Logitech Case Study

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Designing products in Ireland

Ireland has a state-of-the- art technology in Ergonomics that are applicable to the design of products.

Coordinating marketing and operation in California

It is will be easier to get effective information and many opportunities in California.

Thus it is the best place to do marketing business. And also, it is easy to find a state- of –the art technologies there, which will motivate it’ business.

6. To what extent can Porter’s diamond help to explain the choice of Taiwan as a major manufacturing site for Logitech?

We can fully understand why Logitech succeed in making a manufacturing hub for electronics goods in Taiwan through Porter’s diamond.

・Factor endowment

There are enough skilled workers and the infrastructure necessary to compete in a given industry. Logitech was endowed with a science-based Industrial Park in Hsinchu.

・Demand conditions

There is demand throughout the world for electronic products produced in Taiwan.

Establishing factories in Taiwan facilitated it’ internal competition, which I think led a good result there.

・Related and supporting industries

Taiwan has already a well developed supply chain in electronic industry.

And they can assemble some parts at the lowest cost.

・Firm strategy, structure and rivalry

There are many competitive companies in Taiwan which help to facilitate it’ industry.

Additionally, two important variables: chance and government can influence the national diamond in important way.

The Taiwanese government attracted establishing facilities. They offered the land at a low price.

This was a good opportunity to expand it’ business thanks to a chance and government support.

7. Why do you think China is now a favoured location for so much high-technology manufacturing activity?

There are many factors that make China more attractive location to do high-technology manufacturing activity.

It has many illiterate or uneducated people in China.

Firms can employ them at a low expense,

It has good infrastructure and supply chain.

The competitors in domestic are huge. They stimulate each other to improve themselves.

There are many skilled persons in China.

It takes lower time to produce and ship products.

These factors make China a favored location for high-technology manufacturing.

A similar case: バングラデシュ テキスタイル

How will China ‘increasing involvement in global trade help that country?

To facilitate Chinese government’ export-oriented strategy, China could sustain a surplus in the balance of trade.

The more increasing the number of factories, the more improving an infrastructure.

How will it help the world’s developed economies?

What potential problems are associated with moving work to China?

China's increase in global trade will ensure that investment flows into China for manufacturing. Its balance of payment position will become very strong. It can use the trade a lever for political mileage. As more investment happens it will help China to reap the advantages of economics of scale. It can provide better living conditions for its citizen. It will also generate funds for planned investment.

The world's developed economics will be able to take advantage of the low cost manufacturing available in China. The global companies can improve the efficiency of their supply chain be manufacturing in China.

Apple supplier list

http://images.apple.com/supplier-responsibility/pdf/Suppliers.pdf