Faculty: Mehree Iqbal (Mei)

Course: INB 410

Section: 3
Subject: Case Study Analysis
Group: 6
Group members:

Name

ID

Rafi Islam

1210770030

Najiur Rahman Shojol

1210096030

MD. Shahrear Shifat

1210072030

Omar Farukh

1210010030

Munshi Neemal Ehsan

1210066030

Faizul Alam

1210283030

Competitive advantage of Germany

Germany has absolute advantage in innovation. The countrys industries capacity to innovate
and upgrade is high, which is why the manufacturing companies are now thriving.
Germany has a stable governing body known as Fraunhofer Society which is a network
of public institutions that help companies recombine and improve ideas. The evolution of
Germany's assets, both human and capital resources, provided the pathway to pre-eminence
in the engineering, chemical production, machinery, banking, and automotive industries.
The management practices shared among all the companies in Germany is favourable for the
economy of the country. The norm of their corporate culture is to infuse old products and
processes with new ideas and capabilities or recombining elements of old, stagnant sectors
into new, vibrant ones. This norm has helped the country to sustain its employment growth
and productivity while expanding citizens real incomes. Furthermore, the workers in the
companies are regularly trained to keep up with the innovation and have motivated work
force. Thus these strategies have resulted in successful global brands such as: Miele, Bosch,
BMW, and Audi.
Competitive advantage of United States
America has absolute advantage on invention. The countrys industries capacity to innovate
and upgrade is low, whereas for invention it is high. Clear evidences are the sophisticated
system of financing radical ideas such as: Google, Apple, Facebook, Twitter, Amazon, etc.

U.S. does not have any stable governing body for innovation of inventions. Thus U.S. suffers
as it is easy to achieve competitive advantage, but it is difficult sustaining it.
Management practices shared among the companies of U.S. are unfavourable and do not
consider the consequences on the economy of the country. All the companies focus on
technologies that reduce or eliminate the need to hire workers. Thus this practice does not
sustain employment growth and productivity and this has resulted in the countrys balance of
payment to get worse.
Differences
Management practices widely differ between Germany and U.S. Germany innovate in a way
so that it leads to economic growth and sustains employment and regularly trains its
employees. On the other hand U.S. look for those technological innovations which will
replace humans and this does not help in sustaining employment and thus do not lead to
economic growth. U.S. has succeeded with its sophisticated appearance innovation but the
firms failed to innovate it and sustain the invention.
U.S. is good at inventing and Germany is good at innovation. Thus U.S. firms can form joint
ventures with German firms to gain competitive advantage together in the technology sector.
U.S. has that pressure, necessity and adversity to innovate. Thus forming this joint venture
will allow free flow of information between the countries and this will lead to a positive sum
game as following this strategy will benefit both countries including its population and
economy.