COMPETITIVE ADVANTAGE OF NATIONS

Rating:
Summary: Why Certain Countries Make What They Make
Review: Michael Porter with "The Competitive Advantage of Nations" deserves to be considered with the likes of Adam Smith and Milton Friedman in the pantheon of economists. Porter has presented with this book exactly how states like the United States, United Kingdom, and Japan have risen to the top of the heap in certain industries and remain constrained in others.

In a word, what each country that has achieved a competitive advantage in a particular industry has going for it is competition. Domestic competition is what pushed these countries to the forefront in their respective industries. What's more is that Porter makes a convincing case that the current national champion model of economic growth is doomed to failure precisely because it wipes out domestic competition. The countries that most often practice the national champion model of economic growth are the ones that have remained the most backward or have stopped growing. Porter does give one example of where this is not the case, tires. Tires are an exception where national champions work well because no country in the world has much of a domestically competitive tire market that would give them an advantage.

Furthermore, Porter describes the life-cycle of national industries. They go from nascent competition to increased competition for an expanding market to increased innovation to stagnation to consolidation, and then decline. He goes into detail with several industries in several countries. My favorite analysis that Porter undertakes is of the ceramic tile industry. Two countries have become the primary manufacturers and designers of ceramic tiles: Italy and Spain. These two countries have national cultures and economic advantages that play right into ceramic tiles. Porter expertly explains why Spain and Italy have come to dominate this industry when they have been so inept in other industries.

Porter has written the definitive book on national competitive advantage. "The Competitive Advantage of Nations" should be required reading for all government personnel around the world.

Rating:
Summary: Why Certain Countries Make What They Make
Review: Michael Porter with "The Competitive Advantage of Nations" deserves to be considered with the likes of Adam Smith and Milton Friedman in the pantheon of economists. Porter has presented with this book exactly how states like the United States, United Kingdom, and Japan have risen to the top of the heap in certain industries and remain constrained in others.

In a word, what each country that has achieved a competitive advantage in a particular industry has going for it is competition. Domestic competition is what pushed these countries to the forefront in their respective industries. What's more is that Porter makes a convincing case that the current national champion model of economic growth is doomed to failure precisely because it wipes out domestic competition. The countries that most often practice the national champion model of economic growth are the ones that have remained the most backward or have stopped growing. Porter does give one example of where this is not the case, tires. Tires are an exception where national champions work well because no country in the world has much of a domestically competitive tire market that would give them an advantage.

Furthermore, Porter describes the life-cycle of national industries. They go from nascent competition to increased competition for an expanding market to increased innovation to stagnation to consolidation, and then decline. He goes into detail with several industries in several countries. My favorite analysis that Porter undertakes is of the ceramic tile industry. Two countries have become the primary manufacturers and designers of ceramic tiles: Italy and Spain. These two countries have national cultures and economic advantages that play right into ceramic tiles. Porter expertly explains why Spain and Italy have come to dominate this industry when they have been so inept in other industries.

Porter has written the definitive book on national competitive advantage. "The Competitive Advantage of Nations" should be required reading for all government personnel around the world.

Rating:
Summary: Good read.
Review: 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.

Rating:
Summary: Really bad
Review: This is a paradigm of the sort of book Paul Krugman complains about; i.e. a book about macroeconomic policy by someone who clearly doesn't understand macroeconomics.

Porter should stick to what he is good at, which is management consulting.