Competitive Advantage in International Trade and Enterprises: A Comprehensive Analysis
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AI Summary
This report delves into the concept of competitive advantage within the context of international trade and enterprises. It explores the various factors that contribute to a firm's or country's ability to outperform its rivals in the global marketplace. The report examines the role of comparative advantage, opportunity cost, and key success factors in achieving competitive advantage. It also analyzes the impact of technology, digitalization, and globalization on the competitive landscape. Through real-world examples and insightful analysis, this report provides a comprehensive understanding of the importance of competitive advantage in international trade and its implications for businesses and economies.
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HI5016
INTERNATIONAL TRADE AND
ENTERPRISES
1
INTERNATIONAL TRADE AND
ENTERPRISES
1
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Executive Summary
International trade is being characterized as the trade which is being done in respects with the
administrations, products and capital crosswise over worldwide regions and also outskirts. In
different nations, this kind of exchange makes portrayal in respects with the best possible
offer of the (GDP). While the worldwide exchange has existence from the history, its
political, social and monetary significance is on increment in ongoing hundreds of years.
This report will have a clear description in regards with the competitive advantage with the
coordination of international trade and enterprise. For the purpose of having a global
presence, there is an essential need to have a competitive advantage with the support of
various factors like technology, the internet which will support in having profit and
development. Competitive advantage is considered as the use that a business is having over
the contenders. This can be gotten by better administrations and awesome qualities to the
clients. Commercial of the administrations and items with high calibre and low value offer
enthusiasm to the clients. Such interesting administrations and items are being perceived by
the objective market. It is essentially a component that backings a relationship to beat their
rivals. A noteworthy part is being played by worldwide exchange increasing upper hand.
Competitive advantage makes the age of incredible incentive for the company and
additionally for the investors because of specific conditions and qualities. Increasingly the
manageability of the upper hand, more troublesome it will be for the contenders to make the
balance of the favourable position. There are two various types of upper hand i.e. differential
preferred standpoint and similar favourable position. Each and every company must have
produced in such a manner that it will support to have proper development, growth as well as
competitive advantage in both national and international trade.
2
International trade is being characterized as the trade which is being done in respects with the
administrations, products and capital crosswise over worldwide regions and also outskirts. In
different nations, this kind of exchange makes portrayal in respects with the best possible
offer of the (GDP). While the worldwide exchange has existence from the history, its
political, social and monetary significance is on increment in ongoing hundreds of years.
This report will have a clear description in regards with the competitive advantage with the
coordination of international trade and enterprise. For the purpose of having a global
presence, there is an essential need to have a competitive advantage with the support of
various factors like technology, the internet which will support in having profit and
development. Competitive advantage is considered as the use that a business is having over
the contenders. This can be gotten by better administrations and awesome qualities to the
clients. Commercial of the administrations and items with high calibre and low value offer
enthusiasm to the clients. Such interesting administrations and items are being perceived by
the objective market. It is essentially a component that backings a relationship to beat their
rivals. A noteworthy part is being played by worldwide exchange increasing upper hand.
Competitive advantage makes the age of incredible incentive for the company and
additionally for the investors because of specific conditions and qualities. Increasingly the
manageability of the upper hand, more troublesome it will be for the contenders to make the
balance of the favourable position. There are two various types of upper hand i.e. differential
preferred standpoint and similar favourable position. Each and every company must have
produced in such a manner that it will support to have proper development, growth as well as
competitive advantage in both national and international trade.
2
Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................ 4
Competitive Advantage..............................................................................................................6
Conclusion................................................................................................................................12
3
Executive Summary...................................................................................................................2
Introduction................................................................................................................................ 4
Competitive Advantage..............................................................................................................6
Conclusion................................................................................................................................12
3
Introduction
International trade is being defined as the exchange which is being done in regards to the
services, goods and capital across international territories as well as borders. In various
countries, this sort of trade makes representation in regards to the proper share of the gross
domestic product (GDP). While international trade has existed from the history, its political,
social and economic importance is on increase in recent centuries. International trade
provides an opportunity to the countries and consumers to get exposed to new products and
markets. All sorts of products and services can be found in an international market like oil,
jewellery, food, wine, stocks, clothes, water, spare parts and currencies. There is also a trade
of services like transportation, consulting, tourism and banking. Sale of a product in an
international market is defined as an export and the product which is being purchased from
the international market is called import. Exports and imports are accounted for the current
account of a country in the balance of payments. Industrialisation, globalisation, competitive
advantage, transportation, outsourcing and multinational corporations all are having a crucial
impact on the international system of trade (Marta Mackiewicz, et. al. 2015).
In this report of the international trade and enterprise, the selected topic is of Competitive
Advantage. It is being defined as the leverage that a business is having over the competitors.
This can be received withbetter services and great values to the customers. Advertisement of
the services and products with high quality and low price give interest to the customers. Such
unique services and products are being recognised by the target market. It is basically a
feature that supports an association to outperform their competitors. A major role is being
played by international trade in gaining competitive advantage. Whenever there is an
expansion of the business, it supports in increasing overall profit and growth and this in
return helps in gaining competitive advantage in the business and also among countries. In
this assignment, competitive advantage and its related theories will be discussed in an
appropriate by having a proper explanation of reasons and also by having a discussion in
regards to countries and industries (Scarborough, 2016).
Competitive advantage is basically a strategic advantage that one business entity is having
over rival entities in the competitive industry. There are two terms in relation with the
competitive advantage and these are comparative advantage and opportunity cost.
Comparative advantage is basically a concept that there can be a production of certain goods
in an efficient manner than others because of various sorts of factors including availability of
4
International trade is being defined as the exchange which is being done in regards to the
services, goods and capital across international territories as well as borders. In various
countries, this sort of trade makes representation in regards to the proper share of the gross
domestic product (GDP). While international trade has existed from the history, its political,
social and economic importance is on increase in recent centuries. International trade
provides an opportunity to the countries and consumers to get exposed to new products and
markets. All sorts of products and services can be found in an international market like oil,
jewellery, food, wine, stocks, clothes, water, spare parts and currencies. There is also a trade
of services like transportation, consulting, tourism and banking. Sale of a product in an
international market is defined as an export and the product which is being purchased from
the international market is called import. Exports and imports are accounted for the current
account of a country in the balance of payments. Industrialisation, globalisation, competitive
advantage, transportation, outsourcing and multinational corporations all are having a crucial
impact on the international system of trade (Marta Mackiewicz, et. al. 2015).
In this report of the international trade and enterprise, the selected topic is of Competitive
Advantage. It is being defined as the leverage that a business is having over the competitors.
This can be received withbetter services and great values to the customers. Advertisement of
the services and products with high quality and low price give interest to the customers. Such
unique services and products are being recognised by the target market. It is basically a
feature that supports an association to outperform their competitors. A major role is being
played by international trade in gaining competitive advantage. Whenever there is an
expansion of the business, it supports in increasing overall profit and growth and this in
return helps in gaining competitive advantage in the business and also among countries. In
this assignment, competitive advantage and its related theories will be discussed in an
appropriate by having a proper explanation of reasons and also by having a discussion in
regards to countries and industries (Scarborough, 2016).
Competitive advantage is basically a strategic advantage that one business entity is having
over rival entities in the competitive industry. There are two terms in relation with the
competitive advantage and these are comparative advantage and opportunity cost.
Comparative advantage is basically a concept that there can be a production of certain goods
in an efficient manner than others because of various sorts of factors including availability of
4
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the natural resource, climate, productive skills and so forth. A country can have a
comparative advantage in the goods production if the goods can be produced by them at low
opportunity cost in comparison with another. Competitive advantage helps in addressing few
criticisms of comparative advantage. It occurs when an association develops or acquires a
combination of attributes or an attribute that helps to outperform its competitors. Apart from
this, the opportunity cost is another concept in the competitive advantage which is defined as
the cost of opportunity decline (the loss of the benefits which can be gained from an
opportunity); one of the valuable declined alternative (Scarborough, 2016).
5
comparative advantage in the goods production if the goods can be produced by them at low
opportunity cost in comparison with another. Competitive advantage helps in addressing few
criticisms of comparative advantage. It occurs when an association develops or acquires a
combination of attributes or an attribute that helps to outperform its competitors. Apart from
this, the opportunity cost is another concept in the competitive advantage which is defined as
the cost of opportunity decline (the loss of the benefits which can be gained from an
opportunity); one of the valuable declined alternative (Scarborough, 2016).
5
Competitive Advantage
As described above competitive advantage is being described as the condition which supports
a country or a company to make the production of services and goods of the equal value in a
desirable fashion and at the low price. These types of conditions support the productive entity
to make the generation of superior margins or more sales in comparison to the rivals of the
market. Competitive advantage is being attributed for the different kinds of factors which will
make the inclusion of customer service, intellectual property, distribution network, quality of
product offering, branding and cost structure. Competitive advantage makes the generation of
great value for the firm as well as for the shareholders due to certain conditions and strengths.
More the sustainability of the competitive advantage, more difficult it will be for the
competitors to make neutralization of the advantage. There are two different kinds of
competitive advantage i.e. differential advantage and comparative advantage. The ability of
the firm to make the production of services and goods in a more efficient manner in
comparison to the competitors that support to have great margins of profit develops a
comparative advantage. Rational consumers will make choice in regards to the cheaper
product in comparison with the offered substitutes. For instance, a car owner will make a
purchase of gasoline from the gas station which is cheaper in comparison with the other
station in an area. For various imperfect substitutes such as Pepsi vs. Coke, high margins for
the producers of low cost may bring high returns (Meihami&Meihami, 2014).
Geographic location, economies of scale and efficient internal systems can also make the
development of comparative advantage. A comparative advantage not just makes the
implication of better services and products, though. It only describes that the firm can make
an offering of services and products of similar value at the low cost. For instance, a firm that
makes manufacturing of the product in China may have low-cost labours in comparison with
the company that makes manufacturing in the U.S., so there will be an offering of equal
product at low price. In relation to the international trade economics, opportunity cost makes
a determination of the comparative advantage (Reed, et. al. 2012).
There is the development of the competitive advantage with the support of different attributes
that supports to fight with the competitors. These kinds of attributes make the inclusion of the
natural resources like inexpensive power, high-grade ores and access to skilled and highly
trained personnel human resources. New technologies like information technology and
robotics, needs to be included as the product’s part or will assist in its making. Information
6
As described above competitive advantage is being described as the condition which supports
a country or a company to make the production of services and goods of the equal value in a
desirable fashion and at the low price. These types of conditions support the productive entity
to make the generation of superior margins or more sales in comparison to the rivals of the
market. Competitive advantage is being attributed for the different kinds of factors which will
make the inclusion of customer service, intellectual property, distribution network, quality of
product offering, branding and cost structure. Competitive advantage makes the generation of
great value for the firm as well as for the shareholders due to certain conditions and strengths.
More the sustainability of the competitive advantage, more difficult it will be for the
competitors to make neutralization of the advantage. There are two different kinds of
competitive advantage i.e. differential advantage and comparative advantage. The ability of
the firm to make the production of services and goods in a more efficient manner in
comparison to the competitors that support to have great margins of profit develops a
comparative advantage. Rational consumers will make choice in regards to the cheaper
product in comparison with the offered substitutes. For instance, a car owner will make a
purchase of gasoline from the gas station which is cheaper in comparison with the other
station in an area. For various imperfect substitutes such as Pepsi vs. Coke, high margins for
the producers of low cost may bring high returns (Meihami&Meihami, 2014).
Geographic location, economies of scale and efficient internal systems can also make the
development of comparative advantage. A comparative advantage not just makes the
implication of better services and products, though. It only describes that the firm can make
an offering of services and products of similar value at the low cost. For instance, a firm that
makes manufacturing of the product in China may have low-cost labours in comparison with
the company that makes manufacturing in the U.S., so there will be an offering of equal
product at low price. In relation to the international trade economics, opportunity cost makes
a determination of the comparative advantage (Reed, et. al. 2012).
There is the development of the competitive advantage with the support of different attributes
that supports to fight with the competitors. These kinds of attributes make the inclusion of the
natural resources like inexpensive power, high-grade ores and access to skilled and highly
trained personnel human resources. New technologies like information technology and
robotics, needs to be included as the product’s part or will assist in its making. Information
6
technology is being considered as the major part of the world of modern business which will
make a contribution to the competitive advantage by outperforming competitors in regards to
the presence of internet. From the very starting, the central problem regarding the
transmission of the information leads to the rise of middlemen in a market is the important
factor in having a competitive advantage. By making use of the internet as a middleman, a
supplier of information to end consumer, competitive advantage can be gained by the
business by developing an effective website, which in the past will have requirement of the
effort to find a rightmiddleman (Noussair, et. al., 2013).
Reason to have a competitive advantage
A competitive advantage in the marketplace is being considered as the distinguishing factor
that supports in driving profits of the company. Maintaining and building of competitive
advantage attracts many customers, generates loyalty and makes a contributionto the fair
prices. Competitive advantage must be gained by countries and industries for the various
reasons which can be defined as follows:
An industry or a country can have a competitive advantage through differentiation or
low price. While low prices support in attracting a high percentage of the target
market, only a single organisation in an industry will get success with the profitable
low price strategy. Associations must come up with the strategy of differentiation in
their services and products. These differentiation points cause discerning buyers to
make payment of money for the effective overall solution (Shenkar, et. al. 2014).
Competitive advantage presents the business to get engaged in an expensive and
arbitrary battle for customers. If the clarification cannot be given to the customers
regarding the superiority of brand, revenue will be left by chance. A customer having
options of 10 brands will be having no reason to purchase yours. When an excellence
will be established in the quality of the product, business will support customer to
make recognition of superior value. Fans of the Apple technology will require cutting
edge and innovative solutions (Dunning, 2013).
Competitive advantage will help in attracting customers again and again. Eventually,
repetition of customers makes the development of a loyal relationship when they will
be having continuous positive experience. This kind of loyalty will not just give
strength to the potentials of revenue with those customers but they will also give a
recommendation of the company to their friends who will require similar benefits.
7
make a contribution to the competitive advantage by outperforming competitors in regards to
the presence of internet. From the very starting, the central problem regarding the
transmission of the information leads to the rise of middlemen in a market is the important
factor in having a competitive advantage. By making use of the internet as a middleman, a
supplier of information to end consumer, competitive advantage can be gained by the
business by developing an effective website, which in the past will have requirement of the
effort to find a rightmiddleman (Noussair, et. al., 2013).
Reason to have a competitive advantage
A competitive advantage in the marketplace is being considered as the distinguishing factor
that supports in driving profits of the company. Maintaining and building of competitive
advantage attracts many customers, generates loyalty and makes a contributionto the fair
prices. Competitive advantage must be gained by countries and industries for the various
reasons which can be defined as follows:
An industry or a country can have a competitive advantage through differentiation or
low price. While low prices support in attracting a high percentage of the target
market, only a single organisation in an industry will get success with the profitable
low price strategy. Associations must come up with the strategy of differentiation in
their services and products. These differentiation points cause discerning buyers to
make payment of money for the effective overall solution (Shenkar, et. al. 2014).
Competitive advantage presents the business to get engaged in an expensive and
arbitrary battle for customers. If the clarification cannot be given to the customers
regarding the superiority of brand, revenue will be left by chance. A customer having
options of 10 brands will be having no reason to purchase yours. When an excellence
will be established in the quality of the product, business will support customer to
make recognition of superior value. Fans of the Apple technology will require cutting
edge and innovative solutions (Dunning, 2013).
Competitive advantage will help in attracting customers again and again. Eventually,
repetition of customers makes the development of a loyal relationship when they will
be having continuous positive experience. This kind of loyalty will not just give
strength to the potentials of revenue with those customers but they will also give a
recommendation of the company to their friends who will require similar benefits.
7
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When there will be sustainable and clear competitive advantage, the company will
gain benefit with regards to the economies of scale. You do not have to make an
investment in the development of short-term advantages to attract customers. A
sustainable advantage will become the cash cow of the company (Urbancova, 2013).
Competitive advantage supports in making the generation of the return on capital and will
link the strategy of the business with the capital market and finance for the long time period.
Without this kind of advantage, the firm will be having a limited economic reason for the
existence; their competitive advantage will be the reason for their existence. Without this,
there will be a declination of the firm. Development of the sustainable competitive advantage
will be a significant goal for any industry and will also be the significant single attribute
where each firm must have focus (Neary, 2016).
In context with countries
Comparative advantage is the advantages which arise is when the nation generates the
services or goods for lower opportunity price as compared to the othernations. The
Opportunity cost is considered to be the measures of generating the trade-off. A country with
comparative advantage creates the trade-off value it. The advantage of purchasing their
service or goods overshadows the drawbacks. The nation might not be the finest at
manufacturing something. But the service or good is having the low opportunity cost for
other nations to import. The comparative advantages are important to maintain international
trade and to generate economic advantages for the home-based nations. The prime principle
or law of comparative advantage embraces that in the circumstances of free trade, the agent
will create more of and consume not as much of a good for which they are having a
comparative benefit (Rugman&Verbeke, 2017)
For illustration, oil-producing countries are having the comparative benefits in chemicals.
Their home based-produced oil offers an inexpensive source of substance for chemicals when
compared with the nations who are not producing it. There are different raw materials which
are mainly manufactured in an oil distillery procedure. As a consequence, Kuwait, Mexico
and Saudi Arabia are competitive with the U.S. Chemical manufacturing businesses.
Their chemicals are low-cost, constructing their opportunity cost to be low (Kirchmer, 2012).
Another specimen is of the Indian call centres. U.S. businesses purchase this service as it is
inexpensive than localizing call centre in America. The call centres which are in India are
8
gain benefit with regards to the economies of scale. You do not have to make an
investment in the development of short-term advantages to attract customers. A
sustainable advantage will become the cash cow of the company (Urbancova, 2013).
Competitive advantage supports in making the generation of the return on capital and will
link the strategy of the business with the capital market and finance for the long time period.
Without this kind of advantage, the firm will be having a limited economic reason for the
existence; their competitive advantage will be the reason for their existence. Without this,
there will be a declination of the firm. Development of the sustainable competitive advantage
will be a significant goal for any industry and will also be the significant single attribute
where each firm must have focus (Neary, 2016).
In context with countries
Comparative advantage is the advantages which arise is when the nation generates the
services or goods for lower opportunity price as compared to the othernations. The
Opportunity cost is considered to be the measures of generating the trade-off. A country with
comparative advantage creates the trade-off value it. The advantage of purchasing their
service or goods overshadows the drawbacks. The nation might not be the finest at
manufacturing something. But the service or good is having the low opportunity cost for
other nations to import. The comparative advantages are important to maintain international
trade and to generate economic advantages for the home-based nations. The prime principle
or law of comparative advantage embraces that in the circumstances of free trade, the agent
will create more of and consume not as much of a good for which they are having a
comparative benefit (Rugman&Verbeke, 2017)
For illustration, oil-producing countries are having the comparative benefits in chemicals.
Their home based-produced oil offers an inexpensive source of substance for chemicals when
compared with the nations who are not producing it. There are different raw materials which
are mainly manufactured in an oil distillery procedure. As a consequence, Kuwait, Mexico
and Saudi Arabia are competitive with the U.S. Chemical manufacturing businesses.
Their chemicals are low-cost, constructing their opportunity cost to be low (Kirchmer, 2012).
Another specimen is of the Indian call centres. U.S. businesses purchase this service as it is
inexpensive than localizing call centre in America. The call centres which are in India are
8
not superior to the call centres which are in the U.S. Their employees do not always
communicate in English in a very clear manner. But they offer the service reasonably
sufficient to create a worthy trade-off
In the previous years, the comparative benefits arise relatively more in the goods and almost
negligible in the services, this is because the products are easy to export. With the invention
and greater use of internet in the telecommunications, the services are also exported by the
nations. The services which are having comparative benefits mainly consist of banking, call
centre and entertainments (Albrecht, et. al. 2015).
Another example is of America, One of the comparative benefits of America is its massive
land which is surrounded by 2 oceans. America is having lost of arable land, available oil
and fresh water. The businesses which are runner and managed in the US are benefited from
these inexpensive natural resources and get a safety from land attack. Most significant, it is
having a varied population with domestic laws and a common language. The varied
population delivers a wide-ranging test marketplace for fresh products. It assisted the United
States to outshine at creating purchaser products. Multiplicity in population also assisted the
United States to be an international leader in defence equipment, banking, technology and
aerospace. Silicon Valley ties together the supremacy of diversity to turn out to be the leader
in pioneering thinking. Those collective benefits formed the supremacy of the U.S. economy
(Dodgson, 2018).
In context with Industries
Competitive advantage gives a high amount of benefit to different kinds of industries in the
context of global trade. In order to understand the advantage of the competitive advantage, an
example of two industries will be taken i.e. service industry and the insurance industry. These
are the most developing and profit-making industries having global trade and it is very
necessary for them to have a competitive advantage to maintain position in the market.
Service Industry is being considered as the most dynamic factor in the developed and
advanced economy. There are many managers who acknowledge the significance of the
distinct service attributes in regards to the success of the business but many of them are vague
in relation with key competitive advantage and key success factors. By making a proper
identification of the major success factors, the industry will become more creative and
adaptive and can even be a leader in the market which will make stimulation in regards
9
communicate in English in a very clear manner. But they offer the service reasonably
sufficient to create a worthy trade-off
In the previous years, the comparative benefits arise relatively more in the goods and almost
negligible in the services, this is because the products are easy to export. With the invention
and greater use of internet in the telecommunications, the services are also exported by the
nations. The services which are having comparative benefits mainly consist of banking, call
centre and entertainments (Albrecht, et. al. 2015).
Another example is of America, One of the comparative benefits of America is its massive
land which is surrounded by 2 oceans. America is having lost of arable land, available oil
and fresh water. The businesses which are runner and managed in the US are benefited from
these inexpensive natural resources and get a safety from land attack. Most significant, it is
having a varied population with domestic laws and a common language. The varied
population delivers a wide-ranging test marketplace for fresh products. It assisted the United
States to outshine at creating purchaser products. Multiplicity in population also assisted the
United States to be an international leader in defence equipment, banking, technology and
aerospace. Silicon Valley ties together the supremacy of diversity to turn out to be the leader
in pioneering thinking. Those collective benefits formed the supremacy of the U.S. economy
(Dodgson, 2018).
In context with Industries
Competitive advantage gives a high amount of benefit to different kinds of industries in the
context of global trade. In order to understand the advantage of the competitive advantage, an
example of two industries will be taken i.e. service industry and the insurance industry. These
are the most developing and profit-making industries having global trade and it is very
necessary for them to have a competitive advantage to maintain position in the market.
Service Industry is being considered as the most dynamic factor in the developed and
advanced economy. There are many managers who acknowledge the significance of the
distinct service attributes in regards to the success of the business but many of them are vague
in relation with key competitive advantage and key success factors. By making a proper
identification of the major success factors, the industry will become more creative and
adaptive and can even be a leader in the market which will make stimulation in regards
9
tochanges in the market. For the purpose of achieving this, it is important to talk in relation
with the innovation, integral solution and explicit service quality. Also management of
human resource, organisation and culture are some of the issues which must be discussed in
the process of delivery and also from the perspective of customers. The significance of
entrepreneurship, learning and motivation must not be ignored but the main factor in success
in the service industry is a client (Rugman and Verbeke, 2017).
At the time of having a study of the competitive advantage, it will be beneficial to make a
choice of the company in an industry which is there in the middle of a shift. The pattern of
the market opportunities and competition is changing in the insurance industry in Europe
forthe last many years. This is generally because of the deregulations which are forcing
companies of insurance to reposition them in the market and to make an adjustment of
internal structure. In addition to the deregulation, general economic and technological
changes from the several years are creating pressure in regards with the restructuring.
Because of these factors, the actual industry is in the middle of a shift. Before the
implementation of the deregulation, insurance firms were under the worst managed
organisations. There was limited competition arising from the high amount of regulation as
an important reason for it (Albrecht, et. al. 2015).
Facts and figures
Figure 1: Factors supported in competitive advantage
10
with the innovation, integral solution and explicit service quality. Also management of
human resource, organisation and culture are some of the issues which must be discussed in
the process of delivery and also from the perspective of customers. The significance of
entrepreneurship, learning and motivation must not be ignored but the main factor in success
in the service industry is a client (Rugman and Verbeke, 2017).
At the time of having a study of the competitive advantage, it will be beneficial to make a
choice of the company in an industry which is there in the middle of a shift. The pattern of
the market opportunities and competition is changing in the insurance industry in Europe
forthe last many years. This is generally because of the deregulations which are forcing
companies of insurance to reposition them in the market and to make an adjustment of
internal structure. In addition to the deregulation, general economic and technological
changes from the several years are creating pressure in regards with the restructuring.
Because of these factors, the actual industry is in the middle of a shift. Before the
implementation of the deregulation, insurance firms were under the worst managed
organisations. There was limited competition arising from the high amount of regulation as
an important reason for it (Albrecht, et. al. 2015).
Facts and figures
Figure 1: Factors supported in competitive advantage
10
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Source: Marta Mackiewicz and Richter, (2015).
The above-presented picture makes the description of various facts as well as figures that
supported countries and industries to have a competitive advantage. It shows that electronic
components and different forms of digitalisation support in gaining competitive advantage.
With the support of the digitalisation and internet, various benefits can be achieved by the
countries and companies in the modern world.
Figure 2: Support of competitive advantage in value creation
Source: Quora, 2016.
From the above-presented figure, it can be analysed that competitive advantage has given
highest benefit to the finance industry as it supported in the development of networking as
well as a business model that has given support to the finance companies to make a global
presence.
11
The above-presented picture makes the description of various facts as well as figures that
supported countries and industries to have a competitive advantage. It shows that electronic
components and different forms of digitalisation support in gaining competitive advantage.
With the support of the digitalisation and internet, various benefits can be achieved by the
countries and companies in the modern world.
Figure 2: Support of competitive advantage in value creation
Source: Quora, 2016.
From the above-presented figure, it can be analysed that competitive advantage has given
highest benefit to the finance industry as it supported in the development of networking as
well as a business model that has given support to the finance companies to make a global
presence.
11
Conclusion
From the above-presented report, it can be concluded that concept of competitive advantage
is very beneficial as it supported well to both countries as well as companies to make
international trade and operations in an effective and efficient manner. Competitive
advantage supports in addressing various criticism in regards to the comparative advantage. It
can be said that the country is having a comparative advantage if the production of a good for
example cloth can be produced at a low cost of opportunity in comparison with another
nation. The opportunity cost in relation to the production of cloth is being considered as the
amount of wine that must be provided in order to make the production of one more cloth unit.
The above-presented study clears the concept of the competitive advantage in the mind of
learner’s form which it can be said that it is very necessary for the industries and countries to
have a competitiveadvantage for the effective development and growth in the market full of
competition.
Competitive advantage is being discussed here in regards to the countries and companies so
as to have proper understanding. From the presented facts and figures, it can be said that the
main reason to have a competitive advantage is with the support of technology and
digitalisation. These things are giving good support to the companies in gaining development
and profit and also helping to have an international presence.
12
From the above-presented report, it can be concluded that concept of competitive advantage
is very beneficial as it supported well to both countries as well as companies to make
international trade and operations in an effective and efficient manner. Competitive
advantage supports in addressing various criticism in regards to the comparative advantage. It
can be said that the country is having a comparative advantage if the production of a good for
example cloth can be produced at a low cost of opportunity in comparison with another
nation. The opportunity cost in relation to the production of cloth is being considered as the
amount of wine that must be provided in order to make the production of one more cloth unit.
The above-presented study clears the concept of the competitive advantage in the mind of
learner’s form which it can be said that it is very necessary for the industries and countries to
have a competitiveadvantage for the effective development and growth in the market full of
competition.
Competitive advantage is being discussed here in regards to the countries and companies so
as to have proper understanding. From the presented facts and figures, it can be said that the
main reason to have a competitive advantage is with the support of technology and
digitalisation. These things are giving good support to the companies in gaining development
and profit and also helping to have an international presence.
12
References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015).
Employee engagement, human resource management practices and competitive
advantage: An integrated approach. Journal of Organizational Effectiveness: People and
Performance, 2(1), 7-35.
Dodgson, M. (2018). Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Dunning, J. H. (2013). Multinationals, Technology & Competitiveness (RLE
International Business). Routledge.
Kirchmer, M. (2012). Business process oriented implementation of standard software:
how to achieve competitive advantage efficiently and effectively. Springer Science &
Business Media.
Marta Mackiewicz, W. E. R. I., & Richter, S. (2015). D6. 1| Literature Review and
Data Collection.
Meihami, B., &Meihami, H. (2014). Knowledge Management a way to gain a
competitive advantage in firms (evidence of manufacturing companies). International
letters of social and humanistic sciences, 3, 80-91.
Neary, J. P. (2016). International trade in general oligopolistic equilibrium. Review of
International Economics, 24(4), 669-698.
Noussair, C. N., Plott, C. R., &Riezman, R. G. (2013). An experimental investigation
of the patterns of international trade. In International Trade Agreements and Political
Economy (pp. 299-328).
Quora, 2016. Value Creation. [Online]. Quora. Available at:
https://www.quora.com/What-are-the-best-examples-of-competitive-advantage-that-
derives-from-factors-besides-product-features. [Accessed on 3 August 2018].
Reed, R., Storrud-Barnes, S., & Jessup, L. (2012). How open innovation affects the
drivers of competitive advantage: Trading the benefits of IP creation and ownership for
free invention. Management Decision, 50(1), 58-73.
Rugman, A., &Verbeke, A. (2017). Global corporate strategy and trade policy.
Routledge.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business
management. Pearson.
13
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015).
Employee engagement, human resource management practices and competitive
advantage: An integrated approach. Journal of Organizational Effectiveness: People and
Performance, 2(1), 7-35.
Dodgson, M. (2018). Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Dunning, J. H. (2013). Multinationals, Technology & Competitiveness (RLE
International Business). Routledge.
Kirchmer, M. (2012). Business process oriented implementation of standard software:
how to achieve competitive advantage efficiently and effectively. Springer Science &
Business Media.
Marta Mackiewicz, W. E. R. I., & Richter, S. (2015). D6. 1| Literature Review and
Data Collection.
Meihami, B., &Meihami, H. (2014). Knowledge Management a way to gain a
competitive advantage in firms (evidence of manufacturing companies). International
letters of social and humanistic sciences, 3, 80-91.
Neary, J. P. (2016). International trade in general oligopolistic equilibrium. Review of
International Economics, 24(4), 669-698.
Noussair, C. N., Plott, C. R., &Riezman, R. G. (2013). An experimental investigation
of the patterns of international trade. In International Trade Agreements and Political
Economy (pp. 299-328).
Quora, 2016. Value Creation. [Online]. Quora. Available at:
https://www.quora.com/What-are-the-best-examples-of-competitive-advantage-that-
derives-from-factors-besides-product-features. [Accessed on 3 August 2018].
Reed, R., Storrud-Barnes, S., & Jessup, L. (2012). How open innovation affects the
drivers of competitive advantage: Trading the benefits of IP creation and ownership for
free invention. Management Decision, 50(1), 58-73.
Rugman, A., &Verbeke, A. (2017). Global corporate strategy and trade policy.
Routledge.
Scarborough, N. M. (2016). Essentials of entrepreneurship and small business
management. Pearson.
13
Paraphrase This Document
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Shenkar, O., Luo, Y., & Chi, T. (2014). International business. Routledge.
Urbancova, H. (2013). Competitive advantage achievement through innovation and
knowledge. Journal of Competitiveness, 5(1).
14
Urbancova, H. (2013). Competitive advantage achievement through innovation and
knowledge. Journal of Competitiveness, 5(1).
14
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