America specializes in R&D.

The headquarters were moved because of the company’s global marketing, finance, and
logistics operations.
That is what Americans do best.
It helps Logitech to stay close to its customers. It can respond to the demands
of the customers more promptly. Fremont is also the place where a lot of technol
ogical innovations are happening. Logitech being in the high-tech industry, cont
inuous innovation is a key success factor for its business. Fremont is also an i
mportant in terms of managerial talent. All these reasons make it convenient for
Logitech to move to Fremont.

The company decided to shift its corporate headquarters from Switzerland to Fremont
to be close to American high-technology enterprises also based in Fremont. It helps
Logitech to stay close to its customers. It can respond to the demands of the
customers more promptly. Fremont is also the place where a lot of technological
innovations are happening. Logitech being in the high-tech industry, continuous
innovation is a key success factor for its business. This helps Logitech‘s order
winning criteria of continuous innovation thus according to the case it introduced
91 new products in 2003. Fremont is also an important in terms of managerial
talent. With this strategy, marketing finance and logistics operations can be
easily done as related and supporting industries are within the area. All these
reasons make it convenient for Logitech to move to Fremont. California is regarded
as the hub of the global IT industry. Fremont is a place which is in Silicon
Valley- home to a vibrant, growing electronics industry. Since the high technology
industries are located in the area, a natural concentration of high skilled labor
and technical information and related/supportive products are freely available. By
shifting the head quarters from Switzerland to Fremont the company gained
competitive advantage over its competitors. According to the theory of
Agglomeration Tendencies by Alfred Marshall in 1890, firms with In an industry tend
to cluster together due to accumulation of knowledge and other synergetic Benefits
such as infrastructure, consultancy, security, repair & maintenance, accessory
Manufacturers, R & D, advertising, banking & insurance, etc.. The firms located in
Fremont are Highly competitive and innovative. Therefore by locating the Logitech
in Fremont it was easily Got the first hand information and products without delay.
Similar characteristics are explained under the related and supporting industries
in Porter‘s Diamond too. Industry attributes are used to construct measures of the
relevance of each of Marshall‘s three theories of industry agglomeration to each
industry pair: (1) agglomeration saves transport costs by proximity to input
suppliers or final consumers, (2) agglomeration allows for labor market pooling,
and (3) agglomeration facilitates intellectual spillovers. (Ellison, G ,Glaeser,
E.L.,& Kerr,W. 2007) These conditions were existed in Fremont. It was easier to
handle global logistic operations from Fremont than in Switzerland. The
availability of a commercial harbor in Fremont is additional advantage to the
Logitech. Since the related and similar industries are located in Fremont, the
business environment is more competitive in Fremont compared to Switzerland.