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The competitive advantage of nations (The company agenda (Create pressures…
The competitive advantage of nations
Patterns of national competitive success
Unites States
Germany
Japan
Two parts of the study
Identified all industries in which the nation´s companies were internationally successful, using available statistical data, supplementary published sources and field interviews.
Possessed competitive advantage relative to the best worldwide competitors
Examined the history of competition particular industries to under stand how competitive advantage was created
To provide insight into the development of both the industry and the nation´s economy
How companies succeed in international markets
Companies achieve competitive advantage through acts of innovation
Approach innovation in its broadest sense including both new technologies and new ways of doing things
The Diamond of national Adventage
Attributes
Demand conditions
Firm strategy, structure, and rivalry
Factor conditions
Related and supporting industries
What is national competitiveness?
Is one of the central preoccupations of government and industry in every nation
The diamond as a system
Self-reinforcing elements
Domestic rivalry
Promotes improvement in all the other determinants
Geographic concentration
It elevates and magnifies the interaction of the four separate influences
The rol of government
Propose policies that would actually hurt companies in the long run
Create the demand for more helping
Encourage or push companies to raise their aspirations and move to higher levels of competitive performance
The company agenda
Create pressures for innovation
Seek out the most capable competitors as motivators
Establish early-warning systems
Improve the national diamond
Welcome domestic rivalry
Globalize to tap selective advantages in other nations
Use alliances only selectively
Locate the home base to support competitive advantage
The role of leadership
Leaders believe in chage
Leaders energize their organizations to innovate continuously
Leaders recognize the importance of their home country as integral to their competitive success and work to upgrade it.