The Role of Design in International Competitiveness

D.O. Ughanwa, M.J. Baker

• Publisher: Routledge
• Year: 2018
• ISBN:
  9781351248037
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

Design is an important factor in business success. This book, first published in 1989, analyses what the role of design is in business success; just what design is; and how both design and its management might be improved. It draws on extensive original research by the authors in eighty-seven companies regarded as leaders in the field of export and technological achievement and it reports on the experiences of these companies. Among the book's many important conclusions and recommendations for improved practice are: that design, rather than price, is the key factor in determining customer/user satisfaction; and that success with design is the leading characteristic of firms that compete successfully in international markets.

Chapter one

The British disease: an examination of factors underlying the decline in British competitiveness in world markets

Introduction

Despite claims of an expanding economy, a close scrutiny of recent trade statistics in manufacturing goods indicates that imported manufactures have consistently eroded the home-market share of the UK producer. In the words of Lord Nelson (1984), ‘Britain’s manufacturing industry is today facing a most serious challenge. Its markets have been eroded, its competitiveness has been seriously weakened and its share of world manufacturing exports has shrunk; meanwhile imports of manufactured goods into the UK have increased …’

Over the last thirty years or so, government and independent bodies such as the National Economic Development Office (NEDO), the Design Council, the Council for National Academic Awards (CNAA), and the Boston Consulting Group (BCG) have undertaken a prolific number of in-depth studies into industries that were once the backbone of Britain’s dominant manufacturing economy. The abundant publications on the results of these studies bear testimony to the rapid and competitive decline of such key industries. All of these tend to add to the growing concern throughout the UK about the uncertain future of these key industries.

Ironically, Britain’s competitiveness is most seriously weakened in those areas where it led the world previously -- shipbuilding, cars, motor cycles and bicycles -- to name but some of the important examples. Two questions come to mind. What are the causes of this decline? Why have the UK’s exports shrunk while its imports have increased?

The answers to these questions lie in the purpose of this chapter, namely, to examine the reasons for the continuing decline in the UK’s international competitiveness.

The chapter contains four parts. The first takes a broad look at six industries in which Britain was once either a world leader or known to be competitively strong when compared with major foreign rivals, but which have consistently declined over the years and, in some cases, been completely decimated. They are: shipbuilding, motor cars, motor trucks, motor cycles, bicycles, and television.

The second part, which is an extension of the first, reviews a select tabulation of over forty cases spanning more than thirty years (1952–85) to explore additional reasons for the UK’s weakening position in world trade.

However, this is not to say that all UK firms are non-competitive. Far from it. Some UK firms are highly competitive and this takes us to the third part of this chapter, which examines some of the firms that have successfully competed internationally.

In the final part we draw some conclusions that provide a framework for the succeeding analysis and research.

The decline in UK competitiveness in international markets: some empirical evidence

A firm can be described as competitive internationally when its total manufactured exports expressed as a percentage of its total sales revenue or output exceeds the equivalent exports or output of its rival firm(s) in foreign markets. Using this benchmark, a review of the research into the competitive decline of British industries confirms beyond doubt that even in industries in which Britain was a world leader, its competitiveness has been severely eroded if not entirely eliminated.

This section discusses six industries in which Britain was either once a world leader or was known to have been competitively strong. They are: shipbuilding, motor cars, motor trucks, motor cycles, bicycles, and television manufacture. While the evidence presented has been available for some time, it is believed that its concentration and discussion in a single analysis is essential to establish the nature and extent of the problem that faces British managers today. Thus, although many of the original studies are dated, their import is clear and largely confirmed by subsequent events.

The shipbuilding industry

In an extensive study of the ‘Causes of the decline in British merchant shipbuilding and marine engineering’ between 1890 and 1974, Albu (1976) found that the UK had consistently lagged behind its major overseas competitors.

Table 1.1 suggests that in 1890 Great Britain owned more than half of the world’s mercantile fleet and built over 80 per cent of the new tonnage of merchant ships in the world that year. However, as Table 1.1 indicates, the UK’s proportion of the world mercantile fleet had steadily fallen from about 52 per cent in 1890 to about 10 per cent in 1974. Similarly, the tonnage built over the same period consistently declined from about 81 per cent in 1890 to less than 4 per cent in 1974.

Table 1.2 shows the major innovations in ship design and construction, in marine propulsion machinery and their sources. It suggests that Britain led the world in ship design and construction and...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• List of figures
• List of tables
• Preface
• 1 The British disease: an examination of factors underlying the decline in British competitiveness in world markets
• 2 Price and value
• 3 Taking stock
• 4 The characteristics of commercially successful firms
• 5 Sharpening the competitive edge
• 6 Design: meaning and application
• 7 Improving competitiveness through design management
• 8 A model of the role of design in international competitiveness
• Bibliography and further reading
• Name index
• Subject index