Article Review



Article Review

Introduction

This paper presents a critical review of an article “Unbundling the construct of firm-level international competitiveness” written by Daniele Cerrato and Donatella Depperu. This firm discusses the competitiveness in the companies and firms all over the world.

Critical Analysis

According to the authors, in the international market firms compete, not countries. We need to understand as the company creates and maintains a competitive advantage to understand country's role in the process. At the present stage competitive the ability of firms are not restricted to the borders of their home countries. To understand the nature of the competition, the basic unit is the industry (Either processing or service), then there is a group competitors producing goods or services directly competing with each other. Strategically important sectors include Products with similar sources of competitive advantage. An example of this- production of facsimile equipment, polyethylene, heavy trucks to long-distance transport and equipment for molding plastic molding. Additionally, there may be a related industry, the products of which are the same buyers, production technology or sales channels, but they make their requirements for competitive advantage. In practice, the boundaries between industry has always been very vague. The author says that in order to develop a competitive strategy, firms seek to find and implement profitable and long-term way to compete in the industry. Universal competitive strategy does not exist, only the strategy agreed to the terms of a particular industry, the skills and capital possessed by a particular firm, can succeed. The choice of competitive strategy is determined by two main points. The first- structure of the industry in which the firm operates. The essence of competition in different industries are very different, and the probability of obtaining long-term earnings in different sectors varies. For example, the average profitability pharmaceuticals and cosmetics are very high, ...