The industrial clusters/diamonds and managerial enterprises of Japan and United States economies?

The structure of the organization, strategy and competition are important factors that shape any given business (Lawrence & Braddon 1999). Similarly, cultural factors are essential tools for every country. In particular, every nation has cultural practices that guide the manner in which businesses are organised (Abe & Fitzgerald 1995). This is an essential aspect when it comes to creating benefits for not just industry but also the entire country. In Japan, there is intense competition especially in the auto sector, as it has about seven firms including Honda, Mitsubishi, Subaru, Mazda, Toyota and Nissan fighting for the market. These organisations compete in the domestic market and global markets (Mowery 1999). Intense rivalry in the home market requires that these firms have innovative technological tools, brands and management strategies to remain competitive.

The industrial clusters/diamonds and managerial enterprises of Japan and United States economies?

For instance, there are many engineers in the management that concentrates on enhancing manufacturing procedures. On the other hand, United States has two main firms in the auto industry-General Motors and Ford. The quality of vehicles from Japan is higher in comparison to US. Japanese automakers were able to take 25% of American vehicle market whilst US were not able to compete due to Japanese vehicle quality and price (Madar 2010). Besides structure of the organization, strategy and competition, Porter (1990) highlights two essential elements allowing countries to transition their competitive position while altering diamond framework conditions. Chance scenarios have varied effects on countries like the oil shocks that boosted Japanese sector (Hutton 2011). Moreover, government’s role is necessary in stimulating the contemporary global competition. As such, governments could initiate policies for countries to gain competitive advantage and industries to be competitive internationally.

The industrial clusters/diamonds and managerial enterprises of Japan and United States economies?

The US and Japanese governments for instance, have provided a good environment for economic performance in these countries (Vogel 2006). Again, governments can help develop the competitive advantage by making sure that there a significant potential for product success, ethical principles, promote negotiation between buyers and suppliers at local level. Like in the US, the government supported semiconductor sector by concentrating on certain products to fulfill clients’ needs such as the missile structure of the American national security (Lane & Probert 2009).

The industrial clusters/diamonds and managerial enterprises of Japan and United States economies?

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The industrial clusters/diamonds and managerial enterprises of Japan and United States economies?