How Strategic Behavior Impacts Dynamics of Competitive Advantage, Research Paper Example

Introduction

The idea of establishing a strategy to deal with several problems in the economy is an important condition to give attention to when it comes to handling issues of economic advancement. This aspect of economic development specifically consider the involvement of human entity within the process of establishing elements that would create stability in a nation’s condition of financial status in comparison with other countries. As broad as the topic of strategic behavior is, this research shall specifically make an indicative explanation on what strategic behavior is and how it affects the dynamics of competitive advantage that the economy is often presented with especially in line with international relations.

The rationale behind the topic presented in this research is basically giving attention to is the fact that the economy at present depends on several elements that impact the manner by which each aspect of the system performs for the development that nations want so much to embrace. Relating such elements to human behavior and how such behavior actually create strategies that are dedicated to development for the overall economic standing of a particular country, this research tries to make a specific connection between strategic behavior and the elements of dynamic comparative advantage. It is expected that through this research, an understanding dynamic comparative advantage is to be given better attention to. Its relation to strategic behavior is also expected to be established fully hence pointing out how humans specifically impact the status of the economy as a whole.

Discussion Points

It is an undeniable truth that the economy undergoes several changes every now and again that strongly influences how the entire system works for the society. Relatively, such changes affect the ability of several industries to perform fully and generate proper sources of profit for the overall savings fund of the country. It is indicated through research that the dynamic comparative advantage specifically points out the change in the competitive advantage of industries against each other. These industries, given that they are connected to each other, specifically affect each other’s performance in the market. The performance that each industry posses in the market depend on how they are accepted by the people who are included within the said unit that the industries are supposed to serve. This way, the humans that are included in the market affect the dynamic comparative advantage of each industry.

The behavior that the market presents in line with what industries offer them with allows the operators of the said entities to decide on what products they are to release, what services they are to create and how they are likely to price the said offers to ensure market acceptance. From such useful information, the industries then create a strategic behavior that could likely allow them the chance to stand against industry-to-industry competition in the local market. Remarkably, the human conditions of thinking and deciding on their wants and needs specifically serve as a guide to industrial operators as they try to establish their competitive groundwork, which they expect to generate profits for them and somehow provide them the chance to encounter growth as a realized source of industrial confidence.

It should be realized too that there are some outside elements that affects the conditions of dynamic comparative advantage of several industries that define their standing in offering both products and services in the market. As for example, the pricing that they establish their offers on do not only depend on market behavior but also on the international pricing of materials that are traded internationally. At this point, the factor of cost, capital and labor that are used to produce both products and services are all taken into consideration when it comes to defining market offers from the industries that are operating in a specific nation.

Conclusion

Practically understanding how human behavior affects the behavior of the economy as a whole gives a definite condition of identification on how a country could perform economically against international competition. As based form this discussion though, it has been realized that the local performance of industries largely influence the condition by which the country performs as a whole. Taking into consideration the fact that local markets decide how local industries fare in the competition, international markets also find a way to strongly contribute to how international economy turns around. The creation of decision among these industries bring about the foundation of how a country’s economy stands against other nations thus giving it a chance to support the needs of its people which involves the different programs that are supposedly able to give attention to the basic needs of the society.

The relation between strategic behavior among industries and the people as a whole creates a manipulative condition by which both parties are able to create contributory effect on each other. While the market has specific demands from the industries, the industries respond accordingly hence giving the people a chance to experience what they deserve from the business entities enjoined in the system. In return, the profit that the industries earn determine their competitive stance in the overall operation of the system. In a way, the collaboration of all elements involved makes it easier for the economy to withstand international competition as a nation.

References:

Beal, R.M. (2011). Competitive Advantage: Sustainable or Temporary in Today’s Dynamic Environment? http://www.sba.muohio.edu/abas/2001/brussels/reginaldbeal.pdf. (Retrieved on October 10, 2012).

CHaharbhagi, K. (1999). Sustainable competitive advantage. http://ecsocman.hse.ru/data/974/617/1231/sustainableca.pdf. (Retrieved on October 10, 2012).

Grimm, C.M. Strategy as Action. http://peyk.iribu.ir/download/book/Strategy%20as%20Action.pdf. (Retrieved on October 10, 2012).