What Is Culture And How Can It Be Used As Competitive Advantage?

There is strong relationship between the culture and the competitive advantage. The value systems and norms of a country influence the costs of doing business in that country. The company can establish its competitive advantage in any country by using the cost of doing business in that country. In many religions and cultures there is strong influence on the work and the payment of interest and social structure of the society has important role in the work behavior of people.

It can be argued that the class-based conflict between workers and management in class conscious societies. In any country the cost of doing business raises when there is industrial disturbance in that country. Japan presents us with an interesting example of how culture can influence competitive advantage. Many philosophers say that the beauty of the Japanese culture is that it decreases the cost of doing business in Japan. The success of such culture is due to the society's values such as loyal with the employers, unity, self-responsibilities, truthfulness and innovation which resulted in the competitiveness of Japanese companies. These values encourage people of Japan to remain loyal with their companies. This tends to foster an ethic of hard work and cooperation between management and labour.