Converting comparative resources to competitive advantagesGlobalization, especially the increase in trade flows has indeed changed the world of business irreversibly. Manufacturing, more than any other economic activity, is flowing rapidly to the lowest level of “cost”. This cost is understood largely as “cost of means” or “comparative resource”. Availability of a very competitive manufacturing ecosystem (includes labour, infrastructure and ease of doing business) has enabled China become the factory of the world. Similarly, our English speaking, intelligent youth available at relatively low cost has earned us our premium position in the “services” world order. We do not have a viable business case as far as comparative resources are the basis of our competitiveness. Fortunately, business is about creating “competitive advantages” – it’s not just “What do you have?” but “What do you do with it?” that creates the competitive advantages. The one resource that we have a comparative edge in is “minds”. This can be leveraged to create competitive advantages in our chosen area of economic activity – whether it is production, technology, logistics, …or a combination of these.
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