Business Level strategy Assignment Sample
Added on 2021-04-17
9 Pages2074 Words101 Views
|
|
|
Business Level strategy 1BUSINESS LEVEL STRATEGY /GENERIC STRATEGIESby (Name)The Name of the Class (Course)Professor (Tutor)The Name of the School (University)The City and State where it is locatedThe Date
Business Level strategy 2Business Level Strategy /Generic StrategiesFactors for national competitive advantage in Kuwait According to Michael Porter (1990), a country’s prosperity is created and not inherited.That is to say, a nation’s success does not grow out of its natural resources, currency value,interest rates, or even its labor pool as traditional economists suggest. Instead, Porter (1990)argues that a country’s competitiveness relies on the capacity of its companies to improve andinnovate. In a world where the global competition is continuously increasing, the source ofcompetition has shifted to the conception and incorporation of ideas. Thus, countries thrive inspecific industries because their home environment is the most dynamic and forward looking.Thus, Porter developed the Diamond framework to explain the determinants of nationalcompetitive advantage. According to the Porter’s Diamond model, these determinants includedemand conditions, firm strategy, structure and rivalry, related and supporting industries, andfactor endowment conditions (Porter 1990). Thus, Kuwait can take advantage of these factors tocreate policies that helps in the development of national competitive advantage that will attractmultinational corporations into the country and protect domestic firms from competition at thesame time. According to Porter’s model the determinants of national competitive advantage in Kuwaitinclude:Firm Strategy, Structure and RivalryBy and large, Firm Strategy, Structure and Rivalry refers to the fundamental fact thatcompetition causes countries and firms to develop means to increase their production andincrease technological innovations. Therefore, the conditions that govern how companies are
Business Level strategy 3formed, organized and managed plays a significant role in determining whether firms in thecountry will be able to attain competitive advantage over firms from other nations. Therefore,having this factor in mind, the government of Kuwait can initiate policies that will work towardsthe development of competitive advantage for its local firms based on this factor. Until 2001, article (23) and (24) of the Kuwaiti Commercial Code dictated that anyforeign firms seeking to set up firms in the country must have a Kuwaiti partner with a share ofmore than 51 percent in the company (“Kuwait-Foreign Investment,” 2017). As a result, foreigncompanies could not easily set up their operations in the country, thereby limiting the number ofMNCs developed in the country. However, the revision of this article in 2001 allowed foreignownership of up to 100 percent of business entities in certain sectors (“Doing Business,” n.d.). Inturn, this policy revision brought about an increase in foreign direct investment into the country(“Introduction on doing,” n.d.). What is more, it increased the rate at which multinationalcorporations set up in the country. Therefore, with respect to firm strategy and structure, theKuwait government has initiated business friendly policies that encourage the establishment anddevelopment of MNCs within the country, thereby increasing foreign direct investment into thecountry and enhancing its competitive advantage in the global arena. Demand Conditions Primarily, the demand conditions of a nation refer to the nature and size of the customerbase for goods and services within the country. Noteworthy, the nature of demand within acountry drives companies to invest in product innovation and improvement in order to meet theneeds of the consumers. Therefore, the more demanding the consumers are within the market;the higher the pressure companies face to continually progress their competitiveness through
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Strategies for Creating More Employment in Kuwait Marketlg...
|9
|2304
|57
The Diamond of National Advantagelg...
|8
|2262
|419
Business Level Strategy Assignment (Doc)lg...
|10
|2325
|17
Strategies for Competitive Advantage and Employment Creation in Kuwaitlg...
|9
|2177
|159
Application of Porter's Diamond National Advantage Theory for FDI in Kuwaitlg...
|9
|2090
|155
Diamond of National Advantage and Policies for Enhancing Capacity of Industrieslg...
|10
|2018
|258