Sophisticated and demanding local customers in Scandinavia helped push Nokia of Finland and Ericsson of Sweden to invest in cellular phone technology long before demand for cellular phones took off in other developed nations.This underscores Porter's point about how:

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Porter emphasizes the role home demand plays in upgrading competitive advantage.The characteristics of home demand are particularly important in shaping the attributes of domestically made products and in creating pressures for innovation and quality.Porter argues that a nation's firms gain competitive advantage if their domestic consumers are sophisticated and demanding.Such consumers pressure local firms to meet high standards of product quality and to produce innovative products.

Sophisticated and Demanding Local Customers in Scandinavia Helped Push Nokia