Logitech (A) Passing the Baton to an External CEO

Logitech International was a leading maker of mice and other devices for controlling computers, including PC cameras. In 1998, the new CEO learned that the Quickcam business unit of Connectix was for sale, an offer the founders had rejected because the technology was not as good as Logitech's internally developed Web camera, and purchasing an inferior product was not seen as an advantage. The CEO thought that reassessing this acquisition was a good way to examine Logitech's business and organizational model, and the strategic opportunities facing the company. Logitech was an OEM-focused and engineering-dominated company, with power centered in the business units, which developed the technology and developed the retail strategy for the products, and it faced serious competition in the branded retail market. The new CEO wondered whether the brand recognition associated with the QuickCam could be used to Logitech's advantage. The case details for discussion the strategic significance that the rights to an established brand would have on the market position and organizational structure of Logitech.