Problem:

However, the company faces future challenges in maintaining this position as a result of the global recession and significant competitive technological pressures in its industry. Separate computer peripherals and auxiliary interface devices are becoming less necessary as technological advances become part of the standard package in computing. Touch screens, built in video and audio devices, and laptop touchpads may eventually erode the need for computer peripherals the very market upon which Logitech has built its success.

Slide 2To help us formulate these strategies, we conducted a SWOT analysis for Logitech.

I wont go through this table because as we explore the strategies we formulated, we will touch on these elements again.

Slide 3First Strategy:

Logitech should continue on its strategy of innovation in PC Pheripherals.

The reasons for these are simple: Although the PC market if declining, but Logitech has very strong Brand equity and is known as a global leader in PC accessories which they can capitalise on to maximise profit.

Secondly, recent consumer trends offer Logitech several opportunities especially for the Keyboard product.

- First is the increasing use of multiple screens. Consumers needs seamless switching between the devices and Logitech can innovate in easy switch technologies.

- Second, Increasingly consumers are using their living rooms for both work and play. 30% of american consumers attach

their PC to their TV, an avenue Logitech can explore

Third, new input technologies such as Touch, gesture and other technolgies can be incorporated to provide better user experience.

Though it is a cash cow for Logitech, but competition from technology giants like Microsoft, Philips and Creative require constant innovation to maintain and even increase market share.

Slide 4:Our second strategy is to actually adopt a growth strategy by penetrating BRIC markets.

Computer penetration per household in these emerging markets continues to grew 40% in the past 10 years. From the under representation of Logitech in these countries as you can see from the graph, there is immense potential for Logitech to

capture greater market share in these countries.

Slide 5: Lastly Logitech should adopt a growth strategy by entering new industries such as through acquisitions.

Why? Their main cash cow PC accessories faces the threat of becoming obsolete due to consumer and technological trends in the computer industry.

Secondly, it is to diversify their portfolio because in 2009, 85% of Logitechs revenue comes from retail sales of peripheral products such as mice, keyboards, speakers etc.

So here we believe that by diversifying their portfolio, Logitech can not only diversify their risk but also increase long term profitability.

Logitech can enter software industry such

as developing mobile apps given the high penetration of mobile devices

They can go into a related industry of communications like instant messaging and video conferencing applications designed for B2B.