The Competitive Advantage of Nations - the Mode

Session 30: The Competitive value of Nations - the Model The following notes ar largely a summary of Porters pretense taken from his book - The Competitive Advantage of Nations. As such they can be read as a background to the class discussion. The Approach The principal economic goal of the solid ground is to produce a high and rising standard of financial support for its citizens. A nations standard of living is compulsive by its productivity - the value of the output produced by a unit of labour or capital based on: the quality & features of the product which affects prices the efficiency of production Traditional theories on matter competitiveness seek to answer the wrong head teacher. The critical question - not: Why do some nations succeed and others go in international competition? but: Why argon firms based in a particular nation suitable to create and sustain competitive advantage against the worlds best competitors in a particular industry or segment? Central to this creation and sustaining of advantage is, argues Porter, innovation.

Innovation - Creating Advantage Firms create competitive advantage by perceiving or discovering overbold and better ship canal to compete in an industry and manner of speaking them to market, which is ultimately an act of innovation: improvements in technology better methods / ways of doing things product or process changes Sources of Innovation: New technologies e.g. Japanese firms & medical imaging New or shifting buyer necessitate e.g. American fast food & consumer demands for convenience & consistency Emergence of saucy industry segment e.g. small Japanese lift trucks for habitual purposes Shifting input costs or availability e.g. impartation costs and global production Changes in government regulation e.g. primordial U.S. financial deregulation & American firms experience Innovation - Sustaining Advantage Companies need to grok opportunities for innovation and exploit them quickly. ... If you want to get a affluent essay, order it on our website: Orderessay

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