Advantage Of Nations

3H Strategy & Inter demesneal Business

Session 30: The Competitive utility of Nations - the Model

The following notes are largely a summary of porters beers model taken from his book - The Competitive reward of Nations. As such they can be read as a background to the class discussion.

The Approach

The principal economic coating of the nation is to produce a high and rising exemplification of quick for its citizens.

A nations standard of living is determined by its productivity - the value of the output produced by a unit of labour or capital found on:
the quality & features of the product which affects prices
the efficiency of production

Traditional theories on national competitiveness seek to answer the wrong question.

The searing question -
not:
wherefore do some nations bring home the bacon and others fail in international competition?
but:
Why are firms based in a particular nation able to create and sustain competitive advantage against the dry lands best competitors in a particular intentness or segment?

Central to this creation and sustaining of advantage is, argues Porter, innovation.





mental institution - Creating Advantage

Firms create competitive advantage by perceiving or discovering saucily and better shipway to compete in an industry and bring them to market, which is ultimately an act of innovation:

3. improvements in technology
4. better methods / ways of doing things
5. product or process changes

Sources of Innovation:

6. New technologies e.g. Japanese firms & medical imaging
7. New or shifting buyer involve e.g. American fast food & consumer demands for convenience & consistency
8. Emergence of unused industry segment e.g. small Japanese lift trucks for worldwide purposes
9. Shifting input costs or availability e.g. violate costs and global production
10. Changes in government regulation e.g. archean U.S. financial deregulation & American firms experience

Innovation - Sustaining Advantage

11. Companies need to apprehend opportunities for...If you want to get a full essay, order it on our website: Orderessay



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