Advantages And Disadvantages Of The Competitive Advantage Of Nations
The Competitive Advantage of Nations
Competitive advantage is a business concept which describes to us the characteristics necessary that allow an organisations to outperform its competitors. This can be achieved through many avenues such as providing consumers with greater value by either lowering prices or providing a product or services that justifies a higher cost .Prevailing attitude on this subject matter would suggest that factors like labour cost, interest and exchange rates and economies of scale are principal factors in determining national success. However, we learn from Porters article that real Competitive Advantage is developed by innovation applied to the Diamond Model or The Diamond of National Advantage, which in essence are four characteristics that both individually and as a system collectively form the Diamond of Nations. These Characteristics are: Factor conditions, demand conditions, related and supported industries firm strategy, structure and rivalry.
Factor Conditions:
This is a nation’s position on factors of production such as skilled labour force or infrastructure that is necessary in order to compete in a given industry. Porter however believes that it is important to go beyond the traditional factors of production in that the most important factors were not
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The arrival of industry often motivates local supplies to develop and innovate in order to meet that industries production, marketing and distribution needs. Competition among local suppliers leads to lower prices and high quality products which then in turn strengths an industries competitive advantage in world markets. An example of this would be Hollywood in the film industry and its success due to the local availability of specialist input suppliers like special effect firms, casting directors, costume and set designers and stunt
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Porter's 5 Forces
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Porter's Five Forces Of Twitter
903 Words | 4 PagesThis theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.
Competitive Advantage Of State Street Company
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What are Porter's Five Forces in Port Services?
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Summary Of Coca-Cola Market Segmentation
1631 Words | 7 Pages Geographic segmentation calls for dividing the market into different geographical units such as regions, cities, or neighborhood. Coca-Cola has a countrywide network of product distribution but the company segments more in urban and suburban areas as compared to rural areas. 1.2. Demographic segmentation In demographic segmentation, the market is divided into groups on the basis of variables such as age, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class. Demographic variables are the most popular base of Coca-Cola Company for distinguishing their customer groups.
Global Competitive Advantages Of Apple Inc
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Disadvantages Of Multinational Corporations
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Pizza Hut Supply Chain Analysis
2323 Words | 10 PagesPizza Hut was established by Dan and Frank Carney in Wichita, Kansas, USA in the year 1958. Pizza Hut Inc. is one of the prevalent pizza companies worldwide. It was a subsidiary of Pepsi Co Inc. from the year 1977 – 1997. It is a wholly owned subsidiary of YUM! Brands since 1997 to present.
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