Logitech Case Study: Examining Headquarters Relocation Strategies

This case study examines Logitech's strategic decision to relocate its headquarters from Switzerland to Fremont, California. The analysis focuses on the rationale behind this move, emphasizing the importance of proximity to key customers like Apple and IBM. The relocation is viewed as a strategic move to enhance the company's understanding of customer preferences, gain a competitive advantage, and improve its product research and development capabilities. The study also suggests that marketing considerations played a role, as the United States offered a significant market for Logitech's products. Overall, the case study highlights the importance of aligning a company's location with its target market and the strategic implications of such decisions for international presence and long-term profitability. The study references Finne and Sivonen (2008) and Shenkar and Luo (2008) to support its arguments, demonstrating a strong understanding of business strategy and competitive advantage.

Running head: LOGITECH CASE STUDY
Logitech Case Study
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Question
(d) Why do you think the company decided to shift its corporate headquarters from
Switzerland to Fremont, California?

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Logitech Case Study
Logitech’s decision to shift its corporate headquarters from Switzerland to Fremont,
California was a strategic business decision. In business, corporate headquarters is an
important location that drives innovation, marketing and distribution of a firm’s product. In
this respect, its location should be strategically located in an environment which entails a
company's key consumers. According to Finne and Sivonen (2008), locating a firm’s
headquarters near or in its primary market enhances its competitive advantage. Companies
exist to serve the demand of their customers. Consequently, firms cannot attain profitability if
they do not understand its customers’ preference.
As indicated in the case study, the major technology firms that Logitech targeted with
its products were located in the United States. These firms included the likes of Apple and
IBM. However, attracting these high technology enterprises required Logitech to have a good
comprehension of what they like and how they operate. As a result, the company shifted its
headquarters to California to increase its interaction with its key customers. In a competitive
sector like the one Logitech operates in, gaining insights on customer’s preferences is a key
competitive advantage. Customers prefer to purchase products from companies that they feel
produce products which address their requirements. According to Shenkar and Luo (2008),
corporate headquarters functions as the heart of a firm’s product research and development
activities. However, product research and development can only be attained through
interaction with the firm’s key customers.
Moreover, the move could have been motivated by marketing purposes. With an
already established computer peripheral market, the United States provided an ideal
environment for Logitech to sell its brand locally and globally. Although several perspectives

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can be applied to explain Logitech’s decision to shift its headquarters, the move intended to
increase the company’s international presence and profitability in the long term.

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References
Finne, S., & Sivonen, H. (2008). The Retail Value Chain: How to Gain Competitive
Advantage through Efficient Consumer Response (ECR) Strategies. Philadelphia:
Kogan Page Publishers.
Shenkar, O., & Luo, Y. (2008). International Business. Los Angeles: SAGE.