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Risks
1. Risk of Competition: Logitech faces competition from companies such as Microsoft, Dell, and Apple, who are all strong players in the PC peripheral market.
2. Risk of New Technology: Logitech and other companies in the peripheral market are constantly adapting to changes in technology, such as advancements in gaming technology, which can have a major impact on their products.
3. Risk of Commoditization: Logitech’s products are limited in terms of product differentiation, which could lead to commoditization of their products in the long-term.
4. Risk of Economic Slowdown: Logitech’s sales can be heavily impacted by any economic downturn, such as an increase in unemployment or decrease in consumer spending.
5. Risk of Quality Issues: Logitech may be exposed to quality issues, as most of their products are mass-produced and quality control measures may not be up to par.
6. Risk of Regulatory Decisions: Many of Logitech’s products are covered under various regulatory and safety standards. Any changes in these regulations or safety standards may significantly impact Logitech’s products.