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business strategy


A nation’s competitiveness depends on the capacity of its industry to innovate and upgrade. Differences in national values, culture, economic structure, institutions, and histories all contribute to competitive success. There are striking differences in the patterns of competitiveness in every country; no nation can or will be competitive in every or even most industries.
We need a new perspective and new tools – an approach to competitiveness that grows directly out of an analysis of internationally successful industries, without regard for traditional ideology or current intellectual fashion.
The companies that have achieved international leadership employ strategies that differ from each other in every respect. But every successful company will employ its own particular strategy, the underlying mode of operation –the character and trajectory of all successful companies is fundamentally the same. Companies achieve competitive advantage through acts of innovation. Innovation can be manifested in a new product design, a new production process, a new marketing approach, or a new way of conducting training.
Some innovations create competitive advantage by perceiving an entirely  new market opportunity or by serving a market segment that others have ignored.
In international markets, innovations that yield competitive advantage anticipate both domestic and foreign needs. Information plays a large role in the process of innovation and improvement-information that either is not available to competitors or that they do not seek.
Patterns of National Competitive Success:             
The analysis of national competitiveness has focused on single nation or bilateral comparisons. By studying nations with widely varying characteristics and circumstances this study sought to separate the fundamental forces underlying national competitive advantage from the idiosyncratic ones. In each nation, the study consisted of two parts. The first identified all industries in which the nations companies were internationally successful, using available statistical data, supplementary published sources, and field interviews. A nation was considered the home base for a company it it was either a locally owned, indigenous enterprise or managed autonomously  although owned by a foreign company or investors.
The Diamond of National Advantage:
The diamond of national advantage playing an important role for the nation’s progress as depend upon the following factors
1.      Factor Conditions: The nation’s position in factors of production, such as skilled labor or infrastructure, necessary to compete in a given industry.
2.      Demand Conditions: The nature of home market demand for the industry’s product or service.
3.      Related and Supporting Industries: The presence or absence in the nation of supplier industries and other related industries that are internationally competitive.
4.      Firm Strategy, Structure and Rivalry: The conditions in the nations governing how companies are created, organized, and managed as well as the nature of domestic rivalry. These determinants create the national environment in which companies are born and learn how to compete.
The most important factors of production are those that involve sustained and ...

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