Competitive Advantage of Nations Porter by Michael Porter
Michael E. Porter, the writer of Competitive Advantage of Nations discussed the basic factors which are responsible for the progress of the various nations. Michael E. Porter is a professor at the Bishop William Lawrence University at Harvard Business School. His work is recognised in many firms, by many governments, corporations and academic circles globally. Competitive is a theory that addresses to the criticisms of the comparative advantage. This theory was proposed by Michael Porter in 1990. It suggests that the business should consist of policies that can create goods to sell at high prices in the market. The productivity growth helps in the national strategies. This theory is based on the fact that cheap labour is available at everywhere and natural resources are not enough for a good economy.
Competitive advantage occurs when an organisation develops a set of attributes or it may acquire them that allow it to perform better than its competitors. These attributes may include natural resources, inexpensive power or the skilled personnel resources. Also, the information technology may be included in this for the advance business technologies for better performance. New technologies like robotics and information technology may be included as the part of the product. The information technology provides with new methods for advance processes and information.
In simple meaning, the term competitive advantage is the ability that is gained by any firm or organisation through attributes and resources that allows it to perform at higher level and perform better than all its competitors in the market. The successful implementation of the strategies lifts a firm up than all its competitors by facilitating the firm with better technologies and methods. The superior performance of any firm reflects the competitive advantage.
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Tagged as Bishop William Lawrence University, competitive advantage, Harvard Business School, michael porter, natural resources + Categorized as Economy articles, Ladership & Management, Marketing & PR