A Mouse (Maker) Roars at the Industry Giants

Issue 03-20-17   |   Reviewer:   Angelina I. T. Kiser, Ph.D.
Sectors:


Abstract

Logitech's stock has quadrupled with its strong sales of PC accessories that complement products by the likes of Apple, Microsoft, Amazon, and Google. Now the company is looking to move into the smart home business. Logitech plans to find niches that won't necessarily put it in strong competition with industry leaders.

CEO Bracken Darrell says that Logitech will use profits from its PC mouse and keyboard business to fund and enter new areas such as voice-controlled devices, video collaboration, and augmented reality games. One disadvantage for Logitech, though, is that it devotes less than $150 million annually to research and development while competitors such as Microsoft, Google, and Amazon spent $12 billion, $14 billion, and $16 billion last year respectively. However, Darrell says he can succeed by stressing design and marketing.





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