Logitech – the World’s Largest Producer of Computer Mice
Best known as one of the world’s largest producers of computer mice, Logitech in many ways is the epitome of the modern global corporation. Founded in 1981 in Apples, Switzerland, by two Italians and a Swiss, the company now generates annual sales of more than S1 billion, most from products such as mice, keyboards, and low-cost video cameras that cost under $100. Logitech made its name as a technological innovator in the highly competitive business of personal computer peripherals.
Among other things, it was the first company to introduce a mouse that used infrared tracking, rather than a tracking ball, and the first to introduce wireless mice and keyboards. Logitech is differentiated from competitors by its continuing innovation – in 2003 it introduced 91 new products – its high brand recognition, and its strong retail presence. Less obvious to consumers, but equally important, has been the way the company has configured its global value chain to lower production costs while maintaining the value of those assets that lead to differentiation.
Logitech still undertakes basic R&D work (primarily software programming) in Switzerland where it has 200 employees. The company is still legally Swiss, but the corporate headquarters are in
Fremont, California, close to many of America’s high-technology enterprises, where it has 450 employees. Some R&D work (again, primarily software programming) is also carried out in
Fremont. Most significantly, though, Fremont is the headquarters for the company’s global marketing, finance, and logistics operations. The ergonomic design of Logitech’s products- their look and feel – is done in Ireland by an outside design firm. Most of the Logitech’s products are manufactured in Asia.
Logitech’s expansion into Asian manufacturing began in the late 1980s when it opened a factory in
Taiwan. At the time, most of its mice were produced in the US. Logitech was trying to win two of the most prestigious OEM customers – Apple
Among other things, it was the first company to introduce a mouse that used infrared tracking, rather than a tracking ball, and the first to introduce wireless mice and keyboards. Logitech is differentiated from competitors by its continuing innovation – in 2003 it introduced 91 new products – its high brand recognition, and its strong retail presence. Less obvious to consumers, but equally important, has been the way the company has configured its global value chain to lower production costs while maintaining the value of those assets that lead to differentiation.
Logitech still undertakes basic R&D work (primarily software programming) in Switzerland where it has 200 employees. The company is still legally Swiss, but the corporate headquarters are in
Fremont, California, close to many of America’s high-technology enterprises, where it has 450 employees. Some R&D work (again, primarily software programming) is also carried out in
Fremont. Most significantly, though, Fremont is the headquarters for the company’s global marketing, finance, and logistics operations. The ergonomic design of Logitech’s products- their look and feel – is done in Ireland by an outside design firm. Most of the Logitech’s products are manufactured in Asia.
Logitech’s expansion into Asian manufacturing began in the late 1980s when it opened a factory in
Taiwan. At the time, most of its mice were produced in the US. Logitech was trying to win two of the most prestigious OEM customers – Apple