Political Science 2211E Chapter Notes - Chapter Porter: Competitive Advantage
17 Apr 2018
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Defi(cid:374)ed a (cid:374)atio(cid:374)"s i(cid:374)dustry as i(cid:374)ter(cid:374)atio(cid:374)ally su(cid:272)(cid:272)essful if it possessed (cid:272)o(cid:373)petiti(cid:448)e advantage relative to the best worldwide competitors. Some innovations create competitive advantage when they create an entirely new market. When competitors are slow to respond, innovation yields competitive advantage. In international markets, innovations that yield competitive advantage anticipate both domestic and foreign needs. Competitors will overtake any company that stops innovating and improving. Two additional prerequisites for sustaining competitive advantage. It can only be sustained through relentless improvement: a company must adopt a global approach strategy, creating more sustainable advantages often means that a company must make its existing advantage obsolete. Successful companies have a bias towards the way they do things, want to maintain what they have: change = fear. Essential ingredients for achieving international competitive success: the availability of resources and skills necessary, the information that shapes the opportunities that companies perceive, the goals of the owners and the pressures on the companies to innovate and invest.
