The document discusses the history and operations of Logitech, a Swiss computer accessories company. It describes how Logitech was founded in 1981 and became a global leader in computer peripherals. To reduce costs and win major contracts, Logitech opened factories in Taiwan and China in the late 1980s, taking advantage of lower labor costs. Today Logitech has facilities worldwide and continues innovating while leveraging locations for specialized functions like R&D, design, and manufacturing.

1. welcome
On case Logitech
M HAMZA LATIF

2. Logitech
Founded Switzerland
Founders 1) Daniel Borel
2) Pierluigi
Zappacosta
3) Giacomo Marini
Website www.logitech.com
Headquarters Romanel-sur-Morges
Switzerland
Employees More than 11000
Logo

3. Logitech Products
1. Keyboards
2. Webcams
3. Speakers
4. headphones
5. Gaming devices
6. Network music systems
7. Video-security solutions
8. Remote controls
9. Digital Writing

4. Case Facts
1. Founded in 1981 in Apples, Switzerland
2. Logitech is a world leader in global
provider of personal computer
accessories.
3. First company to introduce infrared and
wireless and wireless mouse technology.
4. Logitech’s Strategic Locations:
I. Switzerland
II. United States of America (California)
III. Taiwan and china

5. Case
1. Company generates annual sales of
over $3.32 billion.
2. It was the first company to introduce a
mouse that used infrared tracking.
3. It was the first to introduce wireless
mice and keyboard.
4. Logitech is differentiated from
competitors by its continuing innovation.
5. Logitech still undertakes basic R&D
work in Switzerland, where it has
several hundred employees.

6. Case
1. Most of the corporate functions are
run out of offices in Fremont,
California.
2. Outsourced ergonomic design to
Ireland.
3. In the late 1980s when it opened a
factory in Taiwan.
4. Logitech was trying to win two of the
most prestigious OEM customers
(APPLE & IBM).

7. case
1. Logitech offer a better-designed
product with low cost.
2. But cost was a factor in the decision.
3. The solution: manufacture in Taiwan.
4. Taiwan offered qualified people and
well-developed supply base for parts.
5. Logitech signed the lease to sizing
up.
6. Shortly afterward, Logitech won the
OEM contract with apple.

8. case
1. In Taiwan; the plant’s total capacity
increased to 10 million mice per year.
2. By the late 1990s, Logitech needed
more production capacity.
3. This is Era to turned toward China
4. A wireless infrared mouse “Wanda” one
of the Logitech's biggest seller, is
assembled in China.
5. Logitech owned factory, the factory
employees 4000 people.

9. Case
1. Logitech takes $8, which is used to
fund R&D.
2. Distributer and retailer take $15 goes
to the supplies that make Wanda’s
parts.
3. Logitech in not alone in exploiting in
China to manufacture products.
4. Intel now produces some 50million
chips a year in china.

10. Case issue
1. Logitech’s manufacturing facility was
in US, the cost of production was
high
2. Trying to win two major contracts
Apple computers and IBM.

11. Solutions
 If there was no free trade Americans
consumers would have paid much more.
 Cost of production in China and Taiwan
is low due to factor endowment of those
countries. Also, Logitech had first mover
advantage.
 Comparative Advantage
1. US and Swiss – R&D
2. Ireland – design
3. Taiwan and china – manufacturing and
assembly.

12. Solutions
 The 650 employees in US and Swiss create
more value.
 Porter’s Diamond – related and supporting
industries, customers and technological
advantage.
 Porter’s Diamond
1. Strategy of lowering cost of production and
relative price of ALPS mouse.
2. Advantages in skilled labor, cheap
infrastructure
3. Expanding computer industries
4. Related industries – technology based
industries(Techno park)

13. Solutions
 Lower cost of labor, cheap infrastructure,
related and supporting industries, customer
demand
 Increase in employment in china, Chinese
economy will improve, living standard of the
people
 Consumers of developed countries will be
able to purchase quality product at relatively
low price. Develop countries can specialize in
the area of there efficiency.
 Unemployment of unskilled labors in the
same countries, domestic industries will
suffer.