Umair Haque / Bubblegeneration
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Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Saturday, August 07, 2004

Comparative Advantage

Does the comparative advantage of your economy impact strategy and competitiveness? Of course it does.

But we've taken ours for granted for a long time - and so it's decayed. The link between macro structure and how it limits (or enables) firm strategy is something that is going to emerge as a very, very serious issue in the next year or so - especially given the latest jobs data.

Here's another great example:

"...the health care liabilities of
both employees and retirees represent
a significant competitive disadvantage
relative to the Japanese carmakers with
their younger, non-unionized work force.

He noted that GM, which has two-anda-
half pensioners for every employee,
estimates that pensions and health care
benefits add $1,000 to the cost of each
car it makes. A structural issue like that
is not easily remedied."

Link (PDF).

-- umair // 5:56 PM // 0 comments


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