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Logitech was one of three companies that dominated the global market for pointing devices for computers. While Logitech had captured a large share of the Original Equipment Manufacturer mouse market, Microsoft was the clear leader in terms of industry standards and dollar share of the retail market. KYE, with a strong presence in Europe, was poised to compete aggressively in North America. Faced with the intensifying competition and eroding margin, Logitech was considering the introduction of an innovative line of ergonomic mice, which promised to change the competitive dynamics of the industry.
- To illustrate the difficulties in maintaining competitive advantage in rapidly changing technology-based businesses.
- To expose students to issues faced by companies as markets mature and become increasingly fragmented.
- To introduce/reinforce concepts like the learning curve, cross-channel ownership, market chain and perceptual maps.
This case has been taught successfully with executives, MBA and undergraduate students.
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