National Competitive Advantage: World Leadership in Specific Industries

5 important questions on National Competitive Advantage: World Leadership in Specific Industries

What is the 'Death-of-Distance Hypothesis'?

An assumption that geographic location alone should not lead to firm-level competitive advantage because firms are able to source inputs globally.

What is a National Competitive Advantage?

World leadership in specific industries.
Companies from home countries that are world leader in specific industries tend to be the strongest competitors globally.

Porter's Diamond of National Competitive Advantage: What are the 4 interrelated factors?

- Competitive Intensity in Focal Industry
- Demand Conditions
- Related and Supporting industries/Complementors
- Factor Conditions
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Porter's Diamond Framework: What is Competitive Intensity in Focal Industry?

Companies that face a highly competitive environment at home tend to outperform global competitors that lack such intense domestic competition


Focal = kern

Porter's Diamond Framework: What are Factor Conditions?

They describe a country's endowments (talents) in terms of natural, human and other resources.

! Competitive advantage often based on human capital or know-how !

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