1. Competitiveness For Entrepreneur

2. Boston Industrial Model

3. The Emergence of New Economy Mass manufacturing Competition is Over Value of intangible assets Soft infrastructure critical Focus on activities not industries Creative Economy Demand Knowledge, Innovation

4. What is Competitiveness?

5. Political/ Legal Industry Environment DemographicEconomic Technological Global Competitive Environment Sociocultural Components Of The Macro Environment

6. Determinants of Productivity and Productivity Growth

7. Integration of Macro- and Microeconomic Reforms

8. Productivity and the Microeconomic Business Environment

9. What is Competitiveness? Competitiveness is determined by the productivity with which a nation uses its human, capital, and natural resources. Productivity sets a nation’s or region’s standard of living (wages, returns to capital, returns to natural resource endowments) –Productivity depends both on the value of products and services (e.g. uniqueness, quality) as well as the efficiency with which they are produced –It is not what industries a nation competes in that matters for prosperity, but how firms compete in those industries –Productivity in a nation is a reflection of what both domestic and foreign firms choose to do in that location. The location of ownership is secondary for national prosperity –The productivity of “local” industries is of fundamental importance to competitiveness, not just that of traded industries –Devaluation does not make a country more competitive Michael E. Porter

10. Competitiveness Is NOT… Abundant Natural Resources Cheap Labor Cheaper Currency Better Government “Incentives” What is competitiveness ?

11. New Paradigm of Globalization Competition Source: Porter Competitiveness Firm Strategy, Industry Structure Related and Supporting Industry Market Demand Global Floor “ISO” Ceiling Low Cost, Low Value Trap Labor Intensive Vertical/Specific Industry Vertical/Specific Industry Labor Intensive Supply

12. Collaboration Concepts

13. Competitiveness Is… Intersection of Public Policy and Commercial Strategy

14. Strategy BEFORE Policy PRIVATE RESTRUCTURE REPOSITION PUBLIC Competitiveness Is…

15. Pursuing Effective Dialogue Individual Company Ad-hoc Complaints Operational Level Laundry Lists Anecdotal Evidence Concessions Opposite Sides Industry Clusters Comprehensive Vision Strategy Priorities Data and Analysis Co-Responsibility Same Side of Table INEFFECTIVEEFFECTIVE Competitiveness Is…

16. Competitiveness Measurement

17. Competitiveness Evaluation

18. Competitiveness Cube

19. Understanding Competitiveness

20. Competitiveness Measurement

21. Competitiveness Indexes

22. Competitiveness Ranking

23. Stages of Competitiveness Development

24. Competitiveness Theories

25. Threat of New Entry Rivalry Among Existing Competitors Bargaining Power of Customers Threat of Substitutes Bargaining Power of Suppliers Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Government policy Expected retaliation Relative price performance of substitutes Switching costs Buyer propensity to substitute Industry growth Fixed costs / value added Overcapacity Product differences Brand identity Switching costs Concentration and balance Informational complexity Diversity of competitors Corporate stakes Exit barriers Differentiation of inputs Switching costs Presence of substitute inputs Supplier concentration Importance of volume to supplier Cost relative to total purchases Impact of inputs on cost or differentiation Threat of forward integration Buyer concentration Buyer volume Buyer switching costs Buyer information Ability to integrate backward Substitute products Price / total purchases Product differences Brand identity Impact of quality / performance Buyer profits Porter’s Five Forces Source: Michael E. Porter, Competitive Advantage (New York: Free Press, 1985)

26. The Five Competitive Forces Force Entry Rivalry Substitutes Buyers Suppliers Erecting barriers (isolating mechanisms) create exploit economies of scale, aggressive deterrence, design in switching costs, etc. Compete on nonprice dimensions: cost leadership, differentiation, cooperation, etc. Improve attractiveness compared to substitutes: better service, more features, etc.. Reduce buyer uniqueness: forward integrate, differentiate product, new customers, etc.. Reduce supplier uniqueness: backward integrate, obtain minority position, second source, etc..

27. Porter’s Diamond Model

28. Diamond Model Cluster

29. Customers Firm Suppliers CompetitorsComplementors A player is your complementor with respect to customers if customers value your product more when they have the other player’s product as well A player is your competitor with respect to customers if customers value your product less when they have the other player’s product as well A player is your complementor with respect to suppliers if it is more attractive for a supplier to provide resources to you when it is also supplying the other player A player is your competitor with respect to suppliers if it is less attractive for a supplier to provide resources to you when it is also supplying the other player Coopetition and the Value Net Source: Adam Brandenburger and Barry Nalebuff, Co-operation (New York: Currency Doubleday, 1996)

30. CLUSTER MAPS Target Markets Target Markets Supporting Industries Supporting Industries Cluster Driver Cluster Facilitator Core Cluster

31. The Collaborative Competitiveness Development

32. Competitiveness Directions

33. The Eight Questions How wired is your country? How fast is your country? Is your country harvesting it’s knowledge? How much does your country weigh? Does your country dare to be open? How good is your country at making friends? Does your country’s management get it? How good is your country’s brand? Friedman’s “Eight Habits of Highly Effective Countries”

34. Is R&D Advantage? “high tech”industries Advantage? Cheap Labor? Abundance Resources? Questions For New Business?

35. Entreprenue is –Innovation –Strategic Management System Thinking –Collaboration –Financial tools –Commercialization, etc. Directions

36. Enright’s Meso Model

37. Enright’s Market Failures Impacted Information Managerial Myopia Under-provision of public goods Coordinate Failure

38. Innovation Access Innovation Access Extreme Specialization Information Spillovers Faster Innovation Adopters Easy Access to Resources Easy Access to Resources Flexibility and Rapid Response Flexibility and Rapid Response Limitated Facilitates

39. The Sources Advantage of the Firms Activities Resources Knowledge Enright 2002

40. Leap Frog (Innovation Driven) Product InnovationProduct Innovation Process InnovationProcess Innovation Business Model InnovationBusiness Model Innovation Breakthrough InnovationBreakthrough Innovation

41. Clusters

42. Cluster Concepts

43. Cluster IS “A cluster is a geographically proximate group of companies and associated institutions in a particular field, linked by commonalities and complementarities.“ Michael E. Porter.

44. Cluster Values Competitive strategy is about being different. It deliberately chooses a different set of activities to deliver a unique mix of value Michael E. Porter.

45. And, cluster is not just an alliance

46. Examples: Ceramic Tile Companies and Suppliers in 30 KM. Radius

47. Cluster Strategy Organic Cluster Strategies Transplant Cluster Strategies Hybrid Strategies

49. Cluster Requirements A direct dialog with the cluster firms to better understanding of the industry needs. Create awareness of existing support programs to firms and associations in the industry. Designing tailor made support for the industry. Involving private sector in their financing and management. Coordination within different Government departments to support the industry.

50. Foster Cluster Development STATISTICAL OBSERVATION INDUSTRY STUDIES FIRMS FORAE(Dialog) CHANGE MANAGEMENT + -

51. Italy Clusters

52. USA Clusters

53. Cluster Maps Clusters must be evoluing by private and public influrencing actions

54. Organization Network

55. Business Improvement For SME

56. Clustering Scottish Enterprise Model Dulch’s 9 Steps Cluster Initiative Performance Model (CIPM)

57. New Strategy Working Group Meetings Organize Cluster Working Groups Action Group: Define Vision, Key Themes Working Group Co-Chairs Participants Working Group Co-Chairs Participants Initiative Team Cross-Cutting Initiative Teams Broad Vision, Strategy, Initiatives Key Themes New Business Propositions and Enabling Actions for Each Theme Scottish Enterprise Methods MobiliseDiagnose CollaborateImplement

58. Scottish Tourism One to three hours from our main markets which are the central belt of Scotland and the North of England 6pm in the city by 8pm relaxing in the Scottish Borders Quiet Roads in the Scottish Borders

60. Duch’s 9 Step Methods

61. Objectives Impacting the leaders will initiate the change

62. Methodology

63. Cluster Drive Survival

64. Cluster Motivation

65. CIPM Model

66. Cluster Lifecycle

67. Cluster Actors

68. Objective Checklist

69. Target Area of Activity