What is Medical Equipment ?

such as Sony, Samsung, and Philips in the audiovisual industry

or Nike, adidas, and Puma in the clothing manufacturing industry, should understand the nature of the market and analyze the key factors that differentiate each one from the others.

A company gains a competitive advantage in the market if do it

A company competes through "cost" the product offered to the customers should be identical to the competitors at a lower priceses

A company that competes through “differentiation", the product should be visibly higher in terms of quality and more expensive than the other products in the same industriwes

Samsung Electronics Corporation has gained its competitive advantage from doing business for years in the audiovisual industry

According to Johnson, Scholes and Whittington (2008), core competencies refers to “the skills and abilities by which resources

are deployed through an organisation’s activities and processes such as to achieve competitive advantage in ways that others cannot imitate or obtain”

Developed by Hamel and Prahalad in 1990, simply stated

it provides customers with major benefits

it is difficult to imitate

Differentiated from regular competencies and capabilities

Hamel and Prahalad (1990) highlighted the underlying role of a core competence.

They likened the diversified corporation to a tree, with the branches and canopy representing the wide range of end product in the various

To this end, the government is considering incentives to encourage the consumers to purchase new vehicles

Such governmental interest in the auto industry thus provides favourable conditions for both local and foreign auto manufacturers and suppliers in China.

Economic Environment:

According to a web article posted by The Economist online on Dec 27th 2011, “over the past ten years, real GDP growth averaged 10.5%

a year in China and 1.6% in America; inflation (as measured by the GDP deflator) averaged 4.3% and 2.2% respectively”.

Foreign direct investments have also been on the rise over the last decade, and consumer spending has been strong.

Statistics provided in the case study by Farhoomand and Huang, 2010 show huge annual increases in car sales in China versus the rest of the world.

As the world’s 2nd largest automobile producer and market (Farhoomand and Huang, 2010) and with its large population and booming economy,

China is a key market for foreign companies, and particularly those in the car industry.

Social / Cultural Environment:

How Can A Company Measure Its Competitive Advantage?