Country of origin as a source of competitive advantage

Abstract

In an increasingly competitive global market it is becoming more and more difficult to establish a sustainable competitive advantage (SCA). In this context it is surprising that the emphasis is upon competing in export markets as opposed to defending domestic markets from such global competition, particularly when offensive strategies are generally more risky than defensive ones. One attribute that offers the potential for an SCA in both home and foreign markets is the country of origin or product country image. This was confirmed by a review of the literature and the Australian Made campaign. However, an analysis of the Scotland the Brand initiative and exploratory in-depth interviews with senior Scottish executives indicated that there is continuing reluctance to use the country of origin/product country image effect in domestic markets.