Logitech 2007 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2007 Logitech annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 166

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

increased production capacity and greater flexibility in managing product demand. Further, by outsourcing the
manufacturing of certain products, we seek to reduce volatility in production volumes as well as time to market.
Information Technology
Logitech has made investments to upgrade our business applications and information technology systems.
Our investments in information technology are focused on positioning Logitech for future growth by improving
our operational and financial processes to realize cost structure improvements and to effectively manage the
increased complexity of our business through standardization and integration of our IT environments.
Geographic Expansion
We believe that the market penetration for Logitech products is particularly low in developing markets such
as Latin America, Eastern Europe, India and China. We are committing resources to capitalize on the growth
opportunities in these regions, including securing new channel partners, strengthening relationships with existing
partners, expanding our sales force and investing in product and marketing initiatives.
Product Strategy
To capitalize on the many opportunities in the growing digital marketplace, Logitech’s product strategy
focuses on personal peripherals in three digital environments:
• The Office Environment – Desktop and Notebook Computers
• The Digital Home Environment – Digital Music Systems, Home-Entertainment Systems, Game
Consoles
• The Mobile Environment – Notebook Computers, Digital Music Players, Mobile Phones
The Office Environment
Logitech has successfully broadened our desktop presence by introducing new, more innovative, high-
performance PC navigation devices that have gained market acceptance. In addition, we have expanded beyond
our traditional role as a provider of pointing devices for the desktop or notebook PC into a leading brand for
video imaging products, keyboards, PC audio products and control devices for emerging 3D applications and
platforms such as Google Earth and Adobe Creative Suite. We believe there is an opportunity to continue to
innovate and differentiate across a broad set of essential personal peripherals that people touch and use every
day.
The Digital Home Environment
We see the dramatic increase of digital content available for the home as a significant source of new
opportunities for Logitech. We believe that the new digital home, with a broad and evolving selection of digital
entertainment and information content available from multiple sources, and the innovation in affordably priced
digital-technology equipment, will over time allow us to play a significant role in the consumer experience.
Our product portfolio includes a line of advanced remote controls for home entertainment and a variety of
speaker and headphone products, as well as the Squeezebox™ and the SqueezeNetwork, which allow people to
enjoy digital music in any room of the house. These are parts of our strategy to pursue new opportunities in the
digital home environment, positioning Logitech at the convergence of consumer electronics and personal
computing in the digital living room.
Also for the digital home, Logitech offers a broad spectrum of products for gaming consoles and PCs. With
our expertise in force and vibration feedback, cordless connectivity, voice input and video input, Logitech is
23
CG