The Porters analyses discuss the impact of national conditions on firms international competitive advantage and are based on three principles: 1. The competitive performance of a country and the performance of the firms are interrelated as a countrys success depends on the firms performance and the performance of the firms depends on the on the nations environment; 2. For a country to sustain its competitive advantage its firms must maintain its competitive advantage through constant innovations and development of resources and capabilities. 3. Dynamic conditions of national environment are of the major impact on firms ability to innovate and develop.
The four determinants of competitive advantage include: Factor conditions : The economy's position in factors of production such as skilled labour, physical resources, capital or infrastructure necessary to compete in a given industry. Demand conditions : The nature of the local demand for the industry's product or service. Firm Strategy, structure and rivalry conditions : The conditions in the economy governing how companies are created, organized, and managed and the nature of domestic rivalry. Related and supporting Industries: The presence or absence in the economy of supplier industries and related industries that is highly competitive. Two factors influence the development of these determinants: Chance : Acknowledging the extent to which an industrys competitiveness is related to its historical path of development; Government: The ability of government is to manage the determinants of advantage to the benefit of their basic industries.
Cost Leadership:
Toyota has achieved low-cost leadership status because it has developed considerable skills in efficient supply chain management and low-cost assembly capabilities and because its models are so well-positioned in the low-to-medium end of the price spectrum. These are enhanced by Toyotas strong emphasis on quality.
Bargain Brands:
Brand is created by the support of peoples expectations and appreciation. Toyota is facing problems because local suppliers from china are providing cars at very low price, it attracts the customer because they want low price rate.
Brands:
Porsche Ferrari BMW Audi Mercedes Ford Hyundai Honda Toyota Suzuki Chevrolet Daihatsu Other China Brands
POSITIONING MAP
Hyundai
Audi
Suzuki