What is the first brand that comes to mind when you think of a mouse?

Computer equipment has started to occupy a large place in our lives since the 1990s. One of the brands that achieved significant success in this process was Logitech.

By David Foster Published on 14 Temmuz 2022 : 18:23.
What is the first brand that comes to mind when you think of a mouse?
Photograph: Daniel Borel, co-founder of Logitech. Daniel Borel (born 14 February 1950) is a Swiss businessman and co-founder of technology firm Logitech.

 

The Logitech brand was founded in Switzerland in 1981 by Stanford graduates Daniel Borel and Pierluigi Zappacosta and a former Olivetti engineer, Giacomo Marini. The idea of ​​creating such a brand had been in the minds of Daniel Borel, who was pursuing his master's degree in computer science at Stanford, since 1976. It was during this period that he started collaborating with his close friend Zappacosta. The operating systems they developed during their graduate education gave the signal that these two talents would create a great brand in the future.

After 4 years of looking for the necessary financing to establish their company, they established their company in Apples, Switzerland on October 2, 1981, with the prototype they made for Switzerland-based Bobst with the support of Zappacosta's close friend Giacomo Marini. They wanted to name their company Softech, which they actually derived from the word software. But when they learned that this name was registered, they decided to take the name Logitech, which they derived from the French word logiciel.

Combining their knowledge and experience in software, these three entrepreneurs saw that computer equipment would play a major role in the development of future technologies. In this period, when personal computers began to become widespread and their size began to shrink, the company adopted as its mission to lead the developments in computer equipment. Established in the backyard of Zappacosta's farm in Apples, the company managed to take part in the projects and develop the software of Ricoh, one of the leading companies in the field of copiers, printing services and office printers. Following this success, they opened a new office near Ricoh's development office in San Jose, California.

The First Logitech Mice

In the 1980s, parallel to the development of personal computers, mice began to attract great attention. As the graphical interfaces used in computers developed, it became clear that mice were an excellent navigation aid. Mouses that can be moved easily on the surface offered the opportunity to perform operations that can be done in a few steps on the keyboard quickly and easily. This caught the attention of the founding partners, and they developed a mouse at the Federal Institute of Technology in Lausanne, Switzerland. The product was highly appreciated and was launched in 1982 as the Logitech P4 mouse. Which was the first computer equipment the company introduced to the market.

Launched at the Comdex fair in Las Vegas in the fall of 1982, these mice quickly attracted attention in the field of computer equipment. Within a few months, the company was a huge commercial success and started taking bulk orders. Apollo Computer, which has a significant market power in office computers, ordered 500 mice per month at $99 each. In 1984 the company was contracted to manufacture a more advanced mouse for HP. As a result of the agreement with HP, the company increased its monthly mouse production to 25 thousand units and increased its profit margin.

The Rise of the Logitech Brand

In the second half of the 1980s, the company continued its growth process and expanded its production capabilities. Moving the company headquarters from Switzerland to Silicon Valley has enabled it to be close to major computer manufacturers and technology companies such as HP, thereby increasing its commercial success. As a matter of fact, the company did not have sufficient knowledge and experience in retailing, and its possibilities were limited to offer its products directly to the consumer. However, thanks to the agreements he made with big technology companies, he increased his turnover and gained significant experience in sales and marketing.

In this process, the company also tried to establish a partnership with Microsoft. However, the negotiations that lasted for 2 years did not result in positive results and he tried to enter the retail sector with C7 mice. Despite the limited sales and marketing channels, the company managed to sell 800 mice in the first month after the launch of the products. Thus, it has proven that its products have a high sales potential not only in the corporate market, but also in the retail market. Unlike Microsoft, Apple approached Logitech more positively and benefited from Logitech in some product development projects on mice.

Upon these developments, the company established a new production facility in Ireland to increase its strength in the European market. But he wanted to be active not only in the American and European markets, but also in the Far East market. As a matter of fact, the Far East market, together with the "Japanese miracle", was a very young market that took great interest in technological innovations and followed the developments closely. Which meant huge potential, especially in personal computers and peripherals.

The company's activities in the Far East started in Hsinchu, Taiwan in July 1986, and production started in September. In the early 1990s, the company, which produced at its facilities in the USA, Ireland, Hungary and Taiwan, shifted nearly half of its production power to China. It further strengthened its operational presence with different units in the USA, Europe and Asia. In order to provide the necessary financial support, it went public and its shares attracted great attention on the Swiss Stock Exchange.

Logitech in the World Market

The 1990s were the years when the competition in computer equipment was heating up. As the market grew, new players began to enter the sector, and as the use of personal computers increased, customer expectations for peripherals also increased. In order to keep up with these changes, the company made two strategic decisions. The first was to consolidate its manufacturing activities in China to consolidate its market power in mice. The second was to expand its product range and become the pioneer of technological innovations in peripherals. To this end, he launched his digital camera, Fotoman, for the first time in 1992. These products, one of the first digital cameras, attracted great attention by real estate agents and insurance companies who needed fast image sharing.

Logitech Photoman

After the sales success of Fotoman, the company started a major breakthrough in expanding its product range. In 1992 AudioMan was launched, a speaker/microphone that allows embedding sound clips into specific applications. Two years later, he entered the computer game market with WingMan, a kind of joystick. In 1995, the Webcam VideoMan, mounted on a flexible arm, was launched.

In this process, the company's product development processes related to mice continued in a separate branch. One of the most important inventions in computer equipment, the first radio-based wireless mouse Logitech MouseMan Cordless was launched in 1991. These products used only 150 kHz radio waves. The wavelength of the new models, which were launched 2 years later, increased to 27 MHz. Concentrating on its work on wireless mice, the company further developed laser tracking technology in the next models and pioneered many innovations.

In the 2000s, the company added many products to its product range, such as keyboards, trackballs, digital writing solutions, enhanced remote controls, digital communication products such as Web cameras, interactive entertainment products such as game consoles, speakers and headphones for portable music players. As a result of the success it has achieved in both mice and other product groups, it has risen to a very important position in the world market.

Logitech today

The most notable developments in Logitech's success story in the 2000s was its strengthening of market dominance in computer equipment through various acquisitions. As a matter of fact, it started mass production of headphones and audio systems for the consumer market by purchasing Ultimate Ears in 2008. By purchasing Mirial in 2011, it turned to new generation products that improve visual communication in the mobile field. The company's growth process through acquisitions continued with the acquisition of Saitek in 2016 and Astro Gaming in 2017. In this way, the company increased its market share in professional gaming equipment and sound systems.

Today, Logitech has nearly 8,000 employees in more than 30 countries. Its annual revenue is at the level of 2 billion dollars. Peripherals for personal computers, remote controls, security cameras, Webcams, speakers and headphones, smartphones and tablets, and accessories are more prominent in the product range.