1、Building the Competitiveness in Nations,Define Competitiveness,Why Competitiveness? What is Competitiveness? Competitiveness Business Strategy Tools,Why is Competitiveness Emerging as the #1 Issue for Leaders?,Globalization Liberalization Privatization WTO/Regional Trade Agreements Technological Cha
2、nge Transition from Central Planning,Globalization: Victors or Victims?,Globalization is not optional Pace of change has accelerated Technology is driving change WTO setting global trade rules Financial markets lift or bring down nations Achieving competitiveness is key to security Not size of missi
3、les but speed of computers,Source: Thomas Friedman, The Lexus and the Olive Tree, 1999,Indicators of Competitiveness,How “wired” (computerized) is your country? How fast is your country? Is your country harvesting its knowledge? How much does your country weigh? Does your country dare to be open? Ho
4、w good is your country at making friends? How progressive is your countrys management? How good is your countrys brand?,Source: Thomas Friedman, The Lexus and the Olive Tree, 1999,What is Competitiveness?,Competitiveness Is NOT,Abundant Natural Resources Cheap Labor Cheaper Currency Better Governmen
5、t “Incentives”,Natural Resource Dependency Rarely Leads to Wealth,Selected Global Commodity Prices 1960-1999 (1990=100),Coconut Oil,Palm Oil,Bananas,Rubber,Cocoa,Tea,Rice,Source: World Bank Development Indicators,Trend,Copper,Textile Industry Wages,Hourly Labor Wage (U.S.$),Low cost strategies based
6、 on low cost wages provide an unsustainable competitive advantage,SOURCE: Bobbin Magazine 1999 averages,developed countries statistics are from Gherzi Textile Organization,The Productivity of Labor,SOURCE: ILO 1998 and 1997 data,ICOR Investment/Output Ratio,GDI/GDP as % of GDP Growth,Can Services be
7、 Commodities?,Basic “Sun and Sand” Low-value market segments Dependency on intermediaries (charter operators) Low Wages Persist,Define Competitiveness,Why Competitiveness? What is Competitiveness? Competitiveness Business Strategy Tools,Competitiveness Is,Sustainable Growth in Productivity Driven by
8、:,The Quality of Business Strategy and Operations MICRO Environment MACRO Environment,The New Competitiveness Paradigm,Source: Michael Porter, 1998,Microeconomic Foundations,Political, Legal, and Macroeconomic Context,Sophistication of Company Operations and Strategy,Quality of the Microeconomic Bus
9、iness Environment,Macroeconomic Initiatives,Monetary Inflation Under Control Fiscal Budget Deficits Restrained Trade Tariffs Coming Down Foreign Exchange Greater ConvertibilityButprivate investment response is not automatic!,Microeconomic Initiatives,Privatization Financial Sector Restructuring Rule
10、 of Law, Commercial Law/Judicial Recourse/Arbitration Anti-Corruption Trade and Investment Promotion Small Business Facilitation Civil Service Reform Education Reforms Workforce Development,Industrial Parks/EPZs/Knowledge Parks Labor Laws, Practices and Mediation Mechanisms Private Provision of Infr
11、astructure Standards Bureaus Telecom, IT and E-commerce Readiness Intellectual Property Rights Efficient Provision of Key Services Sector-Specific Initiatives,Micro/Macro Linkages are KEY,Source: Dr. James E. Austin, Managing in Developing Countries, 1990,Pursuing Effective Dialogue,Individual Compa
12、ny Ad-hoc Complaints Operational Level Laundry Lists Anecdotal Evidence Concessions Opposite Sides,Industry Clusters Comprehensive Vision Strategy Priorities Data and Analysis Co-Responsibility Same Side of Table,INEFFECTIVE,EFFECTIVE,Define Competitiveness,Why Competitiveness? What is Competitivene
13、ss? Competitiveness Business Strategy Tools,The Competitiveness Diamond,Source: Michael Porter,Govt,Strategy, Structure & Rivalry,The Cluster,Factors,Demand,Fairbanks 7 Opportunities,1. Improve Customer Learning 2. Explore Forward Integration 3. Innovate 4. Cooperate with Cluster 5. Understand Compe
14、titive Position 6. Avoid Over-Reliance-Basic Factors 7. Avoid Government Paternalism,SOURCE:Plowing the Sea,The Competitiveness Diamond, Michael Fairbanks Opportunities,Govt,Avoid Paternalism,Factors,Demand,Strategy, Structure & Rivalry,Know Your Relative Competitive Position Know When and When Not
15、to Forward Integrate,The Cluster,Improve Interfirm Cooperation,Avoid Overreliance on Basic Factors of Advantage,Improve Understanding of Customers Overcome Defensiveness,DEMAND,Strategy, Structure & Rivalry,The Cluster,Factors,Govt,Direct Contact with sophisticated and demanding consumers Size and s
16、egmentation of local demand Number of independent buyers The speed of growth How fast the home market gets saturated Internet savvy customers Mobile local buyers Ability to monitor and respond to trends,Examples: Italian Shoes, Israeli Fish, Bouquets,FACTORS,Strategy, Structure & Rivalry,The Cluster
17、,Demand,Govt,Examples: Honduran Textiles, DR Tourism, Sri Lanka Gems,BASIC Climate Fertile Land Location Proximity Availability of basic inputs Inexpensive Labor,ADVANCED Skilled Human Resources Knowledge resources Access to capital resources Infrastructure: availability of ports Institutions Social
18、 capital,STRATEGY,The Cluster,Factors,Demand,Govt,Examples: Uganda Coffee, DR Cigars, Sri Lanka Rubber,Protection Quality of firm level strategy Reactive vs. Proactive Hi-end vs. low-end Price vs. Differentiation Distribution channels E-commerce Number of competing firms Commodities vs. Specialized
19、products,Company and strategies The quality of sustained commitment of capital and resources Industry cooperation The level of domestic rivalry Possibility of new business formation The nature of dialogue with labor Fairness of local competition Parastatals and monopolies Leadership characteristics,
20、CLUSTER,Competitive and high quality supplier? Financial sector? Business services? Strong business associations? Strong ties with research institutions? Quality of private-public dialogue Quality of education and training providers,Strategy, Structure & Rivalry,Factors,Demand,Govt,Examples: Mongoli
21、an Cashmere, Leather, Sri Lanka Tea,New York Financial Services Advertising Publishing,Silicon Valley Microelectronics Venture Capital,Rochester Imaging Equipment,Hartford Insurance,Los Angeles Area Defense Aerospace Entertainment,Wichita Light Aircraft,Dallas/ Houston Real Estate Development,Baton
22、Rouge/ New Orleans Specialty Foods,Texas/ Louisiana Chemicals,Nashville/ Louisville Hospital Management,Wisconsin/ Iowa / Illinois Agricultural Equipment,Detroit Auto Equipment and parts,Warsaw, Indiana Orthopedic Devices,Dalton, Georgia Carpets,South Florida Health Technology Computers,North Caroli
23、na Household Furniture Synthetic Fibers Hosiery,West Michigan Office Furniture,Western Massachusetts Polymers,Providence Jewelry,Boston Biotechnology Minicomputers Mutual Funds Health Care Venture Capital Software Telecommunications,Pennsylvania/ New Jersey Pharmaceuticals,Omaha Telemarketing Hotel
24、Reservations Credit Card Processing,Selected Regional Clusters of Competitive Industries,USAID E & E Bureau National Competitiveness-Building Process,Croatia, Romania, Macedonia, Bulgaria and Albania Initial Presentations Competitiveness Workshops Cluster Studies Final Presentations,Initial Presenta
25、tion,Present to Leadership Groups Work with Industry Clusters Test Relevance and Receptivity Identify Local Champions Utilize Media Incorporate Universities,Eastern Europe GNP Growth 1998,Gross Domestic Investment (% of GDP),Foreign Direct Investment per Capita,Where is Croatia on the Map of Competi
26、tiveness?,Source: World Bank Indicators, World Bank 2000.,Campaign for Competitiveness,Cluster Analysis Review of Sectors Macro and Micro Environments Dialogue Mechanisms Second round of presentations,Results of Initial Exercise,Institutionalized Dialogue Initiated Sound Data and Analysis Provided P
27、rivate and Public Champions Emerge Demand from Industries Evident “Mindset” is beginning to change Beginning of a Shared Vision Clear Opportunities for Action,Long-Term Support/Follow-up,Cluster Coaching Policy Reform Institutional Dialogue Example: Mongolia Cashmere, IT, Meat and Tourism Policy and Institutional Reform Media and Education Example: Sri Lanka Tea, Rubber, IT, Tourism BOI, IPS,
