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LOGITECH INTERNATIONAL SA - Shareholder.com

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Table of Contents<br />

increased production capacity and greater flexibility in managing product demand. Further, by outsourcing the manufacturing of certain<br />

products, we seek to reduce volatility in production volumes as well as time to market.<br />

Information Technology<br />

Logitech has made investments to upgrade our business applications and information technology systems. Our investments in information<br />

technology are focused on positioning Logitech for future growth by improving our operational and financial processes to realize cost structure<br />

improvements and to effectively manage the increased <strong>com</strong>plexity of our business through standardization and integration of our IT<br />

environments.<br />

Geographic Expansion<br />

We believe that the market penetration for Logitech products is particularly low in developing markets such as Latin America, Eastern<br />

Europe, India and China. We are <strong>com</strong>mitting resources to capitalize on the growth opportunities in these regions, including securing new<br />

channel partners, strengthening relationships with existing partners, expanding our sales force and investing in product and marketing<br />

initiatives.<br />

Product Strategy<br />

To capitalize on the many opportunities in the growing digital marketplace, Logitech’s product strategy focuses on personal peripherals in<br />

three digital environments:<br />

• The Office Environment – Desktop and Notebook Computers<br />

• The Digital Home Environment – Digital Music Systems, Home-Entertainment Systems, Game Consoles<br />

• The Mobile Environment – Notebook Computers, Digital Music Players, Mobile Phones<br />

The Office Environment<br />

Logitech has successfully broadened our desktop presence by introducing new, more innovative, high-performance PC navigation devices<br />

that have gained market acceptance. In addition, we have expanded beyond our traditional role as a provider of pointing devices for the desktop<br />

or notebook PC into a leading brand for video imaging products, keyboards, PC audio products and control devices for emerging 3D<br />

applications and platforms such as Google Earth and Adobe Creative Suite. We believe there is an opportunity to continue to innovate and<br />

differentiate across a broad set of essential personal peripherals that people touch and use every day.<br />

The Digital Home Environment<br />

We see the dramatic increase of digital content available for the home as a significant source of new opportunities for Logitech. We<br />

believe that the new digital home, with a broad and evolving selection of digital entertainment and information content available from multiple<br />

sources, and the innovation in affordably priced digital-technology equipment, will over time allow us to play a significant role in the consumer<br />

experience.<br />

Our product portfolio includes a line of advanced remote controls for home entertainment and a variety of speaker and headphone<br />

products, as well as the Squeezebox and the SqueezeNetwork, which allow people to enjoy digital music in any room of the house. These are<br />

parts of our strategy to pursue new opportunities in the digital home environment, positioning Logitech at the convergence of consumer<br />

electronics and personal <strong>com</strong>puting in the digital living room.<br />

Also for the digital home, Logitech offers a broad spectrum of products for gaming consoles and PCs. With our expertise in force and<br />

vibration feedback, cordless connectivity, voice input and video input, Logitech is<br />

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