Topic 2 :National Competitiveness in

Global Strategy

a) Determinants of national advantage

b) International branding
c) Competitive advantage and needs satisfaction
d) Winners and global organisations
e) Major changes in balance of activities and wealth
f) The 12 pillars of competitiveness
g) Other sources of global information

@ Thoralf Dassler
International Branding
•Brands usually develop in the
national market and when
established move abroad
•Political influence is important
here
•During/post WW2 great troop
movement lead to initial spread of
US brands (can you name
some?)
•Product-country associations
•Colours, patterns and images
are now complex
Competitive advantage
Ohmae
•The Mind of the strategist
•Triangular model
•Seek strategic advantage –
dynamic
•A mind set for all (SMT and
managers etc.)
•Constant questioning for a
better strategic action
Exercise :National Competitive Advantage
 Top 20 (50) Companies in FT 500 by Country
COUNTRY Mar 2008(20) Mar Mar 2007(20) Mar 2007(50) Dec 2003 (20) Dec 2003 (50)
2008(50)

United States of America 9 21 13 24 14 32

China and Hong Kong 4 7 2 5

Russia 1 1 1 1

United Kingdom 3 5 3 6 4 6

Brazil 1 2 1

Switzerland 1 3 4 3

France 1 3 3 1

Netherlands/UK 1 1

Japan 1 1 2 1 3

Germany 1 1

Spain 2 2 1

Australia/UK 2 1

Italy 1 1 1

Finland 1 1

TOTAL 20 50 20 50 20 50
e.g. Top 14 groups by Industry Sector in FT 500
Industry sector Mar 2008(20) Mar 2008(50) Mar 2007(20) Mar 2007(50) Dec 2003 (20) Dec 2003 (50)

Oil & Gas 8 11 4 9 3 6

Banks 3 7 4 13 2 7

Pharmaceuticals & biotechnology 1 5 2 6 3 8

Fixed line telecommunications 1 2 1 3

Mobile telecommunications 1 2 1 2

Telecommunications (pre split) 1 7

Non life Insurance 1 2 2 2 2 2

Software and computer services 1 2 1 2 2 2

General retailers 1 1 1 1 1 3

Household goods and home construction 1 1 1 1 1 1

General Industrials 1 1 1 1 1 2

Food producers 1 1 1 1

IT technical hardware & equipment 5 3 2 4

Mining 3 1

TOTAL 20 43 18 45 18 43
Global Competitiveness (WEF Report)
•The World Economic Forum
since 2005 has based its •Take a look at the latest report
competitive analysis on the
on the internet
Global Competitive Index
•Are the pillar label’s thoroughly
•A comprehensive tool measuring
defined?
micro and macro foundations of
global competitiveness •Check out the profile of the
country of your choice
•“We define competitiveness as
the set of institutions, policies and •Are their any limitations to the
factors that determine the level of report?
productivity of a country”
(WEF,2012)
The Twelve Pillars of Competitiveness
•Pillar 1: Institutions •Pillar 7:Labour market efficiency
•Pillar 2: Infrastructure •Pillar 8:Financial market
•Pillar 3: Macroeconomic development
environment •Pillar 9:Technological readiness
•Pillar 4: Health and primary •Pillar 10: Market size
education •Pillar 11:Business
•Pillar 5: HE and training Sophistication
•Pillar 6: Goods market efficiency •Pillar 12: Innovation
Other Sources of global business information e.g.
Deloitte’s Global Report (2013)

• Other sources of information

• The Big 4 accounting organisations undertake periodic
and industry specific reports
• See www.deloitte.com for their global impact and
various other reports
• Read about the key 8 features and reflect upon their
impact on doing global business