Shared value (Porter & Kramer, Creating Shared Value, January – February 2011)
The concept of shared value can be defined as the policies and operating practices that improve the competitiveness of a company, at the same time consider the advancement of economic and social conditions in the communities in which it operates.
Shared value creation focuses on identifying and expanding the connections between society and economic progress.
The competitiveness of a company and the health of the communities where it operates are strongly intertwined as a company needs a successful community, not only to create demand for its products, but also to provide crucial public assets and an environment that supports the business. A community needs successful businesses that offer jobs and wealth creation opportunities for its citizens.
Competitive strategy.
Competition is at the center of business success or failure. Competition determines the ownership of a company's activities that can contribute to its performance, such as innovations, a cohesive culture, or good implementation. Competitive strategy is the search for a favorable competitive position. Competitive strategy tries to establish a profitable and sustainable position against the forces that determine the competition.
The competitive advantage comes fundamentally from the value that a company is capable of creating for its buyers, which exceeds the cost of that company to create it. Value is what buyers are willing to pay, and higher value comes from offering lower prices than competitors for equivalent benefits or for providing unique benefits that justify a higher price.
Principles of competitive advantage
The competitive advantage so far played by companies and competitive markets after several decades, years of expansion and prosperity, however, many companies lost sight of competitive advantage in their fight for growth and pursuit of diversification.
Well, the importance of competitive advantage could be scarcely greater. Businesses around the world, facing slower growth, as well as domestic and global competitors, no longer act as if the growing pie is big enough for everyone.
Competitive advantage is far from being a new topic point in one way or another, many business books deal directly or indirectly with it. Cost control has been of interest for a long time, as has differentiation and segmentation.
Although a company can have millions of strengths and weaknesses compared to its competitors, there are two basic types of competitive advantages that a company can possess: low cost or differentiation.
Cost leadership
Cost leadership perhaps the clearest of strategies, itself, a company aims to be the lowest-cost producer in its industrial sector. The breadth of the business is often important to your cost advantage.
The sources of cost advantages are varied and depend on the structure of the industrial sector. They may include the pursuit of economies of scale, proprietary technology, preferential access to raw materials, and other factors. However a cost leader cannot ignore the basis of differentiation if their product is not perceived as comparable or acceptable to buyers, a cost leader will be forced to discount prices far below their competitors to achieve sales.
Differentiation
In a differentiation strategy, a company seeks to be unique in its industrial sector along with some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industrial sector perceive as important, and is exclusively dedicated to satisfying those needs. Its exclusivity is rewarded with a higher price.
Differentiation may be based on the product itself, the delivery system by which it is sold, the marketing approach, and a wide range of many other factors.
Focus
This strategy is very different from us because it rests on choosing a narrow competition landscape. The focused selects a group or secret from the industrial sector and adjusts its strategy to serve them to the exclusion of others. By optimizing its strategy for the target segments, the focuser seeks to achieve a competitive advantage in its target segments, even if it does not have an overall competitive advantage.
The white segments must have buyers with unusual needs or also the production and delivery system, which best serves the white segment and should differ from the other segments of the industrial sector.
The cost approach exploits differences in cost behavior in some segments, while the differentiation approach exploits the special needs of buyers in certain segments. Those differences imply that the segments are poorly served by competitors with very broad objectives, who serve him at the same time as they serve the others. The focuser can thus achieve competitive advantage by dedicating the segments exclusively. The breadth of the objective is clearly a matter of remaining presence of the focus is exploitation of the differences of a narrow target of the balance of the industrial sector.
The value chain
Competitive advantage cannot be understood by looking at a company as a whole. It lies in the many discrete activities that a company performs in the design, production, marketing, delivery and support of its products.
Each of these activities can contribute to the relative cost position of companies and create a basis for differentiation. A cost advantage, for example, can arise from sources as disparate as a low-cost physical distribution system, a highly efficient assembly process, was the use of a superior sales force.
Differentiation can stem from equally diverse factors including sourcing high-quality raw materials, a responsible order registration system, or superior product design.
A systematic way to examine all the activities that a company performs and how they interact is necessary to analyze the sources of competitive advantage. The value chain breaks the company down into its relevant strategic activities to understand the behavior of costs and the existing and potential sources of differentiation.
The value chain of a company is embedded in a larger field of activities called the value system, suppliers have value chains (value up) that create and deliver the purchased inputs used in the chain of a company. Suppliers not only deliver a product, but they can also influence company performance in many other ways.
Additionally, many products pass through value chain channels (channel value) on their way to the buyer. Channels perform additional activities that affect the buyer, as well as influence the company's own activities. The product of a company that will eventually become part of the value chain that the buyer. The ultimate basis for differentiation is a company and the role of its products in the buyer's value chain, which determine the buyer's needs. Gaining and maintaining competitive advantage depends not only on understanding a company's value chain, but how the company fits into the overall value system.
Each company is a set of activities carried out to design, produce, market, deliver and support their products. All these little ones can be represented using a value chain. (Porter, Competitive Advantage, 1994)
Company of a single industrial sector
Diversified company
Company value chain.
(Porter, Competitive Advantage, 1994)
The value chain of a company and the way in which its individual activities are carried out are a reflection of its history, its strategy, its approach to implement the strategy and the fundamental economies for the activities themselves.
Differences between competitors' value chains are a key source of competitive advantage.
Value activities
The Value chain displays the Total Value and consists of value activities and margin.
Value activities are the different physical and technological activities that a company performs. These are the partitions through which a company creates a valuable product for its buyers. The margin can be measured in a variety of ways the supplier and channel value chain also include margin that is important islands for understanding the sources of a company's cost position as the supplier and channel are part of the total cost given to the buyer.
Each valuable activity employs comparative inputs, human resources, and some form of technology to perform its function. Each value activity also creates and uses information, such as buyer data, performance parameters, and product failure statistics. Value activities can also create financial assets, inventories and accounts receivable, or commitments such as accounts payable.
Value activities can be divided into two broad types, primary activities and support activities. The primary activities are the activities involved in the physical creation of the product and its sale and transfer to the buyer, as well as post-sale assistance. Support activities support primary activities and support each other by providing purchased inputs, technology, human resources, and various functions across the company.
Therefore value activities are the discrete partitions of competitive advantage. As each activity is carried out in combination with its economy, they will determine if a company has a low cost compared to its competitors. How each value activity is performed will also determine its contribution to the buyer's needs and therefore to differentiation. Comparing competitors' value chains exposes differences that determine competitive advantage
An analysis of the value chain instead of value added is the proprietary way to examine competitive advantage. Value added (sale price minus the cost of raw material purchased) has sometimes been used as the central point for cost analysis because it has been considered as the year in which the company can control its costs. However, Value Added is not a solid basis for cost analysis, because it incorrectly distinguishes raw materials from many other purchased inputs that are used in the activities of a company. Likewise, the behavior of the costs of the activities cannot be understood without simultaneously examining the costs of the inputs used to achieve them. Also,Value added does not enhance the bonds between a company and its suppliers, which can reduce cost or increase differentiation.
Identification of value activities
Identifying value activities requires isolation from activities that are technologically and strategically distinct. Value activities and accounting classifications are almost never the same. Accounting classifications group activities with disparate technologies and separate costs that are part of the same activity.
Primary activities
Each category is divisible into several different activities that depend on the particular industrial sector and the company's strategy.
- Internal logistics. These are the activities associated with receipt, storage, and dissemination of product inputs, such as material handling, storage, inventory control, vehicle scheduling, and return to suppliers. Activities associated with transforming inputs into the final form of the product, such as machining, packaging, assembly, equipment maintenance, testing, printing or operation and installation. External logistics. Activities associated with the collection, storage and physical distribution of the product to buyers, such as finished goods warehouses, materials handling, vehicle delivery operations, order processing and scheduling, marketing and sales. Activities associated with providing a means by which buyers can purchase the product and induce them to do so, such as advertising,promotion, by force of sales, quotas, channel selections, channel relationships and price. Activities associated with the provision of services to return or maintain the value of the product, such as installation, repair, training, spare parts and product adjustment.
As in primary activities, each category of support activities is divisible into several different value activities that are specific to a given industry sector.
- Sourcing refers to the function of buying used inputs in the company's value chain, not the purchased inputs themselves. Like all value activities, sourcing uses technology, such as vendor dealing procedures, rating rules, and information systems. The cost of sourcing activities by itself often represents a small if not insignificant portion of total costs, but they often have a large impact on the overall cost of the business and on differentiation. Technology development. Each value activity represents technology whether it is know-how, procedures, or the technology within the process team.In addition, most of the valuable activities put a technology that combines different sub-technologies that involve different scientific disciplines. Human resources management. Human resource management consists of the activities involved in the search, hiring, training, development and compensation of all types of personnel. Human resource management affects competitive advantage in any company through its role in determining the skills and motivations of employees and the cost of hiring and training. Company infrastructure. The company's infrastructure consists of various activities, including federal administration, planning, finance, accounting, government legal affairs, and quality management. Infrastructureunlike other support activities, it normally supports the entire chain and not individual activities. The company's infrastructure is sometimes considered only General, but it can be a powerful source of competitive advantage.
The value chain. (Porter, Competitive Advantage, 1994)
Sharing and competitive advantage
Sharing an activity can lead to a substantial competitive advantage if the sharing advantage outweighs the cost, as long as sharing is difficult to be matched by competitors. Sharing has the competitive advantage by reducing cost or increasing differentiation. However, sharing always involves a cost, ranging from the cost of coordinating between the chopped business units to the need to modify the strategies of the units to facilitate sharing.
Sharing an activity of value leads to a significant cost advantage if it involves an activity that represents a significant fraction of operating costs or assets (the activity of great value) and sharing lowers the cost of carrying out that activity. Sharing will significantly increase differentiation if it involves an important activity for differentiation in which sharing by increasing the exclusivity of the activity or reduces the cost of being unique.
Share and cost.
Interrelationships are always costly, because they require business units to modify their behavior in some way. The costs of sharing a valuable activity can be divided into three types:
Coordination cost.
Commitment cost.
Inflexibility cost.
In the coordination cost, the business units must coordinate in areas such as programming, setting priorities and solving problems to share an activity. Coordination involves costs in terms of personal time rather than money. For example, a shared sales force requires continuous coordination, while joint sourcing may require nothing more than periodic communication to determine the quantity of an input purchased per period by each business unit. Different business units may also see the cost of differentiation differently. Coordination costs are often presented by smaller business units, who see a continuing battle for priorities and the risk of being mandated by larger units.
At the cost of commitment, sharing an activity requires that the activity be performed consistently, which may not be optimal for any of the business units involved. For example, sharing a sales force may mean that sales people pay less attention to the product of both business units and know less about the product than a dedicated sales force. The cost of commitment may include the costs not only of a shared value activity but linked value activities. It is almost taken for granted that business units must somehow compromise their needs to share an activity.
The cost of commitment for sharing a frequently deferred activity for each of the business activities affected. For example, a business unit with a product that is difficult to sell may have to commit more by employing a shared sales force. The cost of engagement may also differ because the particular value activity plays a different role with one business unit compared to others due to its strategy. The cost of commitment required to achieve an interrelation is much lower if the strategies of the business units involved are consistent with respect to the role of the shared value activity.Achieving this consistency often involves little or no sacrifice for the affected business units if the strategic directions are coordinated over time.
The cost of engagement is frequently reduced if the activity is designed to share rather than what activities previously separated are simply combined or is an activity designed to serve one business entity is simply substituted for another without change in procedures or technology.
Inflexibility cost
Inflexibility has two forms: (1) the potential difficulty in responding to competitive movements and (2) exit barriers. Sharing may be more difficult to respond quickly to competitors, because trying to fight back in a business unit can undermine by reducing the value of interrelationships for Sister business units. Sharing can also raise exit barriers. Leaving a business unit without a competitive advantage can harm other business units that share an activity. Unlike other sharing costs, the inflexibility cost is not a continuous cost but a potential cost if the need for flexibility increases. The cost of inflexibility will depend on the probability of the need to respond or leave
Ways of sharing and potential competitive advantages according to interrelationships.
Market interrelationships involve sharing the primary value activities involved in achieving and interacting with the buyer, from external logistics to service.
| Way of sharing | Potential competitive advantages | Most likely sources of commitment costs |
| Co-branded | Low advertising costs
Reinforcement of the images |
Product images are inconsistent cost in |
| Product reputations. | conflict.
The buyer is reluctant to buy too much from a company. Reputation decreases if a product is inferior |
|
| Shared advertising | Low advertising costs. Greater coverage in the advertising space to purchases. | The media or messages are appropriate or different.
The effectiveness of advertising is reduced with multiple products. |
| Shared promotion | Lower promotional costs through coupons shared with crusaders. | Appropriate forms and opportunity for promotion differ. |
| Cross-selling of products to mutual buyers. | lower costs of finding new buyers. Lower selling costs | Product images are inconsistent or conflicting. Buyer is reluctant to buy too much from one company. |
| Shared channels | Greater bargaining power with channels that lead to improvements in services, instantaneous placement, maintenance, repair, support or channel margins.
Purchases in one place for the buyer improve differentiation Lower cost of supporting the canal's supporting infrastructure. |
The channel gains a lot of bargaining power from the company The channel is not willing to allow a single company to handle the important part of its sales
Using the shared channel will erode support from other channels. |
| Sales force or shared sales offices | Lower costs of sales or infrastructure costs of the lower sales force. Better sales agents and entered more products to sell improve buyer access moment buyer convenience.
Better utilization of sales force and usage pattern is not the same. |
different buying behaviors of the buyer
Buyer's reluctance to buy a lot from a single agent. The sales agent does not have adequate time with the buyer to effectively present multiple products. Some products reside more attention than others |
| Reuters shared service | Lower service costs. More sophisticated co-responsible service, due to improved technology denser service complications. Better use of capacity if demand for services is so inversely correlated. | Differences in equipment or knowledge needed to be classic repairs. Differences in the need for opportunity in service calls.
Different degrees to which the buyer performs internal service. |
| Shared order processing | Lower order processing costs.
Lower cost for using improved technologies that improve responses or invoice information. Shopping in one place for the buyer improves differentiation |
Differences in the form and composition of classic orders.
Differences than order cycles leading to inconsistent order processing needs. |
| Shared Marketing Department | Lower market research costs.
Lower overall marketing costs |
The positions of the products are different or inconsistent. Buyers' behavior is not the same. |
Production interrelations
The interrelationships of production involve sharing the stream of value activities such as internal logistics, component manufacturing, assembly, by cams, and indirect functions such as infrastructure maintenance of the site.
| Way of sharing | Potential competitive advantages | Most likely sources of commitment costs |
| Shared internal logistics system | Lower weight and material handling costs
Better technology increase delivery reliability, reduce damage. Sharing allows among the smallest and most frequent ones to reduce inventory or improve plant productivity. |
The sources of inputs are located in different geographic areas.
Plants are located in different geographic areas. The different physical characteristics of the inputs imply that a logistics system that can handle them all is suboptimal. The frequency and reliability needs of internal delivery differ across business units. |
| Shared components | Lower component manufacturing costs
Better technology for manufacturing components improves quality |
Component design and quality needs differ across business units |
| Shared facilities for component manufacturing | Lower component costs Better manufacturing technology improves quality
Capacity utilization is improved because demand for similar components is not perfectly correlated |
High preparation costs for different varieties of components Quality needs or tolerances of the components differ between business units
Flexible manufacturing equipment has higher costs than specialized equipment A larger workforce in one location leads to potential hiring, unionism, or productivity problems and |
| Quality management
Shared evidence |
Lower testing costs Better technology increases the expressiveness of tests and improves quality control | Testing procedures and quality standards differ Flexible testing facilities and types are higher in cost |
| Indirect shared activities | Lower costs of indirect tigers Improved quality of indirect activities | Different needs for indirect activities between business units
A larger workforce in one location leads to potential hiring, unionism, and productivity problems. |
Supply interrelations
The supply interrelationships involve the shared supply of common purchased inputs. Common inputs are frequently present in diversified activities, particularly if viewed beyond core raw materials and capital equipment. Suppliers are increasingly willing to be bargains based on supplying the needs of plants located around the world, in addition to negotiating prisoners that reflects total corporate needs.
| Way of sharing | Potential competitive advantages | Most likely sources of commitment costs |
| Joint supply of common supplies | Lower input costs
Improved quality of input Improved sellers service in terms of responses, |
The input needs are different in terms of quality specifications, leading to higher costs than necessary in the |
| inventory maintenance, etc. | business units requiring a lower quality
Technical assistance and supplier delivery needs are vary between business units. Centralization can reduce the flow of information from factory to purchasing and make purchases less responsible. |
Technological interrelations
Technological interrelationships involve sharing technology development activities throughout the value chain. They are distinguished from the interrelationships of production because their impact is on the cost or exclusivity of technology development, while the interrelationships of production involve sharing activities involved in the actual production of the product on a continuous basis.
| Way of sharing | Potential competitive advantages | Most likely sources of commitment costs |
| Shared technology development (for separate products or where one product is incorporated into another) | Lower product or process design costs
A greater critical mass in research and development, or the ability to attract better people improves product innovations or process designs. Transfer of developments between product areas increases differentiation or allows early entry of new technologies. |
The technologies are the same, but the exchanges to apply the technology are different between the business units |
| Shared interface design for products with a technological interface | With its minor interface design
Differentiation through superior performance and proprietary |
A non-standard interface reduces the available market Package risks |
| interface
Package opportunities created through a non-standard interface |
Creating shared value
Although there were times in human history when communities functioned as independent entities, as self-sufficient entities, their needs were precarious, and corresponded mainly to survival needs, such as food and clothing, that self-sufficiency was disappearing as communities they became more complex, largely organized, and therefore required more and better resources. If we continue with this perception, we can see that companies are not self-sufficient then, today they need each other and these to society in all its forms, as employees, as producers, as buyers, Consequently, with the previous approach, and with the concept of Shared Value that Porter and Kramer expose, a concept that goes beyond social responsibility, philanthropy and even sustainability is increasingly coined. It is the shared value that, as defined by Porter and Kramer, focuses on identifying and expanding the connections between economic and social progress. In this way, the generation of business economic value is related to and depends on the creation of value for society.
Porter invites us to abandon the short-term mentality of demanding immediate profits and understand that there are opportunities to think broadly about the benefit of society. In short, it is to be more aware that we must change in the way we ensure profitability and understand management. Create economic value while at the same time creating social and environmental value.
Ways to generate Shared Value
- With the product or service that the company has. We must develop a product or service that meets a social need. There is an enormous opportunity to open new markets by serving clients that have traditionally been ignored, such as those living in poor communities, with another definition of the value chain. There are many opportunities. For example, there is the saving in the use of resources such as energy or logistics resources. You can avoid using trucks or planes that consume gasoline and emit carbon dioxide.Its structural conditions (related companies, suppliers, public goods, educational quality, institutions, etc.) can be beneficial or harmful for each company. Thus, it can make an invaluable contribution by helping to build better clusters through initiatives that improve structural conditions.
In sum, it is necessary to stop seeing social needs from the perspective of social responsibility and philanthropy, in which a very small portion of the value generated by a company is shared, to focus on finding hidden business opportunities in environmental problems. While corporate social responsibility suggests spending resources on a discretionary basis to do things right, shared value sets out how to have better strategic economic performance and continue to have a positive impact on society. (Rubiales, 2013)
Shared value concepts according to Porter.
- Companies today are no longer seen as solutions for society, but as problems. The relationship between the profitability of business and society has very profound implications. We moved from philanthropy to CSR and sustainability and now we must move on to Creating Shared Value Today, capitalism is almost a bad word. We have to use capitalism to create social impact. To be honest, CSR has not brought the benefits of capitalism to society. Efficiency in the economy and the social process are not opposite. Businesses must reconnect the success of the company with social progress. It is necessary to create economic value that generates social benefits beyond the natural ones of the company. Shared value is not social responsibility, philanthropy, or sustainability. It is a new way to achieve economic success.Shared value is to create economic value from the generation of social benefits. Shared value is not theory, it is already a reality. Companies that don't embrace it will be left behind.
Comparative table between Social Responsibility and Shared Value.
(Porter, Creating Shared Value, January – February 2011)
Social responsibility places environmental and community problems on the periphery and not at the very center of business management. While corporate social responsibility suggests spending resources to do things well, shared value establishes the way to have a better economic performance by positively impacting society. For this reason, shared value is a notion that is based on indisputable evidence: in the world that has emerged in these decades, the profits of companies must go hand in hand with social progress and the sustainable development of the community that must be promoted by these companies. And the results of the investigations led by Porter himself are conclusive:Shared value strategies are more sustainable as competitive advantages than product improvements or cost rationalization. For Porter, the idea that it is possible to conceive of economic progress without thinking about social or environmental progress has already amply demonstrated its invalidity. There is no doubt that wealth creation can only be done through private sector business. Therefore, it has to broaden its mentality regarding the essential role it plays in the prosperity of a country. That is the first step of shared value: getting companies to redefine their higher purpose. Understand that business objectives must include the benefit to society, without which it is impossible for their economic success to be sustainable over time. (Exit)The idea that it is possible to conceive of economic progress without thinking about social or environmental progress has already amply demonstrated its invalidity. There is no doubt that wealth creation can only be done through private sector business. Therefore, it has to broaden its mentality regarding the essential role it plays in the prosperity of a country. That is the first step of shared value: getting companies to redefine their higher purpose. Understand that business objectives must include the benefit to society, without which it is impossible for their economic success to be sustainable over time. (Exit)the idea that it is possible to conceive of economic progress without thinking about social or environmental progress has already amply demonstrated its invalidity. There is no doubt that wealth creation can only be done through private sector business. Therefore, it has to broaden its mentality regarding the essential role it plays in the prosperity of a country. That is the first step of shared value: getting companies to redefine their higher purpose. Understand that business objectives must include the benefit to society, without which it is impossible for their economic success to be sustainable over time. (Exit)There is no doubt that wealth creation can only be done through private sector business. Therefore, it has to broaden its mentality regarding the essential role it plays in the prosperity of a country. That is the first step of shared value: getting companies to redefine their higher purpose. Understand that business objectives must include the benefit to society, without which it is impossible for their economic success to be sustainable over time. (Exit)There is no doubt that wealth creation can only be done through private sector business. Therefore, it has to broaden its mentality regarding the essential role it plays in the prosperity of a country. That is the first step of shared value: getting companies to redefine their higher purpose. Understand that business objectives must include the benefit to society, without which it is impossible for their economic success to be sustainable over time. (Exit)without which it is impossible for their economic success to be sustainable over time. (Exit)without which it is impossible for their economic success to be sustainable over time. (Exit)
Conclusions
A common way of understanding the concept of value is that each link in what Porter calls the value chain is a step that entails costs to provide the services or products to its customers, but with a different approach, since each activity adds a value in each of the links that as a whole converge into a product or service that the customer enjoys.
Shared value is defined by Porter himself as a comprehensive business model in which companies interrelate with each other, other companies and mainly society.
The need for joint problem solving goes through a set of variables that were previously seen as a sharing of the wealth of companies, today it is a model that most companies should follow if they want to sustain themselves over time and without be rejected by society.
Thesis proposal.
Shared value in the industrial area of Orizaba
Objective:
Determine the capacities to create shared value on the part of the companies of the industrial zone and the interrelation with the companies and local communities.
Thanks
To the impulse to be better as a person and as a citizen that the Technological Institute of Orizaba offers me, to my teacher who forges character, mine and that of all my colleagues and gives me that extra that I need for my training as a professional.
Bibliography
- Mendoza, MB (sf). Virtual Encyclopedia. Obtained from eumed.net:http://www.eumed.net/libros-gratis/2013/1252/modelo-michael-porter.htmlMutis, G. (sf). Leadership and management. Obtained from www.liderazgoygestion.com:http://www.liderazgoygestion.com/articulos_gm/valorcompartido.pdfPorter, ME (1994). Competitive advantage. CECSA. Porter, ME (1994). Competitive advantage. CECSA.Porter, ME (January – February 2011). Creating Shared Value. Harvard Bussines Review, http://www.hks.harvard.edu/mrcbg/fellows/N_Lovegrove_Study_Group/Session_1/Michael_Porter_Creating_Shared_Val ue.pdf.Porter, ME, & Kramer. (January – February 2011). Creating Shared Value. Harvard Bussines Review, http://www.hks.harvard.edu/mrcbg/fellows/N_Lovegrove_Study_Group/Session_1/Michael_Porter_Creating_Shared_Val ue.pdf.Rubiales, P. (July 26, 2013). The viewer.Obtained from www.elespectador.com:http://www.elespectador.com/tomalapalabra/pacific-rubiales/valor-compartido-unaestrategia-empresarial-132-articulo
It refers to the geographical concentrations of various companies that interact with each other, which would allow an increase in productivity, learning and the dissemination of knowledge in each and every one of the production units that make up the set. It is assumed that the companies that make up a cluster carry out related activities that allow external economies, one relative to the other, in aspects that have to do with services that are exchanged between them. The most important thing about this is that they want to carry out a common action that allows an increase in common productive efficiency (Mendoza)
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