Japans Competitive Advantage in Cars and United States in Semi-Conductors

Skilled human resource or infrastructures in a given country are elements of production that provides the company with the necessary tools needed to compete effectively in a given industry. The reality is that these national variables offer initial advantages for national, competitive economy. Every country has certain variables that are more advantageous. For instance, Japan’s enormous group of engineers is mirrored by the innumerable number of engineering grandaunts. It is the committed undertaking of these engineers that has made Japan a success story in the manufacturers of some of the best cars in the world. According to Porter (1990) these underlying variables are neither innate nor inherited but cultivated.

Japans Competitive Advantage in Cars and United States in Semi-Conductors

Demand in the local market can impact the way in which products are created and innovated. Porters allege that domestic demands depend on three features including; clients’ preferences. Again, the buying power of clients puts pressure on domestic firms to fulfill such demands. For instance, consumers in Japan consider space-saving important, which provide the country the opportunity to specialise in compact goods while US long distance contributed to competitiveness in huge truck engines. Moreover, the industry can enjoy advantage in the domestic market compared to global markets. In this case, the size of domestic market is not vital, however, to some degree; it encourages organisations to be creative. A huge domestic market that fulfills these conditions is greatly supportive of global competitive advantage (Lewis, Fitzgerald & Harvey 1996).

A similar and supporting sector refers to an international successful manufacturing firm creating benefits in other related manufacturing organisations. A country’s industry can be in a position to compete globally if there is a group of industries in domestic market associated with one another either horizontally or vertically among delivery channels, clients and suppliers. Germany for instance, has a group of industries in chemicals while the United States has in semiconductor sector (Hikino & Amsden 1994). Japan’s network association with suppliers enables its firms to send employees to help clients, locate factory near clients or invest in customized physical facilities. Thus, these attempts enable Japanese automobile firms to keep up with not only inventory but also reduce transport expenses in turn allow them to enhance product development. Like the way Toyota benefitted from its production channels since it developed assembly plants near suppliers.

Japans Competitive Advantage in Cars and United States in Semi-Conductors

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