From OEM to Retail; The case of Logitech International

University essay from Lunds universitet/Företagsekonomiska institutionen

Abstract: Within the dissertation I want to examine the extent to which organizations which are present in an Original Equipment Market (OEM) have to change their organizational configuration and strategy development systems to be able to compete profitably within the retail market. I have chosen to analyze Logitech International S.A. as the subject matter of analysis as these have been able to successfully establish a retail base from initially being an OEM supplier. Logitech’s approach to strategy formulation and configurational structure has changed dramatically during the last five years. In my view, analyzing these changes will provide an insight into the required alternations as Logitech is currently one of the leaders within the retail input peripherals market. For the purpose of my dissertation I have assumed that Logitech is and has been a ‘normal’ well established OEM producer of input peripherals. After having implemented severe changes Logitech now has managed to successfully break the dependence on the OEM sector and establish themselves within the retail sector. To determine whether these changes were necessary and whether such changes can be applied to other companies within the OEM we have asked the questions: • What were the past strategic and configurational conditions prior the transformation? • What were the strategic and configurational conditions after the transition? • How can this be applied to generate a model for firms in similar industries and circumstances? The aim of the dissertation is to try to establish a model which helps OEM manufacturers in moving into the retail market based on my findings on the developments within Logitech. It is not the purpose of the dissertation to provide a step by step manual but to create a general understanding of the implications it entails. In order to do answer the question I will analyze how strategy development has changed between the two time periods. Furthermore I will analyze how these have been integrated within the firm in terms of configurational changes.

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