Read the case below and answer all the questions that follow. Logitech Best known as the world’s largest producer of computer mouse, Logitech was founded in Switzerland by two Italians and one Swiss in 1981. Logitech has made a name for itself as a technological innovator in the highly competitive business of computer peripherals. It was the first company to introduce a mouse that used infrared tracking and wireless mouse and keyboards. Logitech is differentiated from its competitors by its continuing innovation, high brand recognition and strong retail presence. It has also configured its global value chain to lower production costs while maintaining the value of those assets that lead to differentiation. Logitech’s basic R&D work is still done in Switzerland where it has around 200 employees. The corporate headquarters is now located in Fremont, California which is also its headquarters for global marketing, finance and logistic operations. Fremont is located close to many of America’s high-technology enterprises where it has 450 employees. R&D work is also carried out in Fremont. The ergonomic design is done in Ireland by an outside design firm and most of the manufacturing of Logitech’s products are carried out in Asia. Logitech’s expansion into Asia began in 1980s when it opened a factory in Taiwan. At that time Logitech was trying to win a contract with Apple Computers. To attract Apple, Logitech not only needed the capacity to produce at high volume and low cost, it also had to offer a better designed product. The solution was to manufacture in Taiwan. Cost was also a factor in the decision. Taiwan offered a well-developed supply base for parts, qualified people and a rapidly expanding local computer industry. As an inducement to fledgling innovators, Taiwan provided space in its science-based industrial Park in Hsinchu. Soon after, Logitech won the Apple contract. 1 (Source: Global Business Today, C.W. L. Hill, (2008) McGraw-Hill. pg 188) 2 (a) Explain using suitable examples Michael Porter’s National Competitive Advantage Theory. Provide the example and elaboration.


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