"Failure Should Not Be Punished" Logitech Innovates from 'Tree Mouse' to 'Click' Mouse in the Market [Hidden Industry Story]

'Mouse' Company 'Logitech' Leading PC Peripheral Manufacturer
"Do Not Punish Failure" CEO Management Philosophy
Microphones, Speakers, Webcams... Continuous Research and Experimentation

Hard-type mouse pad G440. It provides a low-friction surface for fast mouse control. Photo by Logitech Korea

[Asia Economy Reporter Heo Midam] "Logitech's vision is to build an interface that connects machines and humans. The mouse is a part of that."

There is a device that plays the role of a user's hand during computer use. Named 'mouse' because its shape closely resembles that of a rat. Alongside the keyboard, the mouse has been a key computer input device since 1968.

Recently, various input devices such as touchscreens and 'trackballs' (peripherals that operate by rolling a ball placed on the device) have been released to replace the mouse, but many people still prefer and are familiar with the mouse. Why is that?

The mouse offers faster and more intuitive operation speed and precision compared to other input devices. Anyone using a computer can easily operate the mouse through its scroll wheel and left and right buttons.

Thanks to these advantages, the mouse has become an indispensable essential item for computer users. From internet surfing to various document tasks, and especially now that remote work has become routine, the mouse has become more important than ever.

In particular, there is one company that cannot be left out of the 'mouse market.' Starting from a small village in Switzerland, Logitech has established itself as the global leader in computer peripherals. What is the secret behind Logitech maintaining its position as the world's number one in the mouse industry?

Logitech mouse. Photo by Logitech website capture.

◆ "When the PC market grows, peripherals grow too" Founder’s 'Insight' Shined

Logitech started in 1981 in a small Swiss village called Apples. At that time, computer-related companies were focusing on the software market, so Logitech initially developed programs related to document creation and publishing.

However, Logitech's founder Daniel Borel judged that as PC adoption expanded, the market for peripherals such as mice and keyboards would also grow, and shifted the business direction accordingly.

At that time, the price of a mouse was over $200 (about 220,000 KRW), and it required plugging in a thick cord to charge, and it often broke down quickly. Because of this, Logitech devoted its corporate capabilities to creating an affordable mouse that was convenient to use.

In fact, Borel was a programmer skilled in software development rather than hardware. In 1976, he developed an early word processing program at Stanford University in the U.S. During that process, he met Pierre-Louis Zappacosta, co-founder of Logitech.

The two noticed that as personal computers became known to the public, demand for 'third-party' devices like the mouse, which had previously been confined to research labs, would increase. 'Third-party' (3rd party developer) refers to peripherals such as keyboards and mice that must be used with personal computers.

After four years of research, they finally created a prototype. Then Giacomo Marini, now famous for cleaning robots, joined them, and the three founded Logitech in 1981.

Although it was a hardware-based company focusing on mice, the essence of the business was establishing a software-centered company related to programming.

Logitech also received help from the Swiss Federal Institute of Technology, located about an hour away by car. Collaborating with researchers there, the first hardware device they released to the market was the 'P4' mouse. Summarizing the situation, the country's investment in their genius technology and efforts made today's Logitech possible. The 'P4' caused a significant stir in the market.

Unlike the first clunky mouse made of square wood, Logitech's mouse was easy for an adult hand to grip. Later, Logitech CEO Gerard Quindlen praised the 'P4,' saying, "Logitech mouse products have evolved alongside PCs since the production of the Logitech 'P4' in 1982."

Through this process, Logitech introduced the world's first 'laser mouse,' 'ultra-fast scroll wheel,' and 'ultra-small nano receiver' (headphone and speaker output device) to the market one after another. All these devices originated from the 'P4' created by Borel. The same applies to keyboards.

Logitech keyboard. Photo by Logitech website capture.

◆ Innovation Attempts Beyond Mice: Speakers, Microphones, and More

Following Logitech's success, many companies entered the PC peripheral market as third parties. However, Logitech always stayed one step ahead. In addition to mice, they developed various peripherals such as keyboards and headsets, capturing consumers' hearts. In line with their corporate vision of 'connecting machines and people,' they were also proactive in developing new product lines.

Starting with the industry's first portable scanner (a peripheral that inputs photos and the like into a computer) in 1988, they introduced computer speakers and microphones in 1992, showing enthusiasm for new product development. Later, in 1995, they launched the webcam 'Videoman,' enabling video conversations via computer, releasing over 100 new peripheral products annually.

Innovation in their flagship mouse category also continued. In 1991, they introduced the industry's first wireless mouse, and in the same year, a left-handed mouse and a kids' mouse for small hands.

In 2004, Logitech developed the world's first mouse adopting laser tracking technology. This product overcame the previous limitation of needing a mouse pad, allowing smooth use on desks or floors.

Photo by Logitech

◆ "The Secret to Differentiation is Challenge" Logitech Unafraid of Failure

Logitech's continuous new product development is related to their corporate culture. They constantly tried and were not afraid of failure.

Daniel Borel said at an event commemorating the 40th anniversary of the mouse invention, "Failure should not be punished," explaining, "In the IT business, rather than trying twice and making the right choice both times, taking risks and trying ten times with only six successes increases the chances of successful differentiation."

As they were not afraid to try, many products failed. A representative example is the digital camera 'Photoman' developed in 1992. 'Photoman' was the first camera that took pictures and connected to a computer to view them. However, it was rejected in the market due to inconvenience at the time.

Nevertheless, unafraid of failure, Logitech survived by flexibly adapting to changes despite the shrinking PC market in the late 2000s due to the expansion of the mobile market. They responded quickly to market changes thanks to their unique technology and brand power.

As of 2018, Logitech holds a market share in the gaming mouse market in the 30% range and in the general mouse market in the 40% range, maintaining its position as the industry leader.