The Competitive Advantage of Nations by Michael E. Porter

Product Description

Now beyond its 11th printing and translated into twelve languages, Michael Porter's The Competitive Advantage of Nations has changed completely our conception of how prosperity is created and sustained in the modern global economy. Porter's groundbreaking study of international competitiveness has shaped national policy in countries around the world. It has also transformed thinking and action in states, cities, companies, and even entire regions such as Central America.

Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter's "diamond," a whole new way to understand the competitive position of a nation (or other locations) in global competition that is now an integral part of international business thinking. Porter's concept of "clusters," or groups of interconnected firms, suppliers, related industries, and institutions that arise in particular locations, has become a new way for companies and governments to think about economies, assess the competitive advantage of locations, and set public policy.

Even before publication of the book, Porter's theory had guided national reassessments in New Zealand and elsewhere. His ideas and personal involvement have shaped strategy in countries as diverse as the Netherlands, Portugal, Taiwan, Costa Rica, and India, and regions such as Massachusetts, California, and the Basque country. Hundreds of cluster initiatives have flourished throughout the world. In an era of intensifying global competition, this pathbreaking book on the new wealth of nations has become the standard by which all future work must be measured.
Product Details
Amazon Sales Rank: #73815 in Books
Published on: 1998-06-01
Number of items: 1
Binding: Hardcover
896 pages
Editorial Reviews

From Publishers Weekly
Harvard economist Porter suggests that it is no accident that Japan leads in exporting electronics and computer-controlled machinery, Italy in fabrics and home furnishings, and the U.S. in software, medical equipment and movies. In each of the 10 countries that he and his international research team investigated, clusters of firms gained a global competitive edge by capitalizing on innovation, raising productivity, and drawing on unique elements of their country's history and character. Porter, who served on Reagan's Commission on Industrial Competitiveness, sees government's proper role as pusher and challenger, rather than as giver of subsidies to protect industries. Stressing renewed effort and competition as keys to gaining global advantage, he questions regulations that would limit competition and recommends enforcement of U.S. antitrust laws to end monopolistic mergers. This massive, impressive, salient tome is structured so that business executives, economists, policymakers and ordinary readers can turn to the sections most relevant to their needs. 50,000 first printing; first serial to Fortune.
Copyright 1990 Reed Business Information, Inc.

From Library Journal
Building on his Competitive Strategy ( LJ 10/1/80) and Competitive Advantage ( LJ 3/1/86), which dealt with competition among companies, Porter here presents a new theory to explain global success. He identifies the fundamental determinants of national competitive advantage in an industry, shows how they work together as a system, and examines "clustering," in which groups of successful firms and industries emerge in one country to gain leading positions in the world market. This important work, based upon research conducted in ten nations, provides important data for both companies and governments. Highly recommended for academic, corporate, and large public libraries.
- Leonard Grundt, Nassau Community Coll. Lib., Garden City, N.Y.
Copyright 1990 Reed Business Information, Inc.

Review
Business WeekRich in lessons about why and how industries, regions, and nations succeed or fail.

The EconomistAn all-embracing view of economic change that amounts in the end to a powerful analytic framework. Porter has done for international capitalism what Marx did for the class struggle....A real achievement.

Administrative Science QuarterlyShould have a profound and far-reaching impact on academic course work, managers' perceptions, and public policy.

Business in a Contemporary WorldThe Competitive Advantage of Nations is destined to become a classic in its field.

Journal of Development EconomicsThe first serious attempt to develop a really original grand theory of national economic development processes since the early years of Postwar development economics, and one of the most original ways of thinking about development policy in years.

Publishers WeeklyThis massive, impressive, salient tome is structured so that business executives, economists, policy-makers and ordinary readers can turn to the sections most relevant to their needs.
Customer Reviews

Great writting
Recently pick up the book by lecturer recommendation, although its dry & boring with huge massive information but open up my mind and keep question the assumption in today market.

A Classic

"The Competitive Advantage of Nations" gives insights into why and how industries, regions, nations or some social groups thrive or fall short. The book explains and presents the theory on the sources of sustained prosperity in the contemporary worldwide economy. This seminal work has assisted countries to develop national policy based on their international competitiveness.

Porter methodically and systematically discusses why some nations achieve continual economic prosperity. He explains the roles of governments and companies in economic development. The author shows the distinction between competitive advantage as a source of wealth and the concept of comparative advantage which had been until recent years the paradigm on thinking about international competition.

Porter based his research in 10 leading trading nations. The book introduced the author's "diamond" which is a new way of looking and comprehending the competitive advantage of a nation. His concept of "clusters" or groups of interconnected firms, suppliers, related industries and institutions in certain locations opened a unique way for organizations and governments to look at economies and assess the competitive advantage of locations and set public policy.

This weighty tome is recommended reading for entrepreneurs, business executives, policy makers, economists and other readers who are interested in ensuring that companies can successfully face the future based on pragmatic assessment of how the firm can gain competitive advantage.

Strategy - It's a matter of life and death
As an active Business Consultant I'm often appalled at the lack of disregard for the importance of strategy. It's a matter of life and death (at least for your company).

"Vision without action is a daydream. Action without vision is a nightmare." - Japanese proverb

Why read a book on strategy? Quite simply, to be successful. Technology and globalization culminated in ferocious competition for virtually all industries. To be competitive in today's world, you must understand that all value is derived from the customer. Therefore, you will do well to delve deep into how to create value for the customer.

Competition is becoming increasingly global. Therefore, it is in your best interest to understand how national, international, and governmental issues affect your industry and hence, your company.

Third in Porter's landmark trilogy, Competitive Advantage of Nations, somewhat different from his first two books, focuses less on industries and companies themselves, and more on how a firm actually gains an advantage over its rivals.

Competitive Advantage of Nations consists of four parts:

Part I - Foundations, presents the theoretical frameworks which form the basis for the rest of the book. In Chapters 2, 3 and 4 Porter revisits most of his previous work, such as the five competitive forces, generic strategies, the value chain, and the advantages "diamond".

Part II - Industries, frameworks of Part I are applied to explain the histories of four industries (German printing press, American patient monitoring equipment, Italian ceramic tiles, and Japanese robotics). In addition, Porter applies the frameworks to the service sector.

Part III - Nations, frameworks of Part I are applied to ten nations. Porter splits these ten nations up in early post-war winners, emerging nations in the 1970s and 1980s, and the traditional business countries (Britain and USA).

Part IV - Implications, Porter discusses the impact of the frameworks of Part I on company's strategies and government policies. In the final chapter Porter tries to answer the question, "What of the future?" According to Porter "the central economic concern of every nation should be the capacity of its economy to upgrade so that firms achieve more sophisticated competitive advantages and higher productivity. Only in this way can there be a rising standard of living and economic prosperity."


In summary, Competitive Advantage is a must read for any Aspiring Entrepreneur. To lead your company into the future you must create and capture value. Reading this book will help you better understand how firms within industries gain a competitive advantage. Don't be blindsided by the comfort of the moment, prepare for the future now.

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Michael Davis, President - Brencom Strategic Business Consulting