National Competitive Advantage as the Context for Marketing Strategy: An Empirical Study of the New Zealand Wine Industry
by Phil Bretherton, School of Marketing and Tourism, Faculty of Business and Law, Central Queensland University, Yaamba Road, North Rockhampton, QLD 4702 1. Introduction Although Porter's (1990) work on national competitive advantage is both widely taught and widely quoted, relatively little empirical research has been undertaken using the model to evaluate the competitive advantage of a particular country and its affect on an industry as the context for developing market strategy. This research looks at the New Zealand economy from the perspective of a number of winery CEO's who are responsible for setting strategic intent at a time of rapid change. There has been considerable interest recently in the resource view of strategy and discussion of the efficacy of Porter's (1990) Five Forces model of industry attractiveness and what drives organisational profitability. This research looks at one more influential factor. It is clear that the overall competitive advantage of a country has an affect on organisational performance; the extent of this affect is not measured here. 2. Literature Review There has been considerable debate about the influence organisational resources and also the attractiveness of the industry have on profitability but relatively little empirical work has been conducted, including research of the influence of national competitive advantage, (Hooley, Greenley, Cadogan, Muhlbacher, and Fahy, 2001; Fahy, 2000, and Grant, 1991). Figure 1 shows the various elements that affect the competitive advantage of a nation. Factor conditions are a reference to a nation's position with regard to factors of production such as land, labour and capital. Demand conditions are concerned with domestic demand for the industry's product or service. Related and supporting... [continues]
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