Investor Presentaiton
5.1 HOW CAN WE MAKE OUR NATION COMPETITIVE?
(COMPETITIVE ADVANTAGES OF NATION BY MICHAEL E. PORTER)
The government acts as a
catalyst and challenger to
increase the competitive
performance of companies by:
Stimulating early demand for
advanced products.
Focusing on special factor
creation.
Stimulating local rivalry by
anti trust regulations.
Building clusters.
Government
Direct competition impels
firms to work for increases in
productivity and innovation.
Firm Strategy,
Structure &
Rivalry
Key (or specialized)
factors involve heavy,
sustained investment,
thereby creating
competitive advantage as
they are difficult to
duplicate:
Key factors: Skilled labor,
capital & infrastructure
Non-key factors: Raw
materials, unskilled labour.
Source: Michael Porter. "Competitive
Advantage of Nations", 1998
Factor
Conditions
Related &
Supporting
Industries
Demand
Conditions
Spatial proximity of upstream and downstream
industries facilitates the exchange of
information and promotes a continuous
exchange of ideas and innovations.
Demanding customers
press firms to improve
their competitiveness via
innovative products, high
quality, etc.
Clusters: Groups
of interconnected
firms, suppliers,
related industries
and institutions
within a region
Source: The Competitive Advantage of Nations, Michael E. Porter, 1990
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