Running head: NATIONAL COMPETITIVE ADVANTAGE 1
National Competitive Advantage
Student’s Name
Institutional Affiliation
, NATIONAL COMPETITIVE ADVANTAGE 2
National Competitive Advantage
Different experts have emerged to evaluate the concept of competitive advantage of
nations in the global market structure. However, the complexity of its definition has resulted in
the creation of different definitions of the term. Some have revealed its correlation to
productivity and lower labor costs in an organization. Other experts such as Michael Porter have
related national competitiveness to the ability of a country to increase its innovation in
comparison with its national competitors. One common conclusion is that all the definitions
associate competitive advantage of a country with its consequent success stories within and
beyond its current boundaries (Luthans, 2017). These advantages have resulted in the creation of
developed developing and super-industries countries in the world. Experts believe that a country
does not gain an advantage due to its natural location but due to its earned characteristics. Hence,
it is important to address how nations gain competitive advantage through the presence of
determinants and to provide real-life examples of successful countries that have implemented
industrial policies.
Experts have revealed that countries gain competitive advantages through the
manipulation of various key determinants present in the external markets. Michael Porter created
the diamond model that helped the country redefine their competitiveness based on four key
determinants around their local industries. Michael argued that countries manage to gain an
advantage based on their level of innovation in different industries (Porter, 1990). Innovation
focuses on aspects such as production strategies that incorporate new technologies to improve
the quality of the output products. A country tends to lag due to its inability to compete
effectively in the level of innovation done by its competitors. Consumers tend to demand new
products from their providers to remain relevant in the changing industries. For instance,
National Competitive Advantage
Student’s Name
Institutional Affiliation
, NATIONAL COMPETITIVE ADVANTAGE 2
National Competitive Advantage
Different experts have emerged to evaluate the concept of competitive advantage of
nations in the global market structure. However, the complexity of its definition has resulted in
the creation of different definitions of the term. Some have revealed its correlation to
productivity and lower labor costs in an organization. Other experts such as Michael Porter have
related national competitiveness to the ability of a country to increase its innovation in
comparison with its national competitors. One common conclusion is that all the definitions
associate competitive advantage of a country with its consequent success stories within and
beyond its current boundaries (Luthans, 2017). These advantages have resulted in the creation of
developed developing and super-industries countries in the world. Experts believe that a country
does not gain an advantage due to its natural location but due to its earned characteristics. Hence,
it is important to address how nations gain competitive advantage through the presence of
determinants and to provide real-life examples of successful countries that have implemented
industrial policies.
Experts have revealed that countries gain competitive advantages through the
manipulation of various key determinants present in the external markets. Michael Porter created
the diamond model that helped the country redefine their competitiveness based on four key
determinants around their local industries. Michael argued that countries manage to gain an
advantage based on their level of innovation in different industries (Porter, 1990). Innovation
focuses on aspects such as production strategies that incorporate new technologies to improve
the quality of the output products. A country tends to lag due to its inability to compete
effectively in the level of innovation done by its competitors. Consumers tend to demand new
products from their providers to remain relevant in the changing industries. For instance,
