Logitech Use the Theory of Term Paper

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As such, amongst other things, globalization, in the context of Logitech's international activity, refers to outsourcing and off-shoring both services as well as products. Furthermore, it also implies the global distribution of the necessary resources throughout several countries that detain a comparative advantage.

As such, Taiwan has several arguments in favour of hosting Logitech's manufacturing activities. The crucial argument was that of reduced costs of human labour. Even though only a small percentage of the final retail price of a computer mouse is workforce related (7%), cheaper labour was a convincing incentive. But aside from cheaper workforce, there were also other arguments in favour of manufacturing in Taiwan. Logitech was able to directly purchase the base products they needed for manufacturing their products from Taiwan. This offered the advantage of reduced supply costs and a well developed logistics channel. In addition, not only that the workforce was cheap, it was also qualified. The Taiwanese people are renowned for their skills and adaptability to producers' requirements. Being a country primarily focused on producing cheap and high quality technologies for foreign companies, Taiwan attracts numerous investors. Also, the country has a high development potential in most industry, but especially in the computer industry.

Similar to the case of Taiwan, China was chosen to produce Logitech mice, keyboards and other computer hardware devices as the country offers cheap and skilled workforce, easy access to base products and a growing computer industry.
California and Switzerland were chosen for product R&D due to the advantages they possess. As such, employing 200 workers, Switzerland hosts the first headquarters of Logitech's and presents the advantage of best knowledge of the company and its products. Switzerland has the reputation of employing skilled workers who promote seriousness and timely completion of their tasks. California was chosen as it represents the core of American high technology. It is the place that hosts the brightest minds in it and the most advanced technologies.

Ireland was selected to host product design activities as the country is renowned for their attention to details and their commitment to product innovation and improvement.

In all, Logitech manufactures their products in China and Taiwan, researches and develops in California and Switzerland, designs in Ireland and coordinates from California because the international market offers them this best opportunity through globalization. And globalization, in its basic understanding, represents the liberalization of international markets and the ability to best combine several countries' particular features in order to come up with the lowest prices and the best products.


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