Lojack Business Analysis

Company And Background

• LoJack Corporation is a worldwide provider founded in 1979. The corporation is leader in development and delivery system by tracking and recovering stolen vehicles headed for chop shops based on based on radio frequency (RF) technology. The company has been global leader in this market and has recently extended its service to newer market.
• LoJack introduced products such as LoJack Vehicles, LoJack for Motorcycles

               LoJack Construction Equipment for fleet managers and equipment owners, as

               well as LoJack Early Warning System and System SafetyNet by LoJack.

• LoJack Executive Vice President and General Counsel, Tom Wooters, noted that in 2007 company needed to work to expand their base and mission, while 85 percent of domestic revenue originated through their distribution in 2007.

• LoJack the company was faced with challenges and undertook a new venture strategy that led to produce few new units.

• LoJack invested an average of $12 million a year in new markets to make more opportunities and extend their company.

Question 2

How has LoJack maintained leadership in its industry for 30 years? Is its current position sustainable?

LoJack maintained leadership in its industry by working on its business strategy totally different compare to its competitors, development by investing significant fund into new opportunities and businesses and target more markets, emphasis on market research that they were looking to expand.    

LoJack’s current position might not remain sustainable during current economic recession and the high risk of the business they are in and that’s why company’s strategy needs to focus to find a way a better way to differentiate them even more and not spending massive budget on exploring new opportunities and market segments and instead emphasizing on networking outside the company.

Question 3

How should LoJack invest in generating new sources of growth, given the current recessionary environment?

• A way to generating new sources of growth during economic recession is using organizational ownership model to create new businesses to a designated corporate-level group to develop each business units.

• Another way is by shrinking the budget during economic recession times to work and spend on the right opportunities and necessary development.

• Joint ventures and strategic alliances, which have recently become so popular, can be another way for a company like Lojack that is essential for them to expand their company and their partnerships.

Question 4