Logitech and China

Logitech can be considered as a practical example of success in International trade. Logitech, with a well managed strategy could take advantage during these past few years of the globalization of production within different markets. First by outsourcing in Taiwan, then in China, Logitech has demonstrated a real capacity of adaptation to the fast moving actual business world. The company followed a strategy of continuous improvement based on reducing production costs, and focusing on innovation. By buying specific parts of its activities from suppliers in strategic locations, Logitech could benefits of cheap production cost making the brand to become more competitive in the market. Logitech obviously took the right decisions at the right time. When deciding to shift to Taiwan, because they needed more capacity of production, the company decided to adapt its needs to the opportunities offered by the global market. It can be imagined that Logitech’s strategies are carried by a really efficient team, making careful and updated environment analyses, examining all the possible opportunities for the company, at a particular moment, considering the actual position of the brand, the demand for the products, and focusing on the future of the company in a fast-changing environment. By deciding to outsource part of its activities in the US, Switzerland and Ireland for specific activities, Logitech demonstrated again a force of strategy. The global strategy of Logitech is very impressive and we can apply it to most of the Trade Theories studied on the chapter to illustrate the decisions which make Logitech’s strategy so successful.