Research

Logitech

Description

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While many companies want to improve the proverbial mousetrap, Logitech International is more concerned about making a better mouse. The company is a leading maker of mice -- it competes primarily with Microsoft in this market -- and other devices for controlling computers, including joysticks, trackballs, and keyboards. The company also offers PC speakers, cameras and headsets. Logitech sells its products directly to manufacturers -- most of the world's largest PC makers are customers -- as well as through distributors and retailers worldwide. Logitech performs its high-volume manufacturing in China.

Logitech's growth strategy includes enhancing functionality -- especially Internet-related features -- for its PC devices and expanding its product line beyond the PC platform. It continues to roll out new products for popular third-party products like Apple's iPod, and gaming systems from Microsoft and Sony.

Another strategy for growth is from key acquisitions. The company expanded its product lines, particularly its computer speaker offerings, when it acquired Labtec in 2001. It gained the Harmony line of remote controls with its 2004 purchase of Intrigue Technologies.

Linksys

Description

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Cisco-Linksys appreciates the grand scale of small-scale connectivity. The Cisco Systems division caters its networking products to the consumer market and to small and medium-sized businesses. Its home networking offerings include wireless routers for connecting multiple PCs to cable or DSL connections. Other products include adapters, modems, switches, and storage devices. The unit sells its products through major retailers including Best Buy, RadioShack, and Office Depot, and online through companies such as Amazon.com. The company (formerly Linksys Group) was founded in 1988 by husband and wife Victor and Janie Tsao. Networking powerhouse Cisco acquired Linksys for $500 million in stock in 2003.

Cisco made its first acquisition designed to expand its Linksys division in 2005, when it acquired Sipura Technology for approximately $68 million. Sipura, which already supplied technology used in some Linksys products, specializes in voice over Internet Protocol (VoIP) equipment. Cisco also purchased Kiss Technology, a maker of DVD players and other consumer electronics designed to work in home networks.

Cisco acquired assets of Ashley Laurent, a developer of DSL gateway software, in 2006