The Competitive Advantage of Nations
The prosperity of a nation and the success of the companies that do business there is something that must be created, not inherited from generation to generation. The pressure and challenges companies set for their employees is how they advance, promote innovation and how they ultimately gain competitive advantage against competitors worldwide. This is also the case at a local level, a nations companies will see great benefits from having strong competitors domestically, aggressive home-based suppliers, and a demanding customer base at a local level. However, the basic similarity among people is what defines a nation and what ultimately is the cause and effect of national boundaries. Although success can not inherited the culture of a nation can be and is what pushes certain nations to be consistently innovative year after year. Daniels make the point (page 53) "that most people acquire their basic value systems as children" and "these values are not easily changed later on." Although every company employs a different strategy and may change their strategy depending on the state of the economy the fundamentals of every companies are the same. The strive to be innovative which is how they gain competitive advantage at both a local and global level. Whether it is improving a market that they already do business in or create competitive advantage by entering an untapped market, companies can not progress and continue to be successful without having innovation as a priority. On the other hand markets such as the huge U.S. defense market has actually retarded international competitive success. The Diamond of National Advantage helps explain why certain nations are consistently capable of innovation. The Diamond consists of four attributes; -Factor conditions such as skilled labor or infrastructure . - Demand conditions, having a home market-demand
- Related and Supporting Industries. The presence or absence in the nation...
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