Product Description

With the publication of his best-selling books Competitive Strategy (1980) and Competitive Advantage (1985), Michael E. Porter of the Harvard Business School established himself as the world's leading authority on competitive advantage. Now, at a time when economic performance rather than military might will be the index of national strength, Porter builds on the seminal ideas of his earlier works to explore what makes a nation's firms and industries competitive in global markets and propels a whole nation's economy. In so doing, he presents a brilliant new paradigm which, in addition to its practical applications, may well supplant the 200-year-old concept of "comparative advantage" in economic analysis of international competitiveness.

To write this important new work, Porter and his associates conducted in-country research in ten leading nations, closely studying the patterns of industry success as well as the company strategies and national policies that achieved it. The nations are Britain, Denmark, Germany, Italy, Japan, Korea, Singapore, Sweden, Switzerland, and the United States. The three leading industrial powers are included, as well as other nations intentionally varied in size, government policy toward industry, social philosophy, and geography.

Porter's research identifies the fundamental determinants of national competitive advantage in an industry, and how they work together as a system. He explains the important phenomenon of "clustering," in which related groups of successful firms and industries emerge in one nation to gain leading positions in the world market. Among the over 100 industries examined are the German chemical and printing industries, Swiss textile equipment and pharmaceuticals, Swedish mining equipment and truck manufacturing, Italian fabric and home appliances, and American computer software and movies. Building on his theory of national advantage in industries and clusters, Porter identifies the stages of competitive development through which entire national economies advance and decline.

Porter's finding are rich in implications for both firms and governments. He describes how a company can tap and extend its nation's advantages in international competition. He provides a blueprint for government policy to enhance national competitive advantage and also outlines the agendas in the years ahead for the nations studied. This is a work which will become the standard for all further discussions of global competition and the sources of the new wealth of nations.

Product Details

• Amazon Sales Rank: #475713 in Books
• Published on: 1990-05-01
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 896 pages

From Publishers Weekly
Harvard economist Porter suggests that it is no accident that Japan leads in exporting electronics and computer-controlled machinery, Italy in fabrics and home furnishings, and the U.S. in software, medical equipment and movies. In each of the 10 countries that he and his international research team investigated, clusters of firms gained a global competitive edge by capitalizing on innovation, raising productivity, and drawing on unique elements of their country's history and character. Porter, who served on Reagan's Commission on Industrial Competitiveness, sees government's proper role as pusher and challenger, rather than as giver of subsidies to protect industries. Stressing renewed effort and competition as keys to gaining global advantage, he questions regulations that would limit competition and recommends enforcement of U.S. antitrust laws to end monopolistic mergers. This massive, impressive, salient tome is structured so that business executives, economists, policymakers and ordinary readers can turn to the sections most relevant to their needs. 50,000 first printing; first serial to Fortune.
Copyright 1990 Reed Business Information, Inc.

From Library Journal
Building on his Competitive Strategy ( LJ 10/1/80) and Competitive Advantage ( LJ 3/1/86), which dealt with competition among companies, Porter here presents a new theory to explain global success. He identifies the fundamental determinants of national competitive advantage in an industry, shows how they work together as a system, and examines "clustering," in which groups of successful firms and industries emerge in one country to gain leading positions in the world market. This important work, based upon research conducted in ten nations, provides important data for both companies and governments. Highly recommended for academic, corporate, and large public libraries.
- Leonard Grundt, Nassau Community Coll. Lib., Garden City, N.Y.
Copyright 1990 Reed Business Information, Inc.

Review
Shinji Fukukawa former Vice Minister, MITI, Japan The Competitive Advantage of Nations creates a new sphere in economics: an innovative socio-economic approach that will bring fresh insights to economists and industrialists. -- Review

Customer Reviews

Reasons for success and failures of nations
Michael E. Porter is a Professor of Business Administration at Harvard Business School and a leading authority on competition and strategic management. Porter is the author of the legendary business and management books 'Competitive Strategy' (1980), and 'Competitive Advantage' (1985). I cannot start this review without a word of warning: This book is consists of 850 pages and is thus not a quick weekend-read.

In this book, the author aims to answer the question, "Why do some social groups, economic institutions, and nations advance and prosper? ... I titled the book 'The Competitive Advantage of Nations' to highlight the crucial distinction between my broader concept of competitive advantage as a source of wealth and the nation of comparative advantage which had long dominated thinking about international competition." In order to answer this question, Porter uses his traditional extensive research methods and tools to prove his point.

The book is split up in four parts: (i) foundations; (2) industries; (3) nations; and (4) implications. In Chapter 1 - The Need for a New Paradigm, the author discusses the reasons for his research: "The central question to be answered is why do firms based in particular nations achieve international success in distinct segments and industries? The search is for the decisive characteristics of a nation that allow its firms to create and sustain competitive advantage in particular fields, that is, the competitive advantage of nations."

In Part I - Foundations, the author presents the theoretical frameworks which form the basis for the rest of the book. In Chapters 2, 3 and 4 Porter revisits most of his previous work, such as the five competitive forces, generic strategies, the value chain, and the advantages "diamond". Porter makes an important notion before turning the second part of the book: "The theory can and must be applied at two levels, the industry and the nation."

In Part II - Industries, the frameworks of Part I are applied to explain the histories of four industries (German printing press, American patient monitoring equipment, Italian ceramic tiles, and Japanese robotics). In addition, Porter applies the frameworks to the service sector. This is a sector which Porter has discussed very little in his previous books. "... an increasingly important class of industries where international competition has not been widely studied."

In Part III - Nations, the frameworks of Part I are applied to ten nations. Porter splits these ten nations up in early post-war winners, emerging nations in the 1970s and 1980s, and the traditional business countries (Britain and USA). Thank God, the author discusses both successes and failures within the different countries, plus identifying the reasons behind them. He also advises which steps can be taken to improve national advantage.

In Part IV - Implications, Porter discusses the impact of the frameworks of Part I on company's strategies and government policies. In the final chapter Porter tries to answer the question, "What of the future?" According to Porter "the central economic concern of every nation should be the capacity of its economy to upgrade so that firms achieve more sophisticated competitive advantages and higher productivity. Only in this way can there be a rising standard of living and economic prosperity."

This book is an impressive piece of research and Porter gets assistance from over 30 research assistants from all around the world. The book is not a simple read due to the amount of information provided and the length of the book. For readers who have read Porter's previous masterpieces I would like to stress that this book is considerably different than his previous masterpieces. It focuses less on industries and companies themselves, but more on national, international, and governmental issues. This book shows the author's education and training (Harvard PhD in economics). Still, the book is an impressive piece of work, although not for the fainthearted.

Virtuosic analysis of national productivity and technology
Forty to fifty years ago economists and political theorists did much armwaving about what makes nations competitive. In the past 20 years tools like analysis of patents, R&D expenditures, the numbers of scientifically educated people, have provided more quantitative insight. To these tools Porter adds realistic analyses of top industries in various countries - from shoes and couture in Italy, to Silicon Valley in the U.S. He points out that the fastest growth comes when favorable factors are concentrated in centers where diverse groups - industrial, academic, sometimes government or traditional industries come together and have intense interactions. This book glitters with insights and ideas. The author is among the leading US analysists of economic performance, heading a study discipline at Harvard and working with the National Bureau of Economic Research

Good read.
Most of Michael's premises are sound; however, reality can be somewhat different.

As a CEO of a global business training company, we never go into a country or business with preconceived information, and I don't think that is what Michael is trying to accomplish with this book. I have read the other reviews, but I think the negative reviews took this book too literal.

I think Michael is trying to convey a method business owners can use to establish a template for diagramming and understanding the competitive determinants of an unfamiliar nation and those businesses within that nation.

Having worked in 15 countries on 4 continents, I realize (as does Micheal) that some of his work would be highly controversial. It is what it is... a format to help us understand how to draw our own conclusions to understand how a nation and its businesses compete. Michael's work is valuable and useful. I have used his template successfully over and over.

If you are trying to understand what creates a sustainable competitive advantage of any nation's businesses, you will find the template for developing your own ideas here.

To fully understand the reality of international life and business...you have to live it.If you are looking for a place to start...you've found it.

A very good book by an interesting management consultant. I would enjoy the opportunity to discuss some of his ideas with him. He sounds like an interesting and intelligent guy.