1. GROUP 9 SECTION A Alexius Freund Coman Fullard Raman Karol Dhirapat Kulophas Adriano Prates Markus Wyss

2. INTRODUCTION – MARKUS INDUSTRY ANALYSIS – DHIRAPAT COMPANY ANALYSIS – RAMAN CONCLUSION – MARKUS

3. COMPANIES ON RADAR SCREEN STRATEGIC INTELLIGENCE SCREEN CONFIDENTIAL

4. POSITIONING LADDER STRATEGY INTELLIGENCE SCREEN CONFIDENTIAL ??

5. MILEMICE 1981 Founded in Switzerland 1988 IPO SMI; 1997 IPO NASDAQ 1993 Introduction of Joysticks 1998 Acquisition of Conectix (Webcams) 2000 Introduction of advanced gaming devices for PS2 2001 Acquisition of Labtec (Speakers) 2002 Acquisition of 3Dconnection (3D-Controllers)

6. LORDS OF THE MICE DANIEL BOREL, 51 FOUNDER, CHAIRMAN " THE ENTERPRENEUR" GUERRINO DE LUCA, 48 CEO " THE MARKETEER " "L ogitech aims to be king of the last inch between human fingers and electronic gizmos "

7. LOGITECH TODAY: MORE THAN LORDS OF MICE Sales of almost US$ 1.3 bn in FY 2004 Worldwide Market leader in Mice, Keyboards & WebCams. 2nd in PC Audio & Gaming Brand awareness of over 70% among PC users Products sold everywhere in the world (Switzerland is only 2% of ww sales!) More than half a billion Mice sold so far

8. R&D IN EUROPE/US - PRODUCTION IN CHINA Fremont, USA: Software development (access to top programmers) Eastern China: Major manufacturing operations (access to cheap labor) Switzerland/Ireland: R&D (access to top notch engineers)

9. MORE AND MORE DIVERSIFIED

10. Threats from Substitutes High on mice, speakers Low on web cams Threats from New Entrants Highly capital intensive Absolute cost advantage Brand awareness Supplier Power Outsource to Asia Higher switching costs PC Peripheral Industry = VERY COMPETITIVE Based on Competitive Strategy by Michael Porter. Free Press (1980). Buyer Power Low switching costs, No Lock-in Access to information on Internet Few dominating PC firms Consolidation of PC & Retails Rivalry Within Industry High concentration Low differentiation Advertising & Product Development important

11. Forte & Frailty CONFIDENTIAL Brand equity After Market Strategy Below “spouse” threshold Design Gurus China Outsourcing Complementary demand Supplier and customer concentration

12. Still room for growth – but also for takeovers! STRATEGY INTELLIGENCE SCREEN CONFIDENTIAL Market extension Product extension Inorganic Growth Innovation Cycles Product cannibalization Take over threats

13. MICE = ENDANGERED SPECIES? CONFIDENTIAL

14. Facing major changes in computer industry CONFIDENTIAL Integration of networked devices in the environment (ubiquitous computing) Computers and Peripherals becoming commodities

15. Horizontal and Vertical Business Strategy Product strategy CONFIDENTIAL Focus on peripherals The Office environment The Living room The Mobile environment Distribution strategy After-market Pricing strategy Forget the spouse Growth strategy Merge and acquire

16. TO CONLUDE = SMART COMPETITOR! TO CONLUDE = SMART COMPETITOR! CONFIDENTIAL GOOD VALUE (DELIVERED AS PROMISED) SUPERIOR COST POSITION (OPERATIONAL EXCELLENCE) HIGH SPEED (TIME TO MARKET/CUSTOMER)

17. KEEP THE MOMENTUM KEEP THE MOMENTUM CONFIDENTIAL Innovation, Innovation, Innovation The future is cordless Substitution of own products Product diversification

18. Customer orientation, low cost and high speed … STRATEGY INTELLIGENCE SCREEN CONFIDENTIAL