Reactie toevoegen

According to competitive advantage of classical theory, one country’s competitive advantage is based on its factor of production such as land, labour, natural resources, and its currency values. Rather the nation’s competitive advantage is depending on the industry’s ability to innovate and upgrade. In other hand, modern scholars’ states that companies can gain advantage from the world best competitors because of pressure and challenge. This imply that competitive advantage is created, not inherited. companies benefit from their strong rivals’ suppliers and local customer which based domestically. The role of nation is grown from time to time in acquisition of competitive advantage, and it has been created and sustained through highly localized process. The difference in national values, culture, economic structure, institutions, and histories all contribute to the competitive success. One nation can succeed industry, and no country can or will be competitive in every industry, because of different challenges related to their home environment. The investigation conducted on ten selected leading trading nations on the pattern of national competitiveness success revealed that nations gain competitive advantage only in particular industry.

Currently, labour costs, interest rates, exchange rates, technologies are the most influential determinants of competitiveness. From companies’ point of view merger, alliance, strategic partnerships, collaboration, and supranational globalization are today’s focus issues. In line with this manager wants support from the government in different perspectives to achieve company’s competitiveness. Government followed different measures to promote national competitiveness including exercising various policies – which is from efforts to manage exchange rates, to new measures to manage trade to policies to relax antirust.

These types of approaches are not secure national competitive advantages due to lack of consistency. There is a need of new perspective and new tools/approach to the success of competitiveness which is emanate from internationally experienced industries. This means that we must know, what works, and why. Then we need to apply.