Competitive Advantage In Through Efficient â€Myassignmenthelp.Com

Question: Discuss About The Competitive Advantage In Through Efficient? Answer: Introducation Logitechs decision to shift its corporate headquarters from Switzerland to Fremont, California was a strategic business decision. In business, corporate headquarters is an important location that drives innovation, marketing and distribution of a firms product. In this respect, its location should be strategically located in an environment which entails a company's key consumers. According to Finne and Sivonen (2008), locating a firms headquarters near or in its primary market enhances its competitive advantage. Companies exist to serve the demand of their customers. Consequently, firms cannot attain profitability if they do not understand its customers preference. As indicated in the case study, the major technology firms that Logitech targeted with its producAnswer:wever, attracting these high technology enterprises required Logitech to have a good comprehension of what they like and how they operate. As a result, the company shifted its headquarters to California to increase its interaction with its key customers. In a competitive sector like the one Logitech operates in, gaining insights on customers preferences is a key competitive advantage. Customers prefer to purchase products from companies that they feel produce products which address their requirements. According to Shenkar and Luo (2008), corporate headquarters functions as the heart of a firms product research and development activities. However, product research and development can only be attained through interaction with the firms key customers. Moreover, the move could have been motivated by marketing purposes. With an already established computer peripheral market, the United States provided an ideal environment for Logitech to sell its brand locally and globally. Although several perspectives can be applied to explain Logitechs decision to shift its headquarters, the move intended to increase the companys international presence and profitability in the long term. References Finne, S., Sivonen, H. (2008). The Retail Value Chain: How to Gain Competitive Advantage through Efficient Consumer Response (ECR) Strategies. Philadelphia: Kogan Page Publishers. Shenkar, O., Luo, Y. (2008). International Business. Los Angeles: SAGE.