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Competitive Advantage of Nations

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Wesley Shu
Wesley Shu

The document discusses Michael Porter's theory of national competitive advantage known as the "Diamond of National Advantage". The theory proposes that four attributes influence competitive advantage: factor conditions, demand conditions, related and supporting industries, and firm strategy/rivalry. It argues that a nation's competitiveness depends on how these attributes interact and reinforce each other in a system. Specialized factors, sophisticated buyers, related industries, and domestic rivalry are especially important for sustaining competitive advantage over time.

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Competitive Advantage of Nations Author: Michael Porter Presenter: Wesley Shu Prepared for EMBA, Feng-Chia University
Eroded Early Mover Advantages ,[object Object],[object Object],[object Object],[object Object]
Global Competitiveness Report ,[object Object],[object Object]
Su stainability ,[object Object]
[object Object],[object Object],[object Object]
The Diamond of National Advantage Firm Strategy, Structure, and Rivalry Demand Conditions Related and Supporting Industries Factor Conditions
F a ctor Condition ,[object Object],[object Object]
Demand Condition ,[object Object]
Related & Supporting Industries ,[object Object]
Firm Strategy, Structure, & Rivalry ,[object Object]
Factor Conditions ,[object Object]
Factor Conditions ,[object Object]
Factor Conditions ,[object Object]
Factor Conditions ,[object Object]
Factor Conditions ,[object Object],[object Object]
Factor Conditions - Disadvantage ,[object Object]
Factor Conditions - Disadvantage ,[object Object],[object Object],[object Object]
Demand Conditions ,[object Object],[object Object]
Demand Conditions ,[object Object]
Characters of Demand Conditions ,[object Object],[object Object],[object Object]
Characters of Demand Conditions ,[object Object]
Related & Supporting Industries ,[object Object]
Firm Strategy, Structure, & Rivalry Corporate Structure & Nature of Domestic Rivalry National Circumstances & Context Firm Strategy
Firm Strategy, Structure, & Rivalry – Germany Strictly hierarchical organization & management practices with technical background top managers National Circumstances & Context Technical Oriented Industries
Firm Strategy, Structure, & Rivalry – Italy Family owned, medium size companies with sophisticated taste National Circumstances & Context Consumer goods & services
Firm Strategy, Structure, & Rivalry ,[object Object]
The Diamond as a System ,[object Object],[object Object]
The Diamond as a System ,[object Object]
The Role of Government ,[object Object]
The Role of Government ,[object Object]
The Role of Government ,[object Object],[object Object],[object Object]
The Role of Government ,[object Object],[object Object],[object Object],[object Object]
Focus on Specialized Factor Creation ,[object Object],[object Object]
Avoid intervening in factor & currency markets ,[object Object],[object Object]
Avoid intervening in factor & currency markets ,[object Object],[object Object]
Sharply limit direct cooperation among industry rivals ,[object Object],[object Object],[object Object]
Company Agenda ,[object Object],[object Object],[object Object],[object Object]
Company Agenda ,[object Object],[object Object],[object Object],[object Object]
Improve the National Diamond ,[object Object],[object Object]

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Competitive Advantage of Nations

  • 1. Competitive Advantage of Nations Author: Michael Porter Presenter: Wesley Shu Prepared for EMBA, Feng-Chia University
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  • 6. The Diamond of National Advantage Firm Strategy, Structure, and Rivalry Demand Conditions Related and Supporting Industries Factor Conditions
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  • 23. Firm Strategy, Structure, & Rivalry Corporate Structure & Nature of Domestic Rivalry National Circumstances & Context Firm Strategy
  • 24. Firm Strategy, Structure, & Rivalry – Germany Strictly hierarchical organization & management practices with technical background top managers National Circumstances & Context Technical Oriented Industries
  • 25. Firm Strategy, Structure, & Rivalry – Italy Family owned, medium size companies with sophisticated taste National Circumstances & Context Consumer goods & services
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