"What Business Should Do to Restore Competitiveness” by Michael Porter and Jan Rivkin

“What business should do to restore competitiveness”

by Michael Porter and Jan Rivkin

Professors Michael Porter and Jan Rivkin wrote an article entitled “What business should do to restore competitiveness”, which was published on Fortune Magazine last October 15, 2012. The said article is intended to address the problem that their country is currently struggling. It talks about how the firms in the United States can lead in re-establishing their country’s competitiveness while at the same time, improving their own interests. Porter and Rivkin enumerated long-term, specific, and achievable strategies that these businesses could do in order to address their national problem.

The United States is currently facing a long-term structural competitiveness problem that comes out from different fundamental issues that could possibly weaken their capability to uphold the living standards of its people. This matter is critical to them because, as described in the article, competitiveness is the ability of the firms operating in the country can compete successfully in global economy while supporting high and rising living standards for the average American. The two defining factors of competitiveness always come in pair; without the other, their country is said to be not competitive enough. To overcome this, the country needs a long-term strategy that points out a number of key elements in being a highly productive location; one where firms can create innovative, distinctive products and produce them efficiently.

In addition, there are opposing positions as to which side is liable for the decline of their country’s competitiveness. One position says that, national competitiveness is the responsibility of the policymakers. While on the other hand, it says that, companies owe loyalty to the country that supports them. In the article, it is said that, “every firm draws on the business environment in the communities where it operates, or called as the “commons”.” The...