Author: Michael E Porter
Michael Porter creates another masterpiece in his writings by editing the book from over 20 contributors. The book handles competition from four facets: theory, function, organization and empirical investigation.
Summary of Content
Firstly, the book outlines the conceptual foundations for the framework on competition in global industries and modeling global competition. Companies can learn how and where to classify their market competition, cross-currents and overall international strategy.
Secondly, the book explains the functional agenda in terms of tackling –
- – International support, geographic dispersion, business-intensity, for manufacturing and technology
- – International marketing configuration, coordination and linkage with non-marketing activities
- – International linkage of financial markets, domestic intervention, role of finance in global competition, exchange rate volatility and risk management
- – Capital as a competitive weapon, market costs, debt utilization, equity markets, government incentives and investment options
- – Government policies, tradeoffs, and role/ strategies of MNC industries, corporate relations, structures, and knowledge gaps in global firm
Thirdly, the book explores the various transnational organizational forms and challenges in terms of coalitions, patterns, international strategy, and implementing coalition agreements in global coalition activity; and, organizational influences, management and tools for transnational firms.
Finally, the book provides enough empirical evidence for MNC trade trends in different nations, during war years and technology after war, origin of foreign-controlled establishments, use of merger-route, case-studies on industry changes, common traits of globalization, changing global industry leadership and global competition in salient industry like aircraft.
Analysis & Evaluation of the book
The authors describe the theories, previous scholars’ works, examples and practical relevance followed by future research scope in the field of Global competition. Each paper narrowly focuses on a given topic and hence not much industry is covered in the process. For example, in the globalized world, competition laws play an important role. MNCs and governments can make a marked difference to their industrialization and economic growth by working on better laws than earlier. The area is not covered well in the book.
Other areas like global changes in corporate governance, competitive strategy, and financial implications are studied for industry cases. A global value-chain can be constructed for global competition using the various dimensions described in the book. However, it needs to be tested for fit with industries and sectors.
The book with over 500 pages can act as ready-reference for students, practitioners and researchers.
It’s strictly meant for business corporates who can understand it better than MBA students or others. It is available in soft-copy (Kindle), hardcover versions. It is sold in all major book stores and online book sites.