Competitive advantage is not created within a single firm alone. Efficiency in internal operations is essential but not necessarily sufficient to compete globally. Factors external to the business are increasingly important. Each firm is inherently part of a "cluster" of activities made up of firms along the value chain as well as related and supporting organizations e.g. research and development, finance, worker skills, infrastructure. In general, clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions in particular fields that compete but also cooperate. A cluster may include industries that share similar workforce, input, or infrastructure needs. In addition, a cluster may have more to do with the output of the “cluster” industries. Clusters may also be defined by complementary or interdependent industries: one may produce what another needs. It has been demonstrated throughout the world that strong clusters ensure sustainable competitive advantage and that this strength has managed to help countries improve drastically on their global competitiveness.
One region that is currently developing a very attractive multimedia cluster is San Francisco, California. The cluster is constantly evolving as telecommunications and computer technologies combine in a rapid fashion. Defined broadly, the multimedia cluster is the creators, producers, and distributors of software and hardware that integrate video, sound, text, and graphics. This integration is all done in a digital medium to produce a multimedia product or service. Currently there is an estimated 2000 multimedia or multimedia-related industry firms concentrated in the San Francisco area.
The major components of the multimedia industry’s potential cluster in San Francisco are categorized as follows:
Supplier Sector
Technology providers - These are the producers of the enabling technology and include firms in computer hardware and software, consumer electronics, and digital communications. Examples include: Apple, Creative Labs
Multimedia developers - These are the integrators and developers of the "media" itself and include artists, writers, programmers, animators, interface designers, and others. Examples include: Broderbund, Crystal Dynamics
Content providers - These are the providers of information presented through multimedia and include film, TV and video entertainment companies, print publishers, news organizations, and information systems service providers. Examples include: LucasArts Entertainment, HBO
Community Infrastructure
These are the shared resources that contribute to and benefit from the multimedia potential cluster. This infrastructure is comprised of research labs, universities, training organizations, investors, associations, accountants, and other professional services providers that either contribute to the development of the product or engage in using the product.
What the program specifically does is assess the main career clusters that are applicable to the state of Illinois’ economy. The Pathways project focus on the 9 clusters that are of particular importance to state’s economic growth and development. These clusters include: Agriculture Food and Natural Resources, Architecture and Construction, Energy, Finance, Health Science, Information Technology, Manufacturing, Research and Development, and Transportation, Distribution and Logistics (2013, p.21).
6.Brian A. Johnson, John H. Ott, Jack M. Stephenson, Paal K. Weberg. Banking on multimedia. The McKinsey Quarterly 1995.
In United States cable television industry, the traditional cable companies compete with different types of competitors. Like Netflix which is in home entertainment occupied the part of market share in the industry. The unique organizational architecture support Netflix has a sit in the entertainment industry. Furthermore, the traditional cable companies change their original structural to cope with the fierce competition.
Outsiders wondered how each company’s internal changes would affect their endless competitive battle in the industry. The case illustrates how global competitiveness depends on the organizational capability, the difficulty of overcoming deeply rooted administrative heritage, and the limitations of both classic multinational and global models.
Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources. Capabilities describe environment and strategic environment. Core competencies include knowledge and technical capability. In this section we will attempt to describe in detail the three segments which are resources, capabilities, and core competencies.
Aquinas Multimedia, 12 May 2008. Web. The Web. The Web. 10 Apr. 2014.
Sternberg, R. and Kiese, M. and Stockinger, D. (2008) ‘Cluster policies in the US and Germany: varieties of capitalism perspective on two high-tech states’ Environment and Planning C: Government and Policy 2010, 28, pp.1063-1082
Media assets has the Digital photographs, animations, videos and music exemplify those are the target areas for media asset.
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
the author offers a theoretical framework, which outlines the underlining factors that contribute to national competitiveness. Michael Porter’s work was met with contrasted views. While some academics praised the model for its wealth of information and the convenient framework it generated (Greenway, 1993), many other academics in international business criticized the model for its theoretical flaws and lack of empirical evidence.
Management: The case of GroupWare technologies. Sloan Management Review,(38) 2 , 11-22. Retrieved October 28, 1999 from EBSCO business search on Galileo: http://www.galileo.gsu.edu
Few industries are undergoing as much rapid change as music, entertainment, and Internet/new media-industries that KnitMedia is in. Compile a list of the trends (such as consolidation of the music companies) taking place today for which Michael and his colleagues will have to plan.
of a firm to attain new forms of competitive advantage (Müller, 2011). It is due to these
In today’s technology boom, the new waves of doing business have transformed the way people shop and live. The same happened the way people access personal entertainment. With Internet, people can stream movie online without have to go theater, or the rental movie box.
Currently in the global environment, there is a strong sense of competition that must be achieved through better performance, almost all firms are competing in international markets due to the reduction in barriers for capital and tariffs. With the new changes in both communication and technology, the consequences faced are that production processes are no longer within national boundaries but spread across (Debrah & Smith, 2002).