The primary trend noticeable in the external environment is that of the economic pressure on its consumers. Consumers in the throes of economic recession might not be willing to pay more for products. They would expect a cost based competitive advantage. Logitech in the past was not able to present this cost based advantage for its consumers because of the increased costs associated with its operations. Operations units were established in other countries and these facilities required more money to be run efficiently which in turn meant that Logitech would be suffering internal operational costs and hence the costs would be met by adjusting the prices of products (Hoffman, 2011). Competitor companies that are able to manage their operational costs better would be able to offer lesser prices to customers. Logitech has at present consolidated manufacturing, and this does enable the company to present a cost based advantage to its consumers. It also enables the company to focus on products beyond computer peripherals. However, this alone will not solve the problems of risks in the macro environment.
In the past, the strategic direction of Logitech was to check if there were any opportunities in the electronics industry in terms of newer computer peripheral devices and innovate on these lines to take advantage of the market. However, in current times the very nature of peripheral devices is undergoing changes. Companies like Apple have innovated to an extent where they ensure peripheral devices are embedded within their own product systems. For instance, it can be seen that the use of a separate mouse is no longer necessary. In the use of tablets or laptops the mouse is integrated into the product itself. A separate mouse is not required here. In such cases the normal strategy that Logitech uses might not work here. There are chances that the peripheral market of Logitech might disintegrate wit time Logitech at this point has two options, in terms of computer peripheral product manufacturing, the company can invest in video conferencing tools, remote controls and more. These are tools that would be needed by the current population. Research studies show that in current situations more people are using video conferencing tools and the like (Rowlands et al, 2011). Social networking has increased to a greater extent and people are seen to be focused on using these tools. From education to business purposes many uses can be identified. These are tools that cannot be made obsolete, and there would also be a competitive market for them. Hence this is one recommendation that can be made from the case study. The other is that, for long term survival, Logitech must invest in partnerships with computer and telecom manufacturers in order to present applications of products that are compatible with these businesses. A major percentage of people own a Smartphone and hence this could be one an advantageous move for Logitech. This report would like to recommend that Logitech should take advantage of both options. Logitech has diversified over the years but has stayed in the more secure path and has attempted to not take any risks. In more current times it should attempt to diversify taking up more than one option in product making. The strategic input that Logitech should take is about how the computing industry is changing in a complete manner. In the past Logitech looked out for specific opportunities. However, the change at present is such that the opportunity has to be identified in a more holistic manner, else whatever strategic adaption that Logitech might be involved in would only satisfy a very short term purpose.