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Logitech Confidential




     Welcome



On Case Logitech
Logitech Confidential




Presented By:

ID              Name                   Program

11104012        Md. Mominul Islam      MBA
12104012        Rajib Bosak            MBA

12104017        Dilip Chandra Ghosh    MBA

12104025        Md. Kuddus             MBA
12104016        Md. Abdul Al Mamun     MBA
11104032        Md. Arifuzzaman Miah   MBA
Logitech Confidential



                             Logitech
•   “Logitech is a world leader in global provider of personal computer
    accessories headquartered in Romanel-sur-Morges, Switzerland. The
    company develops and markets products like peripheral devices for PCs,
    including keyboards, mice, microphones, game controllers and webcams.
    Logitech also makes home and computer speakers, headphones, wireless
    audio devices, as well as audio devices for MP3 players and mobile
    phones.”
•   Logitech purpose is to provide user-friendly interfaces with agility and low
    cost.

Founded           Switzerland (October 2, 1981)

                  •   Daniel Borel
Founders          •   Pierluigi Zappacosta
                  •   Giacomo Marini
Logitech Confidential


                 Romanel-sur-Morges
Headquarters:
                   Switzerland.
Area served : Worldwide

Website      : www.logitech.com

Industry     : Computer peripherals

             •   Guerrino De Luca (Chairman and acting CEO)
Key people   •   Erik Bardman (SVP, Finance and CFO)


Logo         :
Logitech Confidential
                CURRENT SITUATION

 Current performance:
• 1981 – Established in Switzerland by Daniel Borel & Pierluigi
  Zappacosta & Giacomo Marini.
• 1982 – introduces its first computer mouse, the P4
• 1984 – introduces the C7, which sells for under $100 and does
  not require a separate power supply.
• 1989 –introduces the Series 9 mouse.
• 1997 –first USB mouse
• 2000 –Optical sensor to track movement mouse.
• 2003 – exceeds $1b in annual revenue; ships its 500m mouse
• 2005 – opens new facility in Suzhou, China
• 2006 – 130 new products; 143m products shipped worldwide
Logitech Confidential

                     LOGITECH TODAY
• Global operations
   – California – marketing, finance, and logistics (some R&D)
   – Switzerland – research and development (programming)
   – Ireland – design, mechanical engineering, sales support
   – Netherlands – European distribution
   – Taiwan – worldwide operations
   – Suzhou, China – manufacturing
• Performance
   – more than 11000 employees
   – distribution in more than 100 countries
   – projected sales, $2.4 billion (11% OEM; 89% retail)
Logitech Confidential



                      FINANCIAL INFORMATION


                      Mar       Mar 2010 Mar 2011   Mar 2012
                      2009
Revenues              2.209B    1.967B    2.363B    2.316B
Gross Profit          691.23M   626.89M   836.50M   776.59M
Net Income            107.03M   64.95M    128.46M   71.45M
Assets                1.422B    1.600B    1.862B    1.856B
Current Liabilities   289.29M   440.29M   470.72M   487.79M
Shareholder's         997.70M
                                999.71M   1.205B    1.150B
Equity
Net change in Cash    10.4      -172.8    158.0     0.4
Logitech Confidential

            LOGITECH PRODUCTS

o Keyboards
o Webcams
o Speakers
o headphones
o Gaming devices
o Network music systems
o Video-security solutions
o Remote controls
o Digital Writing
Logitech Confidential

            LOGITECH PRODUCTS




1982                      1984                                     1989




                                2012

       Ii’s products are now distributed worldwide, in over 100 countries.
Logitech Confidential

                     TOP MANAGEMENT




                                     Guerrino De Luca
                          Chairman of Logitech's board of directors
                          Acting President & Chief Executive Officer




   Erik Bardman                     Junien Labrousse                     Werner Heid
 Sr. Vice President               Executive Vice President             Sr. Vice President
Chief Financial Officer                   Products                     Sales & Marketing
       Finance
Logitech Confidential




                 Vision Statement
   The interface that links people and information will
transform the way they work, learn, communicate & play

                Mission Statement
 Logitech brings to market tools that enrich the interface
             between people and information
Logitech Confidential

        EXTERNAL ENVIRONMENT                                  GENERAL


The company is facing a tremendous competition of its operating business. The
products of Logitech are highly competitive overall world. The main competitive
factors for the company are given below:

Frequent introduction of new products.
Rapid technological advances.
Competitors frequently cut prices of their   products.
Product quality and reliability.
Availability of products
Marketing and distribution capability.
Service and support.

Above are the main threats for the company. So if company want to survive in
competition ,must have to concentrate above factors.
Logitech Confidential
    STRENGTHS OF THE COMPANY ARE WORLDWIDE REPUTATION,
   QUALITATIVE PRODUCTS, ADEQUATE RESOURCE, EXPERIENCED
   EMPLOYEE, EXCELLENT MARKETING STRATEGY, AVAILABILITY OF
              PRODUCTS, WORLDWIDE MARKETING.

 THE COMPANY OPERATES ITS BUSINESS ON A GEOGRAPHIC BASIS.
THE COMPANY REPORTABLE OPERATING SEGMENTS CONSISTED OF
  THE AMERICAS, CHAINA AND ASIA PACIFIC. THE RETAIL SEGMENT
OPERATED LOGITECH- OWNED RETAIL STORES IN THE CHAINA AND IN
                  INTERNATIONAL MARKETS.

                         Industry environment
The local companies of China are trying to emulate with multinational
  companies. The models of Chinese companies are vary from one to another.
  But generally offers qualitative products at a chipper price. Firstly Chinese
  companies try to take idea about concern industry and try to become second
  position in their home market rather than third or fourth position. It is true that
  they are not economically viable but day by day progressing.
Logitech Confidential

                    INTERNAL ENVIRONMENT

                         Corporate Structure

 Matrix structure of management.



                        Corporate Culture

 Global mindset.
 Efficiency.
 Transparency and visibility
 Strong project management practices.
Logitech Confidential

                           MARKETING

Logitech operates their business over the California,Switzerland,China and
  many other countries.Logitech `s products distribution in more than 100
  countries.Logitech has sales apporach are retail sales,direct and indirect
  distribution channels and business with others company.


                            Marketing mix

 Product: Innovative products internationally.
 Price: Buying power of international market.
 Promotion: Logitech should continue promotion of its products on the
  ground of innovation, style and technical elegance, internationally.
 Place: Eastern Europe, Middle East, and North Africa regions, Americas
  and in Asia Pacific in Asian
Logitech Confidential


                        FINANCE
 In 2008-2009 hit hard on Logitech`s business.
 Sales figures were decrease $2.00 bill. From 2.2 bill in 2010
  to 2009.
 Operating income was also decrease $78 mill from $110 mill
  the previous year.
 Net income was decrease $65 mill from $107 mill in the
  previous year.
 Gross margin was increase 31.9% to 31.3% in previous year.
Logitech Confidential


                      SWOT ANALYSIS


    Strengths        Weaknesses        Opportunities        Threats

Strong            Online           Online Market    Bad Economy
Management         Presence          Fragmented       Mature Markets
Brand Name        Cost Structure   Marke             Intense
Unique Products   Customer         New Services     Competition
Cost Advantages   Service           New Products     Political Risk
Logitech Confidential


    IDENTIFICATION OF STRATEGIC ISSUES
              Logitech implemented a strategy of innovation

 To enhance products with the technologic.
 To create the most advanced software.
 Most innovative and collaborative experience for customer.
 To enhance future portfolios.
 Expend the depth of the peripheral product line
 Quick cam PC of connecting corporation.
 Develop close partnerships with specific platforms.[Phone and
  Blackberry].
 Produce apps [applications for each platform. And
 Produce ` platform neutral’ apps by using he mobile web.
Logitech Confidential


                 Recommendations

 To seek long term profitable growth.
 Offering the highest quality products.
 Promote more electronic or digital peripherals.
 Promote environmental friendlier products.
 The passion and dedication of employees.
 Setup and distribute domestically in China and India.
 Focused strategies on reducing dependencies on suppliers
  including retail sales channel.
 Maintain current strategy.
 Brand Establishment.
 Mouse Advancements.
Logitech Confidential




THANKS EVERYBODY TO BE PATIENT

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Logitech Case Study

  • 1. Logitech Confidential Welcome On Case Logitech
  • 2. Logitech Confidential Presented By: ID Name Program 11104012 Md. Mominul Islam MBA 12104012 Rajib Bosak MBA 12104017 Dilip Chandra Ghosh MBA 12104025 Md. Kuddus MBA 12104016 Md. Abdul Al Mamun MBA 11104032 Md. Arifuzzaman Miah MBA
  • 3. Logitech Confidential Logitech • “Logitech is a world leader in global provider of personal computer accessories headquartered in Romanel-sur-Morges, Switzerland. The company develops and markets products like peripheral devices for PCs, including keyboards, mice, microphones, game controllers and webcams. Logitech also makes home and computer speakers, headphones, wireless audio devices, as well as audio devices for MP3 players and mobile phones.” • Logitech purpose is to provide user-friendly interfaces with agility and low cost. Founded Switzerland (October 2, 1981) • Daniel Borel Founders • Pierluigi Zappacosta • Giacomo Marini
  • 4. Logitech Confidential Romanel-sur-Morges Headquarters: Switzerland. Area served : Worldwide Website : www.logitech.com Industry : Computer peripherals • Guerrino De Luca (Chairman and acting CEO) Key people • Erik Bardman (SVP, Finance and CFO) Logo :
  • 5. Logitech Confidential CURRENT SITUATION Current performance: • 1981 – Established in Switzerland by Daniel Borel & Pierluigi Zappacosta & Giacomo Marini. • 1982 – introduces its first computer mouse, the P4 • 1984 – introduces the C7, which sells for under $100 and does not require a separate power supply. • 1989 –introduces the Series 9 mouse. • 1997 –first USB mouse • 2000 –Optical sensor to track movement mouse. • 2003 – exceeds $1b in annual revenue; ships its 500m mouse • 2005 – opens new facility in Suzhou, China • 2006 – 130 new products; 143m products shipped worldwide
  • 6. Logitech Confidential LOGITECH TODAY • Global operations – California – marketing, finance, and logistics (some R&D) – Switzerland – research and development (programming) – Ireland – design, mechanical engineering, sales support – Netherlands – European distribution – Taiwan – worldwide operations – Suzhou, China – manufacturing • Performance – more than 11000 employees – distribution in more than 100 countries – projected sales, $2.4 billion (11% OEM; 89% retail)
  • 7. Logitech Confidential FINANCIAL INFORMATION Mar Mar 2010 Mar 2011 Mar 2012 2009 Revenues 2.209B 1.967B 2.363B 2.316B Gross Profit 691.23M 626.89M 836.50M 776.59M Net Income 107.03M 64.95M 128.46M 71.45M Assets 1.422B 1.600B 1.862B 1.856B Current Liabilities 289.29M 440.29M 470.72M 487.79M Shareholder's 997.70M 999.71M 1.205B 1.150B Equity Net change in Cash 10.4 -172.8 158.0 0.4
  • 8. Logitech Confidential LOGITECH PRODUCTS o Keyboards o Webcams o Speakers o headphones o Gaming devices o Network music systems o Video-security solutions o Remote controls o Digital Writing
  • 9. Logitech Confidential LOGITECH PRODUCTS 1982 1984 1989 2012 Ii’s products are now distributed worldwide, in over 100 countries.
  • 10. Logitech Confidential TOP MANAGEMENT Guerrino De Luca Chairman of Logitech's board of directors Acting President & Chief Executive Officer Erik Bardman Junien Labrousse Werner Heid Sr. Vice President Executive Vice President Sr. Vice President Chief Financial Officer Products Sales & Marketing Finance
  • 11. Logitech Confidential Vision Statement The interface that links people and information will transform the way they work, learn, communicate & play Mission Statement Logitech brings to market tools that enrich the interface between people and information
  • 12. Logitech Confidential EXTERNAL ENVIRONMENT GENERAL The company is facing a tremendous competition of its operating business. The products of Logitech are highly competitive overall world. The main competitive factors for the company are given below: Frequent introduction of new products. Rapid technological advances. Competitors frequently cut prices of their products. Product quality and reliability. Availability of products Marketing and distribution capability. Service and support. Above are the main threats for the company. So if company want to survive in competition ,must have to concentrate above factors.
  • 13. Logitech Confidential STRENGTHS OF THE COMPANY ARE WORLDWIDE REPUTATION, QUALITATIVE PRODUCTS, ADEQUATE RESOURCE, EXPERIENCED EMPLOYEE, EXCELLENT MARKETING STRATEGY, AVAILABILITY OF PRODUCTS, WORLDWIDE MARKETING. THE COMPANY OPERATES ITS BUSINESS ON A GEOGRAPHIC BASIS. THE COMPANY REPORTABLE OPERATING SEGMENTS CONSISTED OF THE AMERICAS, CHAINA AND ASIA PACIFIC. THE RETAIL SEGMENT OPERATED LOGITECH- OWNED RETAIL STORES IN THE CHAINA AND IN INTERNATIONAL MARKETS. Industry environment The local companies of China are trying to emulate with multinational companies. The models of Chinese companies are vary from one to another. But generally offers qualitative products at a chipper price. Firstly Chinese companies try to take idea about concern industry and try to become second position in their home market rather than third or fourth position. It is true that they are not economically viable but day by day progressing.
  • 14. Logitech Confidential INTERNAL ENVIRONMENT Corporate Structure  Matrix structure of management. Corporate Culture  Global mindset.  Efficiency.  Transparency and visibility  Strong project management practices.
  • 15. Logitech Confidential MARKETING Logitech operates their business over the California,Switzerland,China and many other countries.Logitech `s products distribution in more than 100 countries.Logitech has sales apporach are retail sales,direct and indirect distribution channels and business with others company. Marketing mix  Product: Innovative products internationally.  Price: Buying power of international market.  Promotion: Logitech should continue promotion of its products on the ground of innovation, style and technical elegance, internationally.  Place: Eastern Europe, Middle East, and North Africa regions, Americas and in Asia Pacific in Asian
  • 16. Logitech Confidential FINANCE  In 2008-2009 hit hard on Logitech`s business.  Sales figures were decrease $2.00 bill. From 2.2 bill in 2010 to 2009.  Operating income was also decrease $78 mill from $110 mill the previous year.  Net income was decrease $65 mill from $107 mill in the previous year.  Gross margin was increase 31.9% to 31.3% in previous year.
  • 17. Logitech Confidential SWOT ANALYSIS Strengths Weaknesses Opportunities Threats Strong Online Online Market Bad Economy Management Presence Fragmented Mature Markets Brand Name Cost Structure Marke Intense Unique Products Customer New Services Competition Cost Advantages Service New Products Political Risk
  • 18. Logitech Confidential IDENTIFICATION OF STRATEGIC ISSUES Logitech implemented a strategy of innovation  To enhance products with the technologic.  To create the most advanced software.  Most innovative and collaborative experience for customer.  To enhance future portfolios.  Expend the depth of the peripheral product line  Quick cam PC of connecting corporation.  Develop close partnerships with specific platforms.[Phone and Blackberry].  Produce apps [applications for each platform. And  Produce ` platform neutral’ apps by using he mobile web.
  • 19. Logitech Confidential Recommendations  To seek long term profitable growth.  Offering the highest quality products.  Promote more electronic or digital peripherals.  Promote environmental friendlier products.  The passion and dedication of employees.  Setup and distribute domestically in China and India.  Focused strategies on reducing dependencies on suppliers including retail sales channel.  Maintain current strategy.  Brand Establishment.  Mouse Advancements.

Editor's Notes

  1. Notes: Mattox Heads up strategy - he will be behind looking into some of the more market entry strategies Has significant experience within the company, so he knows what they are capable of and what will integrate the best with Dell's strengths Has a broader perspective than simply on current operations Cannon Will be a signficant player in the expansion into growth markets abroad Has experience with global hardware manufacturing and marketing Will also be able to give insight into better operating procedures and cost cutting initiatives Garriques New addition to the management team Comes over from Motorola where he successfully spearheaded an image makeover (Razr, etc) Will hopefully be able to complete similar makeover of the tired Dell brand