Investor Presentaiton

Productivity and the Microeconomic Business Environment Context for Firm Strategy and Rivalry Factor (Input) Conditions • A local context that encourages efficiency, investment, and sustained upgrading Open and vigorous competition among locally based rivals Demand Conditions High quality, specialized inputs available to firms: - human resources - capital resources - physical infrastructure - administrative infrastructure - information infrastructure - scientific and technological infrastructure - natural resources CAON New Zealand Presentation 08-04-01 CK Related and Supporting Industries • Presence of capable, locally- based suppliers and firms in related fields . Presence of clusters instead of isolated industries Sophisticated and . demanding local customer(s) . · Unusual local demand in specialized segments that can be served globally Customer needs that anticipate those elsewhere Copyright 2001 Professor Michael E. Porter

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