PP近重点考题分析 of Dec Q—— Mike.pdfVIP

P3 P3 of Dec 2004 Q2.1—— Mike P3 P3 of Dec 2004 Q2.1—— Mike 【PP33】PP33近年重点考题分析 ooff DDeeccQQ22..11———— MMiikkee Introduction Porterdiamondidentifies4inherentreasonsforcompetitiveadvantagesofanindustrywithin a country on global basis. Porter suggests that some industries have home bases of competitive advantage within a country which play an important role in creating advantage on global scale Factor conditions Factor conditions include basic factors and advanced factors, different country has different factor conditions. Basicfactorsarethresholdresourcessuchasnaturalresources,climate,availabilityofcheap labor and so on, it does not create competitive advantage but the absence of basic factors providesstimulustostruggleforuniqueadvancedfactors,suchaseducationlevel,innovative technology and datacommunication infrastructure, which build up core competence. The Asian country should have cheap labor which is attractive to OEMs, but it seems lack of advanced factor such as innovative technology, the government should increase investment in education and technology innovation Demanding situation Tough demanding situation in the shape of customer encourages firms be conscious of those needs and try to meet the requirements through innovative and high quality product, it provides impetus for organization to gain global competence. If demanding situation harmonize with organizational competence, it will be favorably attractive. As an emerging market, it’s deducible that the demanding situation in Asia is not stringent which will attract OEM competing on the base of low cost. Supporting and related industries No single organization can undertake full range of activities of a supply chain, OEM may focus on core activities while outsourcing considerable activities which are not critical. Without supporting and related industries, OEMs