A SWOT analysis of the Logi-Tech startups
Logitech. Heard of it somewhere? It is a new domain that has surfaced with a huge potential for disruption. Applying the latest technological trends in the logistics domain might just be the next big thing. In this article, we’ve presented a SWOT analysis of the scope of startups in the Logitech industry.
The term ‘logistics’ today is not exclusive to being a mere B2C-type business. It has transformed into a tech-related industry. Almost all new technologies are being applied in this space: from data analytics to AI to even IoT. The very fact that the industry has gone beyond its traditional strength to meet the demands of the growing need of consumers is a big strength in itself.
This demand for logistics services gives a dire need for businesses such as FedEx and Blue Dart to change their supply chain management strategy to cater to the needs of the customer. This is where startups have been able to successfully innovate and operate large scale transactions of loads. B2B-based Logitech startups have become a go-to for investors and venture capitalists.
In just over 7 months this year, the Logitech industry has witnessed a capital infusion of over $8.1 billion in just across 12 deals. That’s almost 8-fold the amount raised last year , over across 20 deals.
In an interview with the magazine YourStory; Alok Goyal, Managing Partner, Stellaris Venture Partners, quoted the fact that the B2B market differs from the B2C market, where the winner takes all. He further says that there is enough space to accommodate 10–20 billion-dollar companies that can perform well symbiotically.
It is no wonder then, that investors are willing to pump in so much money into this industry. To testify this, India produced its first unicorn in the Logistics space this year — Delhivery. Founded in 2011, It has performed over 450 million B2B and B2C deliveries. Another startup Locus, which received marquee funding from Tiger global, boasts Deuchte Post’s Blue Dart and online grocery brand BigBasket as its large scale clients. Similarly, other B2B startups in the domain such as Blackbuck and Rivigo attained the soonicorn status.
While innovations are happening in the business models of Logitech-based startups at a very healthy rate, the way logistics are being carried out is still conventional. Trucks are currently used as the main mode of transportation and keeping a track of trucks is not so easy, with the number of vehicles being used.
Another scope for startups in the logistics industry today are the difficulties faced to match supply and demand and finding the right technology to match it.
One main threat for all Logitech based companies is the challenge in transportation of goods due to various external factors such as the political climate which continues to remain a hurdle.
But there lies the scope for innovation. Newer technologies such as drones and IoT will help to simplify and completely automate the process of logistics. This makes logitech one of the most exciting fields to work in. The Logitech industry is expected to grow 3-fold in the next 2 years. This makes it an exciting domain full of promises.
