Competitive advantage in national context

Despite the globalization of production & markets, many of the most successful companies in certain industries are still clustered in a small number of countries.

Biotechnology & computer companies – U.S.

Electronics Company – Japan.

Chemical & Engineering company – Germany.

This suggests that the nation – state within which a company is based may have an important bearing on the competitive position of that company in the global market place.

Companies need to understand how national factors can affect competitive advantage, for then they will able to identify.

1. Where their most significant competitors are likely to come from.
2. Where they might want to locate certain productive activities.