Porters Force for Competitive Advantage Essay Example | Topics and Well Written Essays - 3250 words - 7

Porters Force for Competitive Advantage - Essay Example A comparative analysis of the systems followed by businesses of various economies to gain edge is evaluated from Porter’s competitive advantage view. Â  The model’s approach to identify the cluster of small industries where their competence has a direct correlation with the performance of other businesses in the same economy, along with other factors, adds value chain to the process. The advantages can be from consumer-business relationship or local market context, giving it an edge over similar businesses in offshore markets. The various elements of the model is as in the figure below, that shows the business elements and suggests the underlying factors boosting the affectivity of the competence. Further, Rugman and Verbeke (1993) suggested that the factors affecting the competence are related with each other and existing market environment. The four distinct determinants of the model have great influence on the strengths of the business located therein. The vertical relationships of buyers’ intelligence and suppliers are correlated horizontally with technology, skills, distribution challenge etc. The use of the model in the process gives the overview of the industry in terms of competition in the industry. Pressman (1991) observed that the respective Government identifies these clusters to support and promote them as a source of economic growth. Factor Conditions: The position of a business as production capacity, skill manpower availability, infrastructure, legal frameworks etc aided by the government agencies determines the factor conditions. The conditions would determine the performance and ease of doing business in a particular economy.

Knowledge Economy Essay Example | Topics and Well Written Essays - 1000 words

Knowledge Economy - Essay Example A knowledge economy can exhibit itself in the interconnections between science and technology; the emphasis on creativity as critical to economic growth and competitiveness; the increasing focus on education and life-long learning; and the orientation toward investments in intangible goods and services, such as R&D, rather than fixed capital; and the rapid adoption of information and communication technology (ICT) that is providing nations greater independence as well as greater connectiveness (Archibugi & Pietrobelli, 2003). However, some contend that the expansion of knowledge economies within developing nations can also bring with it negative consequences, such as increasing the divide between developed an developing nations, and crowding in their economic development (Casanueva, 2001; Pietrobelli, 2000). This paper aims to present the argument that a knowledge economy within a developing nation can contribute to numerous negative effects on a countries economic and social development. Firstly, the positive arguments that promote the adoption of a knowledge economy by developing nations shall be presented. Secondly, the contrasting negative impact consequences to the adoption of KE shall be provided. Finally, a conclusion shall synthesise the main points of the paper and make recommendations for future research.It is generally conceded that a knowledge economy can positively contribute to the development of a nation's economic and social institutions by way of facilitating more effective goods and services production and delivery, lowering costs to public citizens (Archibugi & Pietrobelli, 2003). As such, developing nations are encouraged to adopt a knowledge economy as an efficient method for improving their competitiveness on the global marketplace, as well as alleviating their wel fare needs. In order to effectively incorporate a knowledge economy it is necessary for developing nations to capitalize on their economic and social strengths, and also to plan appropriately on how to invest in human capital, social institutions, technology and innovative and competitive businesses (Kuznetzov & Sabel, 2003). Countries such as Chile, Ireland, Malaysia and Korea are portrayed as success stories of countries, which have incorporated a knowledge economy into their social and political value systems (Kuzetzov & Sabel, 2003). Increasingly, science-based products and services are being incorporated into world trade, foreign direct investment (FDI) of multinational corporations to facilitate innovation globally, and cooperation across the boarders of scientific and technological research and development (Narula & Sadowski, 2002). Less developed countries are able to benefit from the increasing flow of knowledge if they are able to implement active policies that focus on enhancing learning opportunities and improving access to new knowledge and technology (Archibugi & Pietrobelli, 2003). Additionally, the opportunity to participate in the 'brain circulation' of open migration of people and their knowledge across boarders provides job prospects and educational experiences that prepare the LDC citizen to participate in a global workforce (Kuznetsov & Sabel, 2003).Additionally, a study investigating indicators that represent knowledge within 92 nations, during the period