Competitive strategies in the electronics industry in Brazil and China

a measure under the generalized double diamond approacha measure under the generalized double diamond approach

Abstract

The electronics industry is essential to stimulate economic development; because it incorporates aggregated value, increases efficiency and productivity, and is present in almost all sectors of the economy. In the last decades, China has stood out as the main provider in the worldwide market of the sector, while in Brazil there are still serious competitive fragilities. In order to contribute to the discussion about the direction the sector should take, the objective of this paper is to measure the competitiveness of the electronics industry in both countries and to estimate what is the best competitive strategy for Brazil in relation to China. Through the generalized double diamond model, it was verified that the international competitiveness of China is very strong, but in Brazil the competitiveness depends heavily on domestic variables. The best strategy for the national electronics industry is a differentiation strategy, because it would result in an increase of 4% in its competitiveness in world market.