Introduction
The world has increasingly tended towards a global market approach in its operations worldwide. International cooperation and global production systems have played a significant role in making the world what it is today – a global village. One of the leading figures who developed the theory of international cooperation and global production systems is Professor Michael E. Porter of Harvard Business School. Professor Michael E. Porters contribution to the development of international cooperation and global production systems has been invaluable. This paper provides an in-depth analysis of Professor Michael E. Porters theory of international cooperation and global production systems and its implications for the business.
Discussion
Michael E. Porters Theory of International Cooperations and Global Production System
Professor Michael E. Porter has developed a concept which he strongly believes will help individuals and companies to maximize their efficiency and productivity, when engaging in international business. Professor Michael E. Porters theory of international cooperation and global production systems attempts to provide organizations with a platform from which to grow and expand in a competitive global business environment. This theory of International Cooperations and Global Production Systems combines Porters Theory of Competitive Advantage and Porters Five Forces Model. It argues that in terms of organizations operating in a competitive world, companies can no longer operate independently and that cooperation is key to achieving competitive advantage.
At its core, Professor Michael E. Porters theory of international cooperation and global production systems focuses on the creation of a global platform in which businesses can capitalize on potential opportunities while minimizing potential risks. The core of the theory focuses on the idea of the Triple A rule: the integration of capabilities, resources, and collaboration of different companies from across the world. This allows services and products to be carefully positioned not only to meet customer expectations and but also increase competitiveness in the global market. At the same time, this approach allows companies to construct and target strategies which are tailored to meet different customer needs and fit different global markets.
In addition, Porters theory of international cooperation and global production systems places an emphasis on the creation of a worldwide market through the combination of different localities which would drive global production and cooperation. This is centered upon the idea that globalization is turning businesses from local providers to global competitors: by having economies of scale and economies of scope, it is possible to leverage shared resources such as skills, knowledge, and technology in order to increase competitive advantage. Moreover, Porters five forces provide a well-developed understanding of the competitive forces of industries. This allows businesses to take into account the impact of different competitors, suppliers, and buyers as domestic businesses come under pressure from competitors and the demands of customers in a global environment. This model therefore allows companies to better prepare themselves for potential risks and could be an effective tool for strategic decision making.
Implications
The theory of international cooperation and global production systems put forward by Professor Michael E. Porter has a number of implications for businesses. First and foremost, the concept of global production and cooperation provides a platform for businesses to maximize their efficiency and productivity as it allows for becoming involved in the development of new markets and expanding existing ones. This approach provides businesses with the opportunity to use global resources from a variety of countries and apply them in a way that will maximize the outcome for the company. This allows for businesses to identify hidden opportunities and capitalize on them.
Furthermore, Porters five forces model places an emphasis on understanding the competitive forces of different industries. This model allows for businesses to be prepared for potential risks associated with a particular industry and allows for strategic decision making on how to move forward with a particular strategy. This can create a more effective method of managing and developing operations and allows for businesses to be more informed of potential competition and possible strategies to gain a competitive advantage.
Conclusion
In conclusion, Professor Michael E. Porters theory of international cooperation and global production systems provides businesses with a powerful tool for operating in a global business environment. By combining Porters Theory of Competitive Advantage and Porters Five Forces Model, businesses can take advantage of global resources in order to maximize their efficiency and productivity. Additionally, Porters five forces model provides a strong understanding of the competitive forces of different industries, allowing businesses to be prepared for potential risks associated with the industry and to effectively manage their operations in the global market. Overall, Professor Michael E. Porters theory of international cooperation and global production systems is invaluable in understanding the intricacies of the global business market.
参考文献
Porter, M. 2007. The Five Competitive Forces That Shape Strategy. Harvard Business Review.
Porter, M. 1998. The Competitive Advantage of Nations. Harvard Business Review.
Rutland, J. 2019. “International Cooperation and Global Production Systems: Insights from Michael E. Porter.” Journal of Management Development, 38(2): 156–166.
World Bank. 2018. “Global Production Network: A Summary.” World Bank.
