On competition chapter 6 the competitive advantage of nations

1. THE
COMPETITIVE
ADVANTAGE
OF
NATIONS
#MOC PRESENTED BY NIDA MBA FLEX 27
CHAPTER6

2. Chapter 6 : The competitive advantage of nations
The Competitive Advantage of
NATIONS
1. 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 to
innovation and upgrade.
• Competitive advantage is created by localized process.
• No nation can or will be competitive in every industries

3. U.K. U.S.A.
Chapter 6 : The competitive advantage of nations
Denmark Germany Italy Japan Korea
PATTERNS
of National Competitive Success
1. Study in (10) nations…
Singapore Sweden Switzerland

4. 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…

5. Chapter 6 : The competitive advantage of nations
What is National
1. Macroeconomic phenomenon
2. Low labor cost
3. Natural resource
4. Government policy
COMPETITIVENESS?

6. Chapter 6 : The competitive advantage of nations
The only meaningful concept of competitiveness at
The national level is…
PRODUCTIVITY

7. Chapter 6 : The competitive advantage of nations
HOW companies succeed in
INTERNATIONAL MARKETS
2. New ways of doing things
1. New technologies
?
INNOVATION…

8. 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.

9. 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

10. Chapter 6 : The competitive advantage of nations

11. DEMAND
conditions
Related and
supporting
INDUSTRIES
FIRMstrategy
structure
rivalry
FACTOR
conditions

12. Chapter 6 : The competitive advantage of nations
1. Sharply limit direct cooperation among industry rivals
GOVERNMENT
2. Promote goals that lead to sustained investment
3. Deregulate competition
4. Enforce strong domestic antitrust policies
The role of

13. Chapter 6 : The competitive advantage of nations
THE COMPANY
AGENDA
1. Create pressures for innovation
2. Seek out the most capable competitors as motivators
3. Establish early-warning systems
4. Improve the national diamond
5. Welcome domestic rivalry
6. Globalize to tap selective advantage in other nations
7. Use alliances only selectively
8. Locate the home base to support competitive advantage

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