LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT
In 2005 Logitech launched a new and improved cordless presenter which was the next generation product of its presentation device line. The entire process to launch was unusual for Logitech as the following factors took place: a Director of Engineering played a key marketing role, a new method of customer feedback and research was used to decide on product features and the entire project was outsourced to a firm in Taiwan - which was a first for this product unit. The case goes over the issues and challenges that were faced along the way and how marketing and engineering had to work together in an unusual pairing in order to get to a successful product launch.
Swot Analysis of "LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT" written by Jean-Philippe Deschamps, Michele Barnett Berg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Logitech Product facing as an external strategic factors. Some of the topics covered in LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT case study are - Strategic Management Strategies, Design, Marketing, Product development, Technology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT casestudy better are - – technology disruption, wage bills are increasing, increasing commodity prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Logitech Product, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Logitech Product operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT can be done for the following purposes –
1. Strategic planning using facts provided in LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT case study
2. Improving business portfolio management of Logitech Product
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Logitech Product
Strengths LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Logitech Product in LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT Harvard Business Review case study are -
Strong track record of project management
– Logitech Product is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Logitech Product has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Logitech Product to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Logitech Product are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Logitech Product digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Logitech Product has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Learning organization
- Logitech Product is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Logitech Product is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Logitech Product has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Innovation driven organization
– Logitech Product is one of the most innovative firm in sector. Manager in LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Logitech Product in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Organizational Resilience of Logitech Product
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Logitech Product does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Leadership & Managing People field
– Logitech Product is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Logitech Product in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Logitech Product in the sector have low bargaining power. LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Logitech Product to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT are -
Slow decision making process
– As mentioned earlier in the report, Logitech Product has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Logitech Product even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Capital Spending Reduction
– Even during the low interest decade, Logitech Product has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Products dominated business model
– Even though Logitech Product has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Logitech Product has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Increasing silos among functional specialists
– The organizational structure of Logitech Product is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Logitech Product needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Logitech Product to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Logitech Product, firm in the HBR case study LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Logitech Product has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Workers concerns about automation
– As automation is fast increasing in the segment, Logitech Product needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Logitech Product has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT, it seems that the employees of Logitech Product don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Logitech Product has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT are -
Manufacturing automation
– Logitech Product can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Logitech Product can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Logitech Product can use these opportunities to build new business models that can help the communities that Logitech Product operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Logitech Product to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Logitech Product to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Logitech Product to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Logitech Product can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Logitech Product can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Logitech Product is facing challenges because of the dominance of functional experts in the organization. LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Logitech Product has opened avenues for new revenue streams for the organization in the industry. This can help Logitech Product to build a more holistic ecosystem as suggested in the LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT case study. Logitech Product can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Logitech Product in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Logitech Product can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Logitech Product in the consumer business. Now Logitech Product can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Logitech Product has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT are -
Environmental challenges
– Logitech Product needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Logitech Product can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Technology acceleration in Forth Industrial Revolution
– Logitech Product has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Logitech Product needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Logitech Product will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Logitech Product.
Consumer confidence and its impact on Logitech Product demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Logitech Product can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Logitech Product business can come under increasing regulations regarding data privacy, data security, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Logitech Product with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Logitech Product needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Logitech Product high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Logitech Product in the Leadership & Managing People sector and impact the bottomline of the organization.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of LOGITECH: LEARNING FROM CUSTOMERS TO DESIGN A NEW PRODUCT is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Logitech Product needs to make to build a sustainable competitive advantage.
