words) Case Study
Applebees Strategy
"Our current operating strategy is to focus on increasing comparable sales and average unit volumes in existing restaurants by improving the fundamentals of Applebee's concepts and placing less emphasis on new restaurants development for company-owned markets in past.
11 pages (2750 words) Case Study
Manfucturing quality sys
In order to cut the costs and tide over the situation the company has decided to concentrate on the modification and development of the purchase and material management. As a materials manager I have the responsibility of managing the department. Automated inventory system must be implemented to manage the stock, purchase and reorder of the spare parts.
10 pages (2500 words) Case Study
Quality Management Case Study
In order to attain ISO 9001:2000 certification, the most important thing is the quality assurance at different stages till meeting the customer requirements and continuously keeping the standard by efficient quality management system. This is mainly attained by being customer oriented and with Quality Management System (QMS).
15 pages (3750 words) Case Study
Manufacturing Strategy
The first strategy is establishing strong links with the market. The EME industry has maintained a strong feedback loop with the processing, engineering, research, design and production functions. It has nurtured market sensitivity so as
2 pages (500 words) Case Study
Strategy
The vision is also organized in a manner that it provides definition for long-term outcomes for various projects as well as the frameworks with which this vision shall be achieved. This is the most
3 pages (750 words) Case Study
Total Quality Management
The partners’ ideas are focused on creating a customer-oriented culture. By implementing training program for new managers and employees
1 pages (250 words) Case Study
Quality Service Management
Spencer he had experienced a lot of difficulties while his stay at Remington Hotel which was not at all a very pleasant experience for him or his family. There were major service quality gaps in the form of knowledge, service, communications, and quality standards. The first
5 pages (1250 words) Case Study
Leadership in Quality
The belief of firms’ concentration on quality alone has contributed numerous undoing to other relevant aspects of business operation such as audited financial statements, stock analysis, ethical behavior and
2 pages (500 words) Case Study
Quality television
program to ensure its success, the skills of the performers and producers and the possibility of a program to generate a dedicated genre specific audience database due to the programmes originality, creativity and seriousness (Orlebar 2011). Based on this a simple definition
2 pages (500 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation