Logitech Marketing
Case Summary
Less than a decade since the start of the company, Logitech Inc. became one of the top corporate giants in the computer mouse/pointing device market with big rivals such as Microsoft and KYE. Founded on October 2, 1981 by Pierluigi Zappacosta and Daniel Borel in Switzerland, Logitech was initially in the business of developing software, which soon extended to hardware after winning large contracts with Ricoh and Swiss Timing.
In 1982, less than 6 months since the company was founded, Logitech quickly secured the rights to market a mouse that was developed by Depraz, a Swiss watch company. This launched Logitech into the mouse/pointing device business. In 1984, Logitech secured a contract with Hewlett-Packard for OEM mice, which were mice manufactured by Logitech but sold and marketed under Hewlett-Packard. In order for Logitech to better operate under their newly secured contract they took over the rights to manufacture and market their own mice. This was a major step in Logitech’s emergence as a corporate leader in the OEM mouse market. It led to additional contracts with several well-known companies such as Apollo and AT&T and helped Logitech branch out into different segments of the computer technology industry.
Symptoms
INTERNAL
Corporate Culture
Logitech took pride in being global and operations orientated. Logitech saw themselves as a global business with a culturally diverse workforce. Operations were also an important aspect of Logitech’s corporate culture. Product developments were oriented around technical components and cutting edge design.
These same orientations were also transferred to the workplace. At Logitech the workplace atmosphere was usually informal and free-spirited. Projects at Logitech were not strictly organized or managed by a central authority. It was common to work on multiple unrelated projects, official or ‘unofficial’, in different stages at the same time. Using ‘gut feeling’ instead of
Less than a decade since the start of the company, Logitech Inc. became one of the top corporate giants in the computer mouse/pointing device market with big rivals such as Microsoft and KYE. Founded on October 2, 1981 by Pierluigi Zappacosta and Daniel Borel in Switzerland, Logitech was initially in the business of developing software, which soon extended to hardware after winning large contracts with Ricoh and Swiss Timing.
In 1982, less than 6 months since the company was founded, Logitech quickly secured the rights to market a mouse that was developed by Depraz, a Swiss watch company. This launched Logitech into the mouse/pointing device business. In 1984, Logitech secured a contract with Hewlett-Packard for OEM mice, which were mice manufactured by Logitech but sold and marketed under Hewlett-Packard. In order for Logitech to better operate under their newly secured contract they took over the rights to manufacture and market their own mice. This was a major step in Logitech’s emergence as a corporate leader in the OEM mouse market. It led to additional contracts with several well-known companies such as Apollo and AT&T and helped Logitech branch out into different segments of the computer technology industry.
Symptoms
INTERNAL
Corporate Culture
Logitech took pride in being global and operations orientated. Logitech saw themselves as a global business with a culturally diverse workforce. Operations were also an important aspect of Logitech’s corporate culture. Product developments were oriented around technical components and cutting edge design.
These same orientations were also transferred to the workplace. At Logitech the workplace atmosphere was usually informal and free-spirited. Projects at Logitech were not strictly organized or managed by a central authority. It was common to work on multiple unrelated projects, official or ‘unofficial’, in different stages at the same time. Using ‘gut feeling’ instead of
References: Cavusgil, Tamer, Gary Knight, and John Risenberger. International Business: Strategy, Management, and the New Realities. Page: 385 – 404. Prentice Hall, 2008. Kartika. September 2008. <http://en.wikipedia.org/wiki/Logitech> Smith, Brock. Logitech. Ontario, Canada: Ivey Management Services, 1992. Logitech. <http://www.logitech.com/en-us/home> Logitech. History. 2007. <http://www.logitech.com/lang/pdf/logitech_history_200703.pdf> Logitech. Most Important Products. Fremont, California. 23 November 2010. <http://www.logitech.com/lang/pdf/logitech_most_important_products.pdf> Reference for Business. History. Switzerland: Moulin du Choc D, CH-1122. <http://www.referenceforbusiness.com/history2/35/Logitech-International-SA.html>