Question

Logitech is a computer peripherals company that was founded in Switzerland in 1981. From the outset, the founders realized they would need to expand internationally if they wanted to compete in the market. Soon it had offices and/or factories in Switzerland, Taiwan, China, the United States, and Ireland. Its corporate headquarters is in Silicon Valley, but it maintains a factory in China. Eight years after it was founded, Logitech had captured 30 percent of the market share in the computer peripherals industry. Refer to Scenario 8.1. Logitech has many of its products built in China using third parties. However, it has also built its own factories to protect some of its manufacturing trade secrets. For instance, its UE Boom portable was built in its own factories in China. Logitech uses a combination of ______________ and ______________ when manufacturing products.

Answer 1

Answer:

For instance, its UE Boom portable was built in its own factories in China. Logitech uses a combination of CONTRACT MANUFACTURING and DIRECT OWNERSHIP when manufacturing products.

Explanation:

Contract manufacturing basically refers to outsourcing production to another company, it is basically what Apple does with Foxconn in China. Foxconn produces iPhones for Apple, but it cannot sell them as their own products.  

Direct ownership refers to companies that actually own the factories that produce their products, e.g. Honda cars are made in the US in Honda factories.