In a world of increasingly global competition, nations have become more, not less, important. ... Ultimately, nations succeed in particular industries because their home environment is the most forward-looking, dynamic, and challenging .
Which of the following is an advantage of industry to a nation?
1) They help in growth of a country both economically and socially . 2)They provide employment opportunities and therefore, help in reducing poverty. 1)They cause pollution.
How do you achieve international competitive advantage?
- Product quality.
- Strategic pricing.
- Customer service.
- Market positioning.
- Distribution networks.
- Innovation and access to new technologies.
What are the elements of national competitive advantage?
The four points represent four interrelated determinants that Porter theorizes as the deciding factors of national comparative economic advantage. These four factors are firm strategy, structure and rivalry; related supporting industries; demand conditions; and factor conditions .
What is Porter’s theory of competitive advantage?
Michael Porter proposed the theory of competitive advantage in 1985. The competitive advantage theory suggests that states and businesses should pursue policies that create high-quality goods to sell at high prices in the market . Porter emphasizes productivity growth as the focus of national strategies.
What were the causes and impact of industrialization?
Historians have identified several causes for the Industrial Revolution, including: the emergence of capitalism, European imperialism, efforts to mine coal, and the effects of the Agricultural Revolution . Capitalism was a central component necessary for the rise of industrialization.
What are the advantages of industrialization?
- Growth of industries leads to increase in production of goods and services which are available to people at cheaper rates.
- It reduces dependence on other countries and improves economy.
- It results in rising the standard of living.
- It creates new job opportunities helping in the removal of unemployment.
What are the 6 factors of competitive advantage?
The six factors of competitive advantage are quality, price, location, selection, service and speed/turnaround .
What are the 5 areas of competitive advantage?
- MARKETING. How can your marketing team make claims about your product and the ability to deliver it without knowing the capabilities of your supply chain? ...
- FINANCE. ...
- HUMAN RESOURCES. ...
- LEGAL. ...
- CUSTOMER SERVICE.
What are the four characteristics of a competitive advantage?
The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances .
What is the diamond of national advantage?
Micheal Porter gave the diamond theory of national advantage, which states that the features of home country are crucial for the success of an organization in the international markets . ... It describes the factors that contribute to the success of organizations in global industries.
What are examples of competitive advantages?
- Access to natural resources that are restricted from competitors.
- Highly skilled labor.
- A unique geographic location.
- Access to new or proprietary technology. Like all assets, intangible assets.
- Ability to manufacture products at the lowest cost.
- Brand image recognition.
What are the 4 competitive strategies?
- Cost leadership strategy. This strategy is implemented by Walmart. ...
- Differentiation leadership strategy. This is a killer strategy that allows brands to stand out among competitors. ...
- Cost focus strategy. ...
- Differentiation focus strategy.
What is Porter’s theory?
Porter’s Five Forces of Competitive Position Analysis were developed in 1979 by Michael E Porter of Harvard Business School as a simple framework for assessing and evaluating the competitive strength and position of a business organisation. ... Porter’s five forces help to identify where power lies in a business situation .
What are the three basic types of competitive advantage?
There are three different types of competitive advantages that companies can actually use. They are cost, product/service differentiation, and niche strategies .
How many attributes does Porter’s Diamond consist of?
Porter’s diamond shows four main attributes that he claims are the key deter- minants of national competitive advantage: factor conditions; demand conditions; related and supporting industries; and firm strategy, structure, and rivalry.
