What is competitive advantage?

What is the competitive advantage of Detroit?

  • Beyond cheap land and labor, what does Detroit offer to make it a worthwhile place (for living in, operating a business, anything)? What is it about the geography, history, policies, and so forth that give it an inherent edge over other cities? There are of course the much-ballyhooed downsides, but what are the potential upsides we might not be aware of? Has Detroit actually never enjoyed a competitive advantage? Was the auto industry born there simply because Henry Ford was born there? Is there more to this story... like Chicago's advantage as a trade hub (by air, land, and sea)?

  • Answer:

    1. A metropolitan area of some 6 million people spreading across two states and two countries and including some of the wealthiest suburbs in America. 2. A bridge AND a tunnel from downtown Detroit to CANADA, a major trading partner. That bridge and tunnel are possible because it lies on a strait along the Great Lakes which connects to many of North America's major cities and out to the Atlantic Ocean. 3. Forget auto manufacturing, any business that is related to or wants to work with the auto industry (e.g. advertising) needs an office in the area. 4. Access to fresh water. 5. The people. There are great people in Detroit, which warrants its own post. 6. Access to fresh graduates from the University of Michigan as well as Wayne State University (who may already be used to living in the city).

Tomo Huynh at Quora Visit the source

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A2A In my opinion. the best thing Detroit has going for it (and especially will have once bankruptcy proceedings have been wrapped up) is a relatively clean slate to start with. Many of the traditional impediments - corruption, irreconcilable financial pressures, stuck-in-a-rut thinking, etc. - will have been reduced significantly. Rather like the aftermath of a forest fire, there will be room for creative thinking and hard work to take root and grow. Of course, I am not so naive - nor is anyone else - to believe that a successful, sustained comeback is guaranteed. But opportunities are far greater than they have been for decades.

Dana H. Shultz

Although "competitive advantage" is probably not the appropriate term, Detroit does have this one of a few things going for it: it has yet to use all of its resources. Speaking at the Orpheum Theatre in Vancouver last week, Robert Reich suggested that Detroit was not necessarily a poor city. In fact, he said, the suburbs of Detroit include some of the wealthiest districts in the United States. If the city and its suburbs were to amalgamate, the overall state of the region's economy would not be nearly as dire as it is. According to Reich, Detroit is an extreme litmus test for current economic trends towards a more disparate American society. From his essay, http://robertreich.org/post/55976062830: Americans are segregating by income more than ever before. Forty years ago, most cities (including Detroit) had a mixture of wealthy, middle-class, and poor residents. Now, each income group tends to lives separately, in its own city รข€” with its own tax bases and philanthropies that support, at one extreme, excellent schools, resplendent parks, rapid-response security, efficient transportation, and other first-rate services; or, at the opposite extreme, terrible schools, dilapidated parks, high crime, and third-rate services. Hamilton, Ontario had a similar, albeit less serious, inner city challenge. Ten years ago, they amalgamated their more wealthy suburbs and now have a significant tax base with which to more fairly allocate public resources within the region. Although the suburbs still complain here and there, the city has succeeded in improving a number of its downtown urban spaces thanks this change. This is by no means a "silver bullet," but it does imply that Detroit and its surrounding regions have not yet sapped all resources.

Claire Atkin

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