Determinants Of National Competitive Advantage And Policies For Local Companies In Kuwait

National Competitive Advantage

Discuss about the Business Level Strategy for National Competitiveness.
 

Determinants of national competitive advantage create the national environment in which companies are born and learn how to compete

National competitive is a major determinant for the creation of the national environment for the establishment of companies. It determines how competitive the company is as compared to other companies. National competitiveness is determined by a company’s capacity to upgrade from one level of production to another (Jin & Moon, 2006 p.195). Companies which produce quality goods satisfy customers’ needs. Many customers are interested in goods from the companies having quality goods and services. It is therefore important for the company to make sure that they do produce quality products for the satisfaction of the customers.

Policies that protect and support the local companies in Kuwait 

Reflecting on Michael Porter, encouragement of the entrepreneurship is one of the policies that should be imposed in Kuwait. Through the encouragement of entrepreneurship, local companies are given chance to produce goods regardless of how small scale they would do. Encouragement of the entrepreneurship has boosted the economy in Kuwait because every local entrepreneur having a business idea is given a chance and support through loan help to establish a local business within the country (Vos, 2013 p.56). It serves as the key factor for the movement of the low waged individuals willing to invest in small scale companies. The local government has encouraged the entrepreneurship by giving small-scale Entrepreneurs progress in local companies’ investment. It is through entrepreneurship that individuals are allowed to set up their local companies no matter how small may look for the betterment of the Kuwait economy.

This is one of the important policies that should be recommended in Kuwait (Rugman & D’cruz, 2013 p.17-18). Local companies are mostly formed by a multitude of a small business having different types of the products. The government should not interfere with the goods produced by the local companies so long as they are legally produced. There should be no national sales plan for one particular product but it should be applied to all products produced by the local companies. The government of Kuwait was supposed to help local companies import the best raw materials from outside the country. This will make sure that the goods produced are of the best quality for the satisfaction of the customers. The policy on products diversity should be based on the interest of the locals. It should satisfy the needs of the local customers in Kuwait (Manning, 2012 p.90). The local government should give varieties of products to be produced by the local companies within the country. The diversity of products produced for the local companies will give the local investors the chance to exercise their innovation capacity by determining which best product that suits their interests. The level of innovation will be maximized if this policy is imposed on all local companies in Kuwait. Through the production of new products, the local companies will increase their chances to reach many customers across the world. 

Policies for Local Companies in Kuwait

For the protection of the local companies, there should be the protection of their working environment (Smit, 2010 p56). It can be done through the establishment of the local stores and warehouse that will keep raw materials for the local companies. The stores and warehouse will be used for the storage of the ready goods prior time of distribution.  Local companies should be protected from unfavourable working conditions. It is the duty of the local companies to make sure that local companies have fair competition and no company interfere with the progress of the other.  Both external and internal factors should be put into consideration to make sure that the local company operates in good conditions. Environmental factors should be regulated for instance; factors such as terrain and geographical factors should be considered before the establishment of the local companies in such areas (Holweg & Småros, 2015 p.170). Kuwait has established some policies that will lead to the reduction of the unsuccessful production in the local companies. It is the mandate of local government to protect the local companies from any loss within Kuwait. This can be done by looking for the factors which are capable of causing the production losses and come up with prevention measures before the establishment of the local company. There should prevention measures for water and air pollution in the local company’s potential areas of the establishment. This will enables wells start-up of the local companies within the country. Through the establishment of such policies, the local companies in Kuwait will have a well-protected environment for their progress.

Regarding Michael Porter models, Kuwait should encourage support of the local companies by the government. It is through the regulation of the government policies regarding ownership of the local companies within the area that it will determine how fast the companies will be able to grow. There should be established local stores that will enable comparative benefits for the local companies established within the area. Many big stores and shopping malls are supposed to be established particularly in a local area so that they can benefit the local companies within the area by making sure that their goods and raw materials are well stored and ready goods distributed to the malls.  The support of the local companies starts with lowering of the cost of establishment of the company within ant part of Kuwait.  This is well determined by the government policies set against the establishment of the local companies (Kurtz & Snowden, 2013 p.462). In this case, the cost of the establishment should be lowered by allowing the borrowing and load help services for the local companies. It will be a great help for any low earning individuals get help from the government to start a small business which may grow into a local company ( Holweg & smarts, 2015 p.181). The infrastructure establishment is one of the basic supports of any local company since they all need a good pass way for movement of the raw materials and products in and out of the company.

Encouragement of Entrepreneurship

There should be a policy that will protect local ownership and decision making for the establishment of local companies in Kuwait. The strategies for local decision-making procedures should be in a position to cater to the local people living in Kuwait having an idea to establish a local company (Porter, 2011 p.95-96). The regulation of the decision making the process by the locals should be intensified by application of guidance for anybody or a group of an individual having an idea to establish a particular local company in Kuwait. Capita support is the most important for the local entrepreneurs since it gives anyone who is willing to establish a local company within Kuwait a financial support. Directive policies should be given to the individuals regarding some of the short-term and long-term effects they may face in the establishment of the local company (Taket, 2017 p.89). Requirements for the local companies should be educated to any individual willing to set up a local company Kuwait. 

There are some strategies significant for the enhancement of the capacity for any local firms in Kuwait to achieve their global market success. Some of the strategies are;

Discussion of the strengths and weakness of the firm will be the best way of weighing out of the firm success in the global market.  Examination of the ways in which the organizations do for their internal and external environmental factors is one of the best strategies for the success of the organization globally. Stakeholders for the firm will contribute to a high degree on development and success of the firm over the global markets (Orlikowski & Gash, 2014 p.174). It is therefore important to set the strategies for the evaluation of the stakeholders and management of the firm for its success.

This will extend the level of the firm decision making process skills. The strategy will lead to the development of the combined skills for the best progress of the firm. Decision-making process is one of the best starts for the success of any organization within the global markets. It is through the decisions made across the business that determines whether the business will have high production as compared to other business in the global market.  The scale of production will determine how the business is successful globally (Weick, 2012 p.89).

This is one of the critical arrangements that ought to be prescribed in Kuwait nation for the success of the organizations in global markets. The success of the firm is determined by types of the goods produced and their quality. The strategies set for the production of the goods in the firm determine its success in the global market. There ought to be choice of the items in light of how little the business it is (Davis et al, 2018 p.561). 

Products Diversity

Encouragement of the enterprise is one of the approaches that empower success of the firms in the global markets. Many of the local companies success is determined by how it sets its goals and strategies on the enterprise. Different local companies will have different goals regarding its production scale. It is therefore important for any local company to determine its set strategies so that it can be able to have stiff competitions with other local companies producing similar goods in the market. It is a key factor in the development of the low-income people who will have an interest in local companies. The government has empowered the business enterprise to make sure all the firms are successful in their production within the global market (Wei & Wang, 2011 p.267). In the world of global competition, government support and regulation is so important since it acts as a mediator between the local companies.  Competition has led to the production of the quality goods marking the success of films in the global market. The advantage of competition has created the sustained local processes and competition success of the local companies. 

References

Vos, J.P., 2013. Making sense of strategy: A social systems perspective (No. 03.10). Eindhoven Center for Innovation Studies (ECIS).pp 56-67

Manning, A.D., 2012. Making sense of strategy. AMACOM/American Management Association.pp90-678

Holweg, M., and Småros, J., 2015. Supply chain collaboration:: Making sense of the strategy continuum. European management journal, 23(2), pp.170-181.

Drew, S., 2017. Building knowledge management into strategy: making sense of a new perspective. Long range planning, 32(1), pp.130-136.

Kurtz, C.F. and Snowden, D.J., 2013. The new dynamics of strategy: Sense-making in a complex and complicated world. IBM systems journal, 42(3), pp.462-483.

Taket, A., 2017. Information, Systems and Information Systems-Making Sense of the Field.pp.89-123

Orlikowski, W.J. and Gash, D.C., 2014. Technological frames: making sense of information technology in organizations. ACM Transactions on Information Systems (TOIS), 12(2), pp.174-207.

Weick, K.E., 2012. Making sense of the organization, Volume 2: The impermanent organization (Vol. 2). John Wiley & Sons.pp89-57

Davis, C.G., Nolen-Hoeksema, S. and Larson, J., 2018. Making sense of loss and benefiting from the experience: two construals of meaning. Journal of personality and social psychology, 75(2), p.561.

Wei, Y.S. and Wang, Q., 2011. Making sense of a market information system for superior performance: The roles of organizational responsiveness and innovation strategy. Industrial Marketing Management, 40(2), pp.267-277.

Porter, M.E., 2011. Towards a dynamic theory of strategy. Strategic management journal, 12(S2), pp.95-117.

Rugman, A.M. and D’cruz, J.R., 2013. The” double diamond” model of international competitiveness: The Kuwait experience. MIR: Management International Review, pp.17-39.

Smit, A.J., 2010. The competitive advantage of nations: is Porter’s Diamond Framework a new theory that explains the international competitiveness of countries?. Kuwait Business Review, 14(1).pp56-89.

Jin, B. and Moon, H.C., 2006. The diamond approach to the competitiveness of Korea’s apparel industry: Michael Porter and beyond. Journal of Fashion Marketing and Management: An International Journal, 10(2), pp.195-208.