07 BUS 444 Chap 7

Demand conditions the nature of home market demand

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Unformatted text preview: to compete in a given industry. • Demand conditions The nature of home-market demand for the industry’s product or service. 7-6 Factors Affecting a Nation’s Competitiveness (cont.) • Related and supporting industries The presence or absence in the nation of supplier industries and other related industries that are internationally competitive. 7-7 Factors Affecting a Nation’s Competitiveness (cont.) • Firm strategy, structure, and rivalry The conditions in the nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry. 7-8 Factor Conditions • To achieve competitive advantage, factors of production must be created Industry specific Firm specific • The pool of resources at a firm’s or country’s disposal is less important than the speed and efficiency with which the resources are deployed 7-9 Demand Conditions • Demanding consumers drive firms in a country to Meet high standards Upgrade existing products and services Create innovative products and services 7-10 Related and Supporting Industries • Related and supporting industries Enable firms to manage inputs more effectively Allow joint efforts among firms 7-11 Firm Strategy, Structure and Rivalry • Rivalry is intense in nations with conditions of: Strong consumer demand Strong supplier bases High new entrant potential from related industries 7-12 Firm Strategy, Structure and Rivalry • Competitive rivalry increases the efficiency with which firms Develop within the home country Market within the home country Distribute products and services within the home country 7-13 Porter’s Diamond of National Advantage: As Applied to India 7-14 QUESTION All of the factors below have made India's so...
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