|
|
|
| BUILDING COMPETITIVE ADVANTAGE OF LOCATION FOR THE AUTOMOBILE INDUSTRY——A Case Study of Changchun |
| HAN Feng, LIU Ji-sheng |
| College of Urban and Environment Science, Northeast Normal University, Changchun 130024, China |
|
|
|
|
Abstract The meaning of location advantage gets more and more competitive and locations should construct their own competitive advantage to meet the challenge in the course of economic globalization. Michael Porter has brought forward that location can influence firm competitive advantage with the diamond model that shows sources of location competitive advantage. This paper brings forward a new definition, location competitive advantage, which means that a location can absorb more and more resources of its main industries if it can provide good integrated conditions that benefit firm competitive advantage for the industry, therefore, it will have its own competitive advantage and be the winner in the international competition. The model above can be used to analyze location competitive advantage of any industry, but every industry has its own characteristics, which must influence the contents of the index system of the model. Therefore, the paper aims to study the model of location competitive advantage of a concrete industry. During the period of China's changing from industry society to knowledge industry, the manufactures are representative with the characters of the competitive advantage of location in two societies. The paper chooses competitive advantage of location for the automobile industry to analyze, which is influenced mostly by Transnational Corporations (TNCs), The index system of the model are ascertained with the characteristics of TNCs' locations in the course of economic globalization and the correlative condition studies of the industry.
At last, it analyzes the automobile industry in Changchun to suggest the train of thought of building competitive advantages of location. According to the analysis on Changchun's location condition, there are two trains of thought to build Changchun's competitive advantage. One is increase Changchun's R&D ability of the automobile industry to develop its advantage. The other is constructing countrywide networks of production, logistic and information to make up the disadvantage of smaller market and fewer fastidious consumers.
|
|
Received: 30 December 2004
|
|
|
|
|
|
|
2006, Vol. 21 
