Global Strategy Porter

Global Strategy Porter - COMPETITIVE ADVANTAGE OF NATIONS...

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COMPETITIVE ADVANTAGE OF NATIONS This is presentation is based on Michael E. Porter’s book: The Competitive Advantage of Nations , Free Press, 1990 Source: The presentation slides were prepared by George Yip, UCLA
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MOR 492 Porter on Global Strategy 2 Voigt, 2002 Porter’s Competitive Advantage of Nations Extends and modifies traditional theory of comparative advantage to take into account the following factors: Competitive advantage is about companies -- the importance of the national environment is providing a home base for the company Sustained competitive advantage depends upon dynamic factors -- innovation and upgrading of firm’s resources and capabilities The critical role of the national environment is its influence upon the dynamics of innovation and upgrading
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MOR 492 Porter on Global Strategy 3 Voigt, 2002 Firm Strategy, Structure, and Rivalry Factor Conditions Demand Conditions Related and Supporting Industries Source: Porter (1990) The Determinants of National Advantage
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MOR 492 Porter on Global Strategy 4 Voigt, 2002 * Human resources * Physical resources * Knowledge resources * Capital resources * Infrastructure Source: Porter (1990) Factor Conditions
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MOR 492 Porter on Global Strategy 5 Voigt, 2002 Home demand composition * Segment structure of demand * Sophisticated and demanding buyers * Anticipatory buyer needs Demand size and pattern of growth * Size of home demand * Number of independent buyers * Rate of growth of home demand * Early home demand * Early saturations Internationalization of domestic demand * Mobile or multinational local buyers * Influences on foreign needs Source: Porter (1990) Demand Conditions
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MOR 492 Porter on Global Strategy 6 Voigt, 2002 Leather Footwear Leather Working Machinery Design Services Processed Leather Source: Porter (1990) Parts of Footwear Related and Supporting Industries
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MOR 492 Porter on Global Strategy 7 Voigt, 2002 Denmark Germany Italy Japan Korea Singapore Sweden Switzerland United Kingdom United States Dairy products, brewing Chemicals Lighting Cameras VCRs Port services Automobiles Pharmaceuticals Engines Electronic test and measuring equipment
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This note was uploaded on 11/09/2009 for the course MOR 492 at USC.

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Global Strategy Porter - COMPETITIVE ADVANTAGE OF NATIONS...

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