The question for this assignment is about the development of idea that deals with discussing about the comparisons of the production and the operation management of different countries by using the concept of competitive advantage. This question will be answered by giving evidence about the theories of porter in competitiveness. Other theories that are linked with factors of production and inherent wealth of the nation will be explained to determine every point of the discussion. National assets are in the form of labour pool, classics, natural resources and other assets that develop with the passage of time. The competitiveness of the country is dependent upon the ability of the industries present in the country. This ability is about the development of the industry to innovate and upgrade. Best companies in the world have gained competitive advantage by showing positive signs in pressure and challenging situations.
National competitiveness not just a theory
When companies are dealing in the international markets they have to work on innovations that work on domestic as well as international needs. This can be explained by taking the example of newly developed need of the customers about the safety of products. Now the companies that have captured this opportunity have captured the market and they have the competitive advantage over other companies. In this situation most of the Swedish companies like Volvo, AGA and Atlas have worked on catering this need of the customers and they have gained market share (Fendel and Frenkel, 2005). Along with these innovations are also playing an important role in giving competitive advantage to the companies like concerning about the home market and then go for international market. The decoy of most of the defence market present in US is to divert the attention from US materials and machine tools (Kogut, 2001).