How can I develop an effective long-term company strategy by complementing the industry comparative advantage in the target region with the firm's competitive advantage as a major widget producer?
Comparative advantage is one of very important trade theory which states that countries will specialize in producing those products, which they are comparatively better at making relative to other products and other countries. Thus it leads to specialization and economies of scale. It is important concept as this leads to improvement in efficiency and effectiveness of the nations and organizations.
Let us take the Costa Rica as an example of the location where the industry is having comparative advantage. It's because it is offering favorable business environment that is the above factors are positive: Specifically Costa Rica is giving following advantages:
Favorable Political environment
Costa Rica is known for the stable political environment. It has preferable democratic system, stable regime and transparent judicial system. All these make favorable environment for the business.
Favorable Socioeconomic environment
Costa Rica has high literacy rate, high GDP growth, and High public expenditure in health. It has very high-expected age and low infant mortality indicating sound health infrastructure in the country. It has recorded good growth in tourism and exports in the past years.
It has special economic zones where the special fiscal incentives are given to the firms manufacturing for exports. It did not have any discrimination between the foreign and national companies. It has strong copyright and antitrust laws. Foreign direct investment has also grown rapidly. Improvement in the cooperation between the neighboring countries by forming regional alliances.
Favorable Infrastructure and formation of technology cluster
It has relatively advance telecommunication system. The technology cluster in the country is giving big boost to the new technology companies to make a foray in the country.
Our Long term strategy
There are fundamental questions that all businesses must ask themselves to play a pro-active role in the competitive environment.
What to change?
When to change?
How to change?
How FAST to change?
How to ensure the capability to change?
There is a need to constantly renew their processes, their knowledge, their technology, their people, and finally, the ...
You will find the answer to this puzzling question inside...