On competition chapter 6 the competitive advantage of nations
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THE COMPETITIVE ADVANTAGE OF NATIONS #MOC PRESENTED BY NIDA MBA FLEX 27 CHAPTER 6
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Transcript of On competition chapter 6 the competitive advantage of nations
THE COMPETITIVE
ADVANTAGE OFNATION
S
#MOC PRESENTED BY NIDA MBA FLEX 27
CH
APTER
6
Chapter 6 : The competitive advantage of nations
The Competitive Advantage of
NATIONS1. National Prosperity is created
• Not inherited
• Not grow out of a country’s endowments
2. A nation’s competitiveness depends on the capacity of its industry toinnovation and upgrade.
• Competitive advantage is created by localized process.
• No nation can or will be competitive in every industries
U.K. U.S.A.
Chapter 6 : The competitive advantage of nations
Denmark Germany Italy Japan Korea
PATTERNSof National Competitive
Success1. Study in (10) nations…
Singapore Sweden Switzerland
Chapter 6 : The competitive advantage of nations
i. Nation’s industry as internationally successful…if it possessed competitive advantage relative to the worldwide
competitors.
in particular industries to understand
ii. Examining the history of competition
how competitive advantage
was created.
2. Focus on single nation…
Chapter 6 : The competitive advantage of nationsWhat is National
1. Macroeconomic phenomenon2. Low labor cost3. Natural resource
4. Government policy
COMPETITIVENESS?
Chapter 6 : The competitive advantage of nations
The only meaningful concept of competitiveness at
The national level is…
PRODUCTIVITY
Chapter 6 : The competitive advantage of nationsHOW companies succeed in
INTERNATIONAL MARKETS
2. New ways of doing things
1. New technologies
?
INNOVATION…
Chapter 6 : The competitive advantage of nations
INNOVATORSare often outsiders from a different industry or a different
country
1. whose founder has a nontraditional background or was simply not
appreciated in an older, established company.
2. Senior managers who are new the particular industry and thus more able to
perceive opportunities and more likely to pursue them.
Chapter 6 : The competitive advantage of nations
3. Company diversifies, bringing new resources, skills or perspectives to
another industry.
4. Another nation with different circumstances or different ways of competing
Chapter 6 : The competitive advantage of nations
DEMAND
conditions
Related andsupportin
gINDUSTRIES
FIRM
strategystructurerivalry
FACTOR
conditions
Chapter 6 : The competitive advantage of nations
1. Sharply limit direct cooperation among industry rivals
GOVERNMENT2. Promote goals that lead to sustained
investment3. Deregulate competition4. Enforce strong domestic antitrust
policies
The role of
Chapter 6 : The competitive advantage of nations
THE COMPANYAGEND
A1. Create pressures for
innovation2. Seek out the most capable competitors as motivators3. Establish early-warning systems
4. Improve the national diamond5. Welcome domestic rivalry
6. Globalize to tap selective advantage in other nations7. Use alliances only selectively
8. Locate the home base to support competitive advantage
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