Porter's Framework Of Competitive Advantage

5.3 Country position and attractiveness According to Porter (1990), the level of competitiveness on a country depends on the capacity of the industry and the skills to upgrade and innovate. The competitive advantage is produced and sustained on the differences in values, economics structures, culture, institutions, history, and other factors that contribute to competitive success. Therefore, companies as well as nations have to fight for a position on the market as centers of production or industrialization of products.

Diamond framework is proved to be an important and effective model that is developed by Porter. It is used as a measuring tool for competitiveness of firms, sectors and even countries. Demand factors is the key object that will affect the competitiveness more than other factors do, then follow by the government. In order to sustain the competitive advantage, nation is supposed to upgrade the model for a better result. In fact, Dunning and Rugman did an additional extension to Porter’s Diamond framework.

Based on four attributes, first one is Factor endowments that focus on basic factors natural resources, climate, location, demographics second one is advanced factors such as communication infrastructure, sophisticated and skilled labour, research facilities, and technological know-how. Third one will be advanced factors are a product of investment by individuals, companies, and governments. Porter argues that advanced factors are the most significant for competitive advantage. Lastly demand conditions that look at customer need or the demand on which is being produced, companies will have to produce innovative, high quality products early, which lead to competitive advantage. Relating and supporting industries, if suppliers or related industries exist in the home countries that are themselves internationally competitive, this can result in competitive advantage in the new industry, firm strategy, structure, and rivalry.

Organisations are starting to realise that they have become more reliant on suppliers in terms of innovative power and security of supply and on-going cost savings (voorbehouden, 2013). Accountant should initiate a study on supplier management to gain a better understanding of the typical challenges involved and to determine how supplier capabilities drive competitive advantage. As a company expand their business to international level, having effective global human resources becomes necessary. Those who favour the contingency perspective believe that HR practices should be designed in response to such organizational and environmental factors as the economic status of the industry, the maturity of the market and technological considerations The organizations which are performing well in terms of people management combine strong discipline in human capital management with attention to the importance of social capital the building of relationships and networks within the organization, organizational capital the structure and culture of the firm (Philip Stiles, 2006). Effective global human resources can establish the vital success and can be sources for persistent to the company.

There is a need for continuous development of employees’ skills and technologies. Demand conditions: Due to a rise in customer demands, the company’s work pressure increases, eventually enabling a firm to become more competitive in the market. Related and supporting industries: There should be high quality suppliers and universities that are competitive in the global

In a broad scope, innovation can create value though many ways: offering new products or services, exploiting new market segments, redesigning processes to improve efficiency, among others (Sawhney et al., 2006). The organizations need to systematically innovate in order to thrive, but there are many challenges to achieve this objective. Actually, several sources of complexity are associated with the challenge of innovation, such as technological, organizational and inter-organizational (Kim & Wilemon, 2003). The constitution of an IMS aims at dealing with these difficulties.

Competitive advantage is a term used in the business warzone between commonly large companies that compete to obtain the highest costumer population for their business fields. Competitive advantage is literally an advantage that a company or an organization possesses which enables it to shine brighter than the other competitors in the competition; it is what makes your business unique in comparison to the others. The question now is how? How can you acquire a competitive advantage in the global market? To answer this question, you must first be familiar with three major determinants of acquiring competitive advantage: what to produce, for whom, and with whom you are competing.

One of the new patterns in Knowledge Management (KM) is emerging from its relationship with advancement. In today's exceptionally focused business world, innovation is said to be the key variable that has the capacity drive companies or organizations to make esteem and compete worldwide opponents. As indicated by Pei (2008) that Knowledge Management highly emphasizes on the arrangement of knowledge to increase competitive benefit and innovation obliges information of knowledge to make new services or products, technologies, and/or managerial systems. It is subsequently sensible to say that knowledge management is relied upon to create the wellspring of knowledge that is vital to help innovation. As to this, it is critical to comprehend and

…especially in today global economy, yet many organizations grapple with how to develop and apply diversity principles in a way that will affect revenue and market position, as well as reputation (love 2010). And argues that for companies to successfully utilize the diversity, they must derive a ‘strategic framework’ where she emphasizes the importance of cultural inclusion while retaining diversified workforce. She outlays following traits for

02. Ansoff’s Matrix Corporate key choices are typically in light of the strategies through which an association could use its current upper hand in advancing quality and guaranteeing development (Lynch, 2009), while manageable upper hand depends to a great extent on how well an organization plays out these activities (Porter, 2008). The requirement for organizations to develop and extend has been known to drive item and promoting advancement, which thus prompts them into receiving distinctive hierarchical systems, in view of the items they offer and markets they target (Ansoff, 1984). Ansoff network characterizes two indispensable components for promoting: what is sold and its identity sold to. In this manner, it relates on the items and markets empowers to spring the four elective courses of activities while

Leaders are able to send a powerful message when they can demonstrate a commitment to diversity and inclusion that goes beyond rhetoric. In order to find leaders who are a part of the diversity movement, you have to find companies that have the reputations for successfully influencing diversity. When you find those companies and leaders, you then have to assess the leaders progress by examining leadership attitudes, employment statistics, and third-party recognition. Cultural differences should also be taken into account when assessing companies and their leaders about diversity.