Académique Documents
Professionnel Documents
Culture Documents
02
History
Today
Founded by Daniel Borel, Pierluigi Zappacosta and
Fremont - USA
R&D, Finance, Logistic,
Marketing
Design
EEMEA
Irelan
Europe
d Switzerland
R&D
Asia-Pacific
ChinaProductio
Asia-Pacifi
Taiwan
n
Productio
n
Switzerlan
d
Research and
Development
Fremont
Ireland
Taiwan
China
Finance,
Marketing
and
Logistics
Product
Designing
Manufacturi
ng
Manufacturi
ng
+
Research
and
Developm
ent
That means,
aUS
havewithout
to execute
thewhat
entire
Logitech
operation
In
world
trade,
happen
to the
costs that American
irrespective
ofwould
whether
they
are good
or bad in products?
terms of all
consumers
have
to pay
for Logitech's
the operation functionality
Even they manage to do it,
Operational cost will increase dramatically. (US labor is
around 6 times of Chinese labor)
So the bottom line,
Increased cost will reflect in the selling price
American consumers have to pay USD several hundreds
more for all the products. For ex. USD 40 Mice will be
something like USD 350.
Q2. In aComparative
world without
what happen to
advantagetrade,
/
Specialization
the costs
that American consumers would have
to pay for Logitech's products?
Global
Outsourcing
Competitive Advantage
Economies of Scale
Maximize Efficiencies
Demand conditions
High demand for electronic
products
Government Role
Science-based industrial
parks
Land is given at very
subsidize rates in these
parks
Firm Strategy, structure and
Relating and supporting
rivalry
industries
Competition and rivalry
Well-developed Computer/
among local companies
electronic cluster
Management
China Favored
for
Manufacturing
Cheapest labour
rates in the world
(USD 75 month)
Mass Production