Michael Porter's Theory Of Competitive Advantage

In the early of the establishment companies and trade was less of innovation and competitive advantages because of poor communication between peoples and nations, where each trade was independent of its region and limited, but now with the emergence of globalization and technology is becoming important that companies and nations have competitive advantage in order to continue the local market and because it is a tool for innovation and excellence. In this TMA I will explain the importance of the nation's to have more than one type of industry, and the importance of developing competitive advantage through policies by mentioning four of them.

Question 1:

The reliance on one source of income for the country is a major constraint in many developing

In 1990, Michael Porter contributed to research on international competitive advantage through the publication of a well-established theory that included several methods also including a diamond theory. The aim of this research was to understand the effectiveness of the nations in generating competitive advantage through industry and industrial sectors and local conditions of the nations and the strategies of companies competing in the country and support, either the main influences are the government and the production of opportunities where they are the first motivation to create a competitive advantage and industries. Michael Porter's theory has helped the way in which some nations lacked the benefit of competitive advantage. The competitive advantage of nations has given way to solving problems such as policy-making, reforming business strategy, producing specific industries for excellence and it also results from the research and planning of the competitive advantage of nations for the production of innovation and the creation of new products and development. However, when most of the centuries start to focus on providing the competitive advantage its one of the reasons for innovation and globalization. In the facing of global and

There are four policies and proposals which I will present that may be able to help Oman to develop their policies. First, devaluation, as stated by Michael Porter in his theory of competitive advantage of nations, is that devaluation is one of the ways to producing competitive advantage, which may lead to the promotion of local exports and domestic production of the country. Therefore, the reducing of the value of the Omani currency in the global and local markets it is possible to increase the production of products outside of Oman, which generates the competitive advantage of the nation. This type of policy is often taken by the government, which is the key to making local companies able to produce and innovate to enter the competition. Second, foreign investment in Oman, where the foreign investment policies in Oman are few and limited due to the strict laws followed by Oman in foreign investment procedures, and thus the economic diversification in Oman is limited and so few which let the production of local and international competitive advantage is very low. Oman is characterized by a