Marketing Assignment: An Article Review on “The Looming Challenge to U.S. Competitiveness”
Task: Marketing Assignment Task: Historically the USA and Silicon Valley have been at the heart of global innovation. The attached article argues why it might no longer be the case. You are an entrepreneur and a hopeful leader of a new company. You have an idea and some of your funding. You have been offered a Green Card to the USA but you are not sure whether you should stay in your home country, move to the USA or look for another country. Do an analysis of the attached article and then make a recommendation to yourself based on your knowledge of other locales or just your home market on whether or not you would move to the USA to start the business. Explain why.
The purpose of the following marketing assignment is to analyze the article from the Harvard Business Review named “The Looming Challenge to U.S. Competitiveness”. The authors of the article are Michael E. Porter and Jan W. Rivkin. This article was published in the year 2012 (Porter &Rivkin, 2012). The main elements of the paper discuss the facts that the USA and Silicon Valley have always been known for their innovation and creative perspectives within society. It has attributed for the developmental works on how an entrepreneur could begin his business in the USA and flourish by all the available opportunities in front of him. This would always be an exciting opportunityfor all the entrepreneurs to try their luck as the country encourages the concept of innovation. Still, it has been seen that the concept of innovation has been growing in other countries and this has created lots of challenges for the United States. Entrepreneurs will be bound to think twice even if they are offered the Green Card visa and proper funding to support them before they move on to the United States.
Analysis of the Article
Lately, many countries in Asia and Europe have been motivated to utilize the opportunity of creativity and entrepreneurship because it helps to explore many business opportunities and opens wide gates for people with the entrepreneurial mindset (Rudskaia&Rodionov, 2018). It is always effective for people to try new countries before they set out their journey for the United States. The opportunities for entrepreneurial activities are growing outside the United States. This has been featured in the article “The Looming Challenge to U.S. Competitiveness”by Rivkin and Porter (Porter &Rivkin, 2012). Both of them have highlighted the opportunities before the entrepreneurs to try their luck in other countries and highlighted some loopholes why the USA is lagging in this scenario. The authors have explored the level of competitiveness in the United States as many scholars from diverse groups have helped them. All of these scholars have researched and developed their understanding of this concept of innovation and competitiveness within the United States.
According to Porter and Rivkin (2012), it has been explored that the business leaders of the United States, as well as their government, have not recognized the challenges lying underneath their overall system of business entrepreneurship (Porter &Rivkin, 2012). This might probably the reason why people are more interested in setting up their businesses in other countries (Bugnar, Mester& Fora, 2016).The authors have explored the fact that long-term prospects for the entrepreneurs are very weak in the country and this would force the present-day entrepreneurs about rethinking their decisions on trying their luck in the United States. The country has always been known for living and helping the American Dream to grow. However, the recent policies and legal obligations have weakened this perspective. Though it has always been a dream come true place for millions, they are considering other countries to get the support and motivation for starting their business. This is a great challenge for the United States about entrepreneurship (Kwon &Motohashi, 2017).
The economy of the United States has been suffering for a long time and this has been a long-running challenge for the entire country. They are yet to recover from the recession and the duration is prolonged (Rudskaia&Rodionov, 2018). This is the reason it might not be the correct time to start an entrepreneurship career. On the other hand, it is also true that all of these entrepreneurial businesses and their growth opportunities will help the United States to get over this challenge. Otherwise, it will be difficult for the country to return to the previous situation if Government does not apply some formidable economic policies and strategies. According to Porter and Rivkin (2012), the biggest challenge that the United States is facing right now is less visible but it is very much fundamental. This is the probable reason why the organizations will look to highlight better the opportunities of entrepreneurship among the youths. Or else, young people will slowly become demotivated and leave the country to live their dreams (Bugnar, Mester& Fora, 2016).
The rise in the overall structure has been hampered and this has caused challenges for big business corporations also. The structural changes that are made within the country might hamper the entire working procedures of the country and they will suffer the consequences after few years. This is why many scholars have advised young entrepreneurs to move outside the USA or do not go to the USA at all (Porter &Rivkin, 2012). There are lots of countries in Europe like France, Germany, Belgium, the Netherlands, and others where they could begin their entrepreneurship activities. Though these countries are not that economically settled it will be helpful for them to capitalize on entrepreneurial activities and implement some strategies to utilize the growth. The research work of the authors has shown that the United States is facing very serious challenges structurally nowadays and it will be very difficult for them to overcome that in a short time (Do?an, 2016).
They have also highlighted the need for implementing a long-term strategy that will help the United States to get out of this situation. The United States and Silicon Valley have been reputed for their encouragement towards new opportunities and guide them to grow. The structural challenges have created barriers in this perspective and some countries from Asia and Europe and Asia are taking up this opportunity. They are designing the best strategies so they can utilize the weaknesses of the United States (Porter &Rivkin, 2012).The long-term strategies for development will help the country to develop and focus on better ideas to evaluate the innovative business ideas from the young people. It is high time that the business leaders of large corporations scattered throughout the United States will have to be proactive (Rudskaia&Rodionov, 2018).
They might opt for investing in the local communities as a part of their corporate social responsibility. This can create some opportunities for them to identify local talents who could be useful for them. Thus the organizations will have to think about the best strategies to support the new policies to be implemented by the government in this scenario. There is no doubt at this point that the government will need to change lots of policies and this will only be for the wellbeing of the communities (Kwon &Motohashi, 2017). They should be given the chance to show their talents and skills so companies do not have to outsource the employees. Effectively, the organizations should implement some strategies for the overall development. It is also very crucial that the competitive quotient is installed in the United States for all the firms in the country (Porter &Rivkin, 2012). The lack of competition among the firms will be harmful to the firms based in the USA or those who operate in the country but based outside.
This high level of competition will determine the best opportunities in the country and create a better environment for the business. The entrepreneurs will also be motivated to start their business within the United States according to their initial plans. Organizations have to find out some ways after talking with the government about some probable strategies (Do?an, 2016).It is the prior role of the federal government to take some steps and build up the competition once again to strengthen the US economy. Foreign multinational firms also contribute to the economic growth of the United States(Rudskaia&Rodionov, 2018).The implementation of the psychological theory will be very crucial in this scenario. Organizations should encourage the entrepreneurial mindset of the employees and this is one of the most crucial aspects for their development. The psychological beliefs and motivations will assist in building up the never say die attitude in front of difficulties within an uncertain and volatile business environment (Porter &Rivkin, 2012).
The entrepreneurs will always feel the urge to bring their best efforts in terms of innovative approach and productivity. These people are always alert about the opportunities and capitalize on the best possible attributes for the growth and expansion of their business (Bugnar, Mester& Fora, 2016).The economic theory of entrepreneurship is also very crucial in this process. The entrepreneurs will execute all the activities that would provide them with the highest amount of economic incentives. This entirely depends on the economic stability of the host country for their business (Do?an, 2016). As the economic growth has slowed down in the United States, these entrepreneurs will find it very difficult to progress here. Therefore, the government should employ some constructive strategies to support the cause of all these entrepreneurs. According to the critics, it is also significant that resource-based theory should be taken under consideration by people looking to establish their businesses (Rudskaia&Rodionov, 2018).
The availability of the needed resources is indeed crucial. The United States is no doubt full of resources and they must utilize all of these resources properly. Another theory related to entrepreneurship and innovation is the opportunity-based theory. This theory is very crucial for business-minded people to acknowledge because they should be alert about all the available opportunities (Do?an, 2016).Otherwise, it will be very difficult for them to utilize the resources and opportunities for their growth. In this article, both the authors Porter and Rivkin have highlighted the need for assurance in higher productivity.
This would ensure that the economy of the United States will soar upwards. The demands for new resources like pharmaceuticals and software products must be increased. Places like New Jersey and Silicon Valley will feel to regain their lost glory in this perspective. Innovation, as well as productivity, should always go hand-in-hand (Kwon &Motohashi, 2017). This will improve the chances of higher prosperity. The problem related to lack of productivity after the Great Recession has halted the economic prosperity of the country and it must be revived for their benefits in the future.
On a concluding note, it could be said that the organizations in the United States are going through a struggling time because the impacts of the Great Recession are already there. The situation is very demotivating for the new businesses to be set up. People with new and innovative ideas should try other locales other than the USA or stay at their home market. They can try out the USA later when the economic growth will support their causes. Otherwise, it will be difficult for them to tap into the American market and gain profits. The support of the American government is highly needed to revive the economy and look for long-term benefits.
In this section of the paper, some recommendations will be given to the people who have accumulated sufficient funding and Green Card visas to go to the USA and establish their business. The economic conditions of the United State are not that good enough at this point. It will be appreciated if he chooses to establish his business in European or Asian countries like Germany, France, China, Japan, or somewhere else. All these countries have become superpowers in using technology. Their superior advancement in technology is astonishing and it has helped them to cater to the economic growth of the country. Later on, they can opt to migrate into the United States when the situation is good enough. They can choose different modes of market entry after they have earned the name for themselves. If they have a sufficient amount of funding, they could begin their business in their home country because he is well aware of the business environment there.
The volatile or uncertain market environment of the United States can be rough and challenging for that person. This is the reason he is advised to stay at his home market and continue with the business. Rather, he can find a way to tap into other locales after analyzing the market environments. The economic conditions of Europe will support them well enough to continue the business. In this scenario, it will be a huge risk for them to get profits in the United States where already established global corporations are struggling.
Bugnar, N., Mester, L., & Fora, A. (2016). Innovation and international competitiveness of a country. Annals of the University of Oradea, Economics Science Series, 25(2), 35-43. http://steconomiceuoradea.ro/anale/volume/2016/n2/004.pdf
Do?an, E. (2016). The effect of innovation on competitiveness. Ekonometrive?statistik e-Dergisi, (24), 60-81. https://dergipark.org.tr/en/download/article-file/268727
Kwon, S., &Motohashi, K. (2017). How institutional arrangements in the National Innovation System affect industrial competitiveness: A study of Japan and the US with multiagent simulation. Marketing assignment Technological Forecasting and Social Change, 115, 221-235. https://www.rieti.go.jp/jp/publications/dp/15e065.pdf
Porter, M., &Rivkin, J. (2012). The Looming Challenge to U.S. Competitiveness. Harvard Business Review. Retrieved 17 June 2021, from https://hbr.org/2012/03/the-looming-challenge-to-us-competitiveness.
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