National Competitive Analysis: Framework, Cases and Lessons for GCC Economies Dr. D. Jeffrey Lenn School of Business George Washington University.

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Presentation transcript:

National Competitive Analysis: Framework, Cases and Lessons for GCC Economies Dr. D. Jeffrey Lenn School of Business George Washington University

A Major Strategic Question How can a nation gain competitive advantage in order to ensure sustainability in the increasingly globalized economy?

Major National Sectors Political Economic Social

Political Sector Governmental leadership and stability Political accessibility Administrative efficiency Legal and regulatory fairness Diplomatic partnerships Public information system

Social Sector Social cohesion Population Distribution of wealth Educational system and achievement Family solidarity “Civil Society” development Cultural arts advancement Social homogeneity/heterogeneity Entrepreneurial spirit

Economic Sector Macroeconomic –Factor Conditions –Demand Conditions Microeconomic –Industry organization –Firm structure and strategy

Determinants of National Advantage Factor Conditions Demand Conditions Related and Supporting Industries Firm Strategy, Structure and Rivalry Porter, 1990

Factor Conditions Human resources Physical resources Knowledge resources Capital resources Infrastructure Financial system/markets

Demand Conditions Demand composition (segmentation) Demand size and pattern of growth (segmentation) Internationalization of home demand (mobile or multinational)

Related/Supportive Industries Competitive advantage in supplier industries Competitive advantage in related industries

Firm Strategy, Structure and Rivalry Strategy of domestic firms Structure of domestic firms Goals –Firm –Individual –National Rivalry among domestic firms

The Dynamic Character of a National Economy

Stages in National Competitive Development Innovation Driven Investment Driven Factor Driven Porter 1990

A Factor Rich Economy Factor Conditions Demand Conditions Related and Supporting Industries Firm Strategy, Structure and Rivalry Porter 1990

Stages in National Competitive Development Wealth Driven Innovation Driven Investment Driven Factor Driven Porter 1990 Decline Advance

Stages in National Competitive Development Wealth Driven Innovation Driven Investment Driven Factor Driven Porter 1990 Decline Advance

Strategic Policy Choices to Increase National Competitive Advantage

Strategic National Policy Choices Investment Policy Industrial Policy Trade Policy InputProductionOutput Kotler 1997

Two Examples KoreaSingapore

The Major Strategic Question How can GCC countries gain competitive advantage in order to ensure sustainability in the increasingly globalized economy?