1 / 11

Session 8 Competitive strategy under information economy

Explore the competitiveness of different industries in various countries and the sources of competitive advantage. Understand the impact of factor conditions, demand conditions, related and supporting industries, and the business environment on firm strategy and rivalry. Discover the role of clusters in increasing productivity and efficiency in the information economy.

matthewjsmith
Download Presentation

Session 8 Competitive strategy under information economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Session 8Competitive strategy under information economy

  2. What is your choice? • Shoes, bags, and other leather products? • Perfume, cosmetic? • Cars, vehicles?

  3. What is your impression? • Why USA is the No.1 country in economy? Which industries are most competitive compared with other countries? • Why Japan is the No.2 country in economy? Which industries are most competitive compared with other countries?

  4. Sources of competitive advantage of nations • Michael Porter: the competitive advantage of a nation comes from its industrial capability to innovate and upgrade, that is, the industrial competitiveness • In the process of globalization, the industrial competitiveness is more and more important • Where dose the industrial competitiveness come from? • The competitiveness of the companies in certain industry.

  5. Context for firm strategy and rivalry Factor (input) conditions Demand conditions Related and Supporting industries Productivity and the business environment • Diamond Model    

  6. Factor conditions • Presence of high quality, specialized inputs available to firms • Nature resources, energy crisis in China (good thing or bad thing) • Specialization factors: science and technology, HR, money, management, infrastructure and so on • The American management and the large organization

  7. Demand Condition • Size of the local demand：foster care in china • Sophisticated and demanding local customers • Local customer needs that anticipate those elsewhere： • Values and culture

  8. Related and supporting industries • Access to capable, locally based suppliers and firms in related fields • High-quality materials and suppliers • Related industries and supporting industries • Presence of clusters instead of isolated industries    

  9. Context for firm strategy and rivalry • A local context and rules that encourage investment and sustained upgrading, e.g., intellectual property protection • Meritocrat incentive systems across all major institutions • Open and vigorous competition among locally based rivals • Family SME and US large companies • Customer-oriented and technology-oriented • The goals of individuals and companies • The status of the industry

  10. Successful economic development is a process of successive economic upgrading, in which the business environment in a nation evolves to support and encourage increasingly sophisticated ways of competing.

  11. Clusters and competitiveness • Clusters increase productivity / efficiency • Efficient access to specialized inputs, services, employees, information, institutions, and “public goods” (e.g. training programs) • Ease of coordination and transactions across firms • Rapid diffusion of best practices • Ongoing, visible performance comparisons and strong incentives to improve vs. local rivals

More Related