The Competitive Advantage of China

Masters
Essay
Miscellaneous
Pages 2 (502 words)
Download 0
China's buoyant growth rates coupled with low inflation, very high savings rates and manageable levels of public debt have boosted China's macroeconomy. However, a number of structural weaknesses need to be addressed. These are the main issues that emerge from the case study…

Introduction

The country is ranked very low on considerations of favoritism in government decision making (Rank 43rd), ethical behavior (47th) Intellectual property protection (58th) and auditing and accounting standards (95th). These are artificial constraints and businesses have to be more innovative (manipulative) to succeed.
The extent of sophistication of China's competitive advantage was quite poor, the country being ranked at 59th on this factor. Its competitiveness is based more on providing cheap labor and natural resources rather than unique and sophisticated products, technologies and processes.
The country's state owned enterprises and the banking sector are still in deep trouble, government intervention to protect these lead to skewed decisions. Levels of financial intermediation are low and the state has had to intervene from time to time to mitigate the adverse effects of a large, non-performing loan portfolio. Added to this is the artificially fixed exchange rate that has remained unchanged at 8.28 Rmb/US$ in the period under review. Floating of the Yuan to see its market driven level shall have major repercussions on the economy as it likely to appreciate considerably making Chinese products more expensive and allow competition from other countries.
In terms of consumer sophistication China ranked 42nd; and only 64th in terms of the extent to which its domestic consumers actively de ...
Download paper
Not exactly what you need?

Related papers

Competitive Advantage at Louis Vuitton and Gucci
While on the other hand Pinault-Printemps-Redoute (PPR) is a French retailing group which incepted in 1963 and having strong entrepreneurship background and performance driven culture, it became one of the leading fashion empires. PPR incorporates 6 different business groups including Fnac, Redcats Group, Conforama, CFAO, Puma and Gucci Group. Shared between these groups is a list of business…
Innovation and Competitive Advantage
The companies are facing a great development in the global markets resulted from globalization. Therefore, they are thinking of a new generation of managers, which we call global managers. They have a wide viewpoint of unexpected environmental changes that needs a fast and right decision to make. The old generations of managers don't have this competency. So, they can't adapt with the new…
International Marketing: competitive advantage and branding
In addition, Frank (with a large commercial law firm In Brussels) has helped negotiate a suitable site on the edge of the industrial area, just in a strategic position- industrial park of the town-which could most likely be a suitable location for the business. This will make it possible for the commissioning and construction of new factories for the company.…
Maintaining Competitive Advantage
The firm applies three types of competitive advantage in its operations i.e. cost leadership, differentiation (of product, image, service, sales, distribution and marketing) and lastly focus in cost and differentiation. (Palmer and Hardy, 2000)…
Analysis of the Firm and Competitive Advantage
It is a series of activities (i.e. a production process) that constitutes a chain creating and building value. The summation of these generated values is called the total value performed by an organization ("Value Chain Analysis"). It is "full range of activities that are required to bring a product from its conception to its end use and beyond" (qtd. in "Basic Concepts").…
The competitive advantage of the Country Singapore using Porter's Competitive advantage and the Diamond factors
We also find out in this study that, though the country has a natural small land area, the country capabilities and efficient and effective use of information technology has more than compensated for its present international position in the shipping and sea transportation industry. The country position and image has been further enhanced through electronic government that has transformed public…
The Competitive Advantage of China
The country is ranked very low on considerations of favoritism in government decision making (Rank 43rd), ethical behavior (47th) Intellectual property protection (58th) and auditing and accounting standards (95th). These are artificial constraints and businesses have to be more innovative (manipulative) to succeed.…