Nation Advantages and Firm's Advantages

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Nation Advantages and Firm's Advantages
How does a firm strategy and structure help to promote the nation advantage against other nations?
I'm being told that when a foreign firm wants to enter a particular country, it has to look if it can take advantage of any present cluster. But, even if the foreign firm enters the nation and joins a cluster already made up by other firms, it's still up to the foreign firm's own strategy and structure (it's own competitive advantage) to succeed in that nation isn't it?

Firms have to co-operate and compete at the same time. For this it requires the entering firm to have a clear business plan on how they intend to compete, but at the same time they will have to build alliances and relationships with cluster members. There are numerous examples where 'coopetition' exists, particularly in India. Technology transfer and market know-how can provide a basis for this approach.

An Example of Clustering in Australia
Jonathan Smith, Member
Firms tend to cluster around sets of resources, and this can have a compound effect, as the clustering gains momentum.
For example, in the north of Australia we have a lot of mineral and energy resources, so companies like Chevron, BHP, Rio Tinto 'cluster' there to exploit those resources. This creates demand for a certain type of labour. So engineers and blue-collar workers are attracted to the area. This also puts pressure on the government to provide infrastructure to support these industries: rail, roads, ports, etc, which provides benefits to all the companies in that area and attracts new companies to join the cluster. And so on...



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