A methodology for competitive advantage analysis and strategy formulation: An example in a transitional economy

Industrial competitiveness has become the focal point of study in recent years as global competition has intensified. Although many studies are devoted to the topic, they remain largely conceptual and descriptive, and thus it is difficult to make them operational. Very recently, several studies were conducted to model industrial competitiveness through quantitative analysis, but few consider how to combine the degree and scope of determinant factors of competitive advantages and competitive strategic goals to maximize a firm's competitiveness, or how to analyze the main problems of creating competitive advantage. The present study proposes a model-based approach to competitive analysis and discusses its multi-phased implementation in a large electronic plant in China. The proposed model can provide a comprehensive analytical tool for industrial competitiveness and can yield useful insights for competitive strategy formulation.