Mod2 Week 1 Hand in Assignment Review of Oviatt and Mcdougal's "Toward a Theory of International New Ventures"

On the other hands, competitive advantage is described as the advantages such as technology, human resources or any other elements that help the firm outperform their competitors (Burns, 2008). Competitive advantage is a dominant factor affecting the enterprise business, particularly the profit that the firm can gain. Combining these two terms together, it is clear that the more competitive advantage the company has in the long-term, the more success the firm can be in such a fierce international competitive

Barney, J. (2004). Firm resources and Sustained Competitive Advantage. Strategy: Process Content Context: an international perspective, de Wit & Meyer , 285-292.

Porter, Michael. 1998. “Competitive Advantage: Creating and Sustaining Superior Performance.” 26 Dec, 2011. Free Press, 1998.

OE is not sufficient to explain and define strategy. Company and managers confuse OE for competition and run into trouble by only trying to focus and maximize OE. Firm’s loose their competitive advantage by focusing on growth and forget to focus on core competencies that gave them their competitive advantage in the first place. Companies should focus on strategy and the important contents of strategy. This starts at core

Each nation operates and establishes four main attributes which constitute the diamond of national advantage; these attributes are factor conditions, demand condition, related and supporting industries and firm strategy, structure, and rivalry. When identifying these attributes, it may helps companies to learn how to compete; and each point of the whole system can affect directly for achieving international competitive advantage in the company. We can cite the pressures to invest and innovate, the goals of the managers and owners, the information available that shapes the opportunities, the direction in which they deploy their skills and the availability of skills and resources. First factor conditions according to an economic view that the factors of production are labor, natural resources, land… all these determine the flow of trade. But in the sophisticated companies it creates the most important factor of production such as skilled human resources and performance. Considering and involving heavy and specialized investment which constitutes an advantage in knowledge intensive industries. Sometimes nations succeed

Michael Porter’s contribution to marketing is that the term competitive advantage to the country is utilized in the strategic management structure of organisations (Fix). For an endeavour the competitive advantage can be distinguished as the parts that constitutes the prevalent execution of the organization in the mean of benefit in correlation with the contenders of a certain firm. In competitive advantage, the focus of Porter’s view are as per the following (Jurevicius, 2013).

A company or an organization can create competitive advantage only when it is able to distinguish itself from the rivals by implementing a value creating strategy over a longer period of time. It is said to have a sustainable competitive advantage when other rival firms are unable to duplicate the value creating strategy of the firm which has led to the achievement

The following essay is going to attempt to assess the above proposition and try to find if it is possible to add value continually over a period of time. I will first discuss what competitive advantage is and what it means to a firm. Then I will explain the sources of competitive advantage and how the distinctive capabilities of a firm allow it to sustain added value. The discussion is based on a number of viewpoints from different authors who will be clearly indicated and acknowledged. I begin with explaining what competitive advantage is.

Developing competitive advantage has three key core components (Winer, 2004). According to Winer (2004), the first component is that “competitive advantage must be able to produce customer value, which is defined by the consumer as lower prices, convenience, or quick delivery time”. The second core component is the enhanced value of the product or service provided as perceived by a consumer. Whether or not your product is superior, it must be seen as such by the consumer. Finally, the third component to competitive advantage requires that the business approach an entrepreneur uses should be difficult for competitors to duplicate.

Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).

Over the last few decades there has been a substantial amount of attention being diverted towards born global firms who unlike ordinary firms, have defied the traditional stage wise process of internationalization. These firms have long puzzled researchers and challenged the basic perception of internationalization. As a result it has given way to a new field of research and aroused global interest in the emergence and success of these firms. Before going into any further detail its important to understand what born global firms really are. They are defined as “a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries”. A more detailed definition defines born global firms as “companies who have reached a share of foreign sales of at least 25 per cent within a time frame of two to three years after their establishment”. The term “born global” was first coined together by Michael Rennie (1993) who undertook a study on firms who were capable of managing and co-ordinating resources beyond national borders and competing globally. This essay will go on explain why born global firms emerge, the factors that influence them and examples of born global firms in the real world. The Uppsala theory and Buckley and Casson’s theory of internationalization of MNE’S are used to further analyze this essay.

One of the greatest artist Pablo Picasso once said, “Action is the foundational key to success”. Well, we all agree with this quote, but there are many variety of factors that also implies in aspect of life. In the field of business, one of the key elements that ultimately controls the destiny of an organization, is their competitive advantage in a particular industry. The competitive advantage is defined as “an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices”("Competitive Advantage | Business."). In order to deeper understand of competitive advantage in a firm, I chose to read the book “Competitive Advantage

Increasingly, firms find themselves, either by design or circumstances, operating in business environments fraught with unprecedented, unparalleled, unrelenting, and largely unpredictable change. Retaining competitive advantage is a constant preoccupation for all companies. Millions of words have been written purporting to identify the principles and practices most likely to enable firms to gain competitive advantage and, thereby, enjoy superior profit margins. Despite all this study, management remains a testing ground where theory, experience, judgment and, sometimes, luck play a role.

The major factors overlooked by Oviatt and McDougall, and which build the competitive advantage are - according to Zahra- :

To better understand why some nations are more competitive than others, Porter conducted the research in order to ‘look for determinants in the national business environment that can explain why in some countries firms in particular industries are more successful than those in other nations’. (Ard-Pieter de Man, 1997, p. 48) The research culminated in framework known as diamond which describes the determinants of competitive advantage. Porter ‘ identified four attributes that promote or impede the creation of competitive advantage: (1) factor conditions, (2) demand conditions, (3) related and supporting industries, and (4) firm strategy, structure, and rivalry’. (Dirk Morschett, 2015, p. 176)