Porters Diamond Model - 3545 Words

University Of Greenwich BA(hons) in business studies Module name : international business management module Teacher : Ian Norman student Name : Mokbul Hossain Student Id : 000762547 Question: As a management consultant advising a country of your choice, explain how u can use Porter s Diamond model to evaluate and improve the nation s competitive position. Introduction Business world is getting complicated day by day .Companies want to do business like participating in the competition for profit or market share. We are now at globalisation era where a local company is to compete with international company (Daniels et al, 2007). Challenge for marketing strategy is to find a method of earn a†¦show more content†¦He also stated that general factors, mainly unskilled labour and raw materials are easy to acquire and cannot lead to sustainable competitive advantage. Specialized factors are difficult to replicate but require significant amount of investment. Certain disadvantage in factors of production compels innovation which often leads to national comparative advantage. Hence Porter (1998) distinguished the basic and advanced factors. 2. Demand Conditions – This refers to the nature of local demand of an industry’s products and services. Both aspects of demand, quality and quantity are to be considered on an equal note. This is particularly true in cases where local demand of a product is higher than that in foreign markets. In such cases companies devote more effort and investment to that particular product to gain a competitive advantage which often leads to firms commencing export of that product. This also refers to increasing buyer pressure on requirement for high quality and service in industries. This pressure on industries compels them to enhance standard to the level that allows them to compete on an international scale. This is related to a sophisticated domestic market as it leads to firms producing superior quality products which also enable local firms to remain competitive in the global market. 3. Related and SupportingShow MoreRelatedThe Diamond Model by Michael Porter1117 Words   |  5 PagesMichael Porter developed Porter’s Diamond, also known as The Diamond Model, in 1990 in his book ‘The Competitive Advantage of Nations’. The four determinants of Porter’s diamond must operate as a system rather than individually. It provides the answers to ‘Why does nation achieve international success in a particular industry?’ (Porter, 1998:71). Despite the universal application of Porter’s diamond framework, many critics argued that the model is flawed. This essay aims to discuss the differentRead MoreInternational Business Strategies : Porter s Diamond Model1391 Words   |  6 Pagesinternationalise, in any given sector, big or small. This essay will discuss Porter’s diamond model and its four main determinates, as well as illustrating them with two case companies, which include one of the UK’s largest retailers, Marks and Spencer, as well as the USA’s, Walmart. The main objective is to discuss the model to determine if it is of any use in terms of explaining home and host location strategies. Porter quotes â€Å"A nation’s competitiveness depends on the capacity of its industry to innovateRead MoreInternational Business Systems And Porter s Diamond Model1258 Words   |  6 PagesPorter’s Diamond Model provides companies with four reliant factors that fully depend on the state of each other to achieve success within a competitive environment. However, Curran (2001) claims that Porter’s Diamond Model does not fully explain a country’s competitive advantage since only two factors provide evidence of their competitive position. The used factors are company rivalry, strategy, and factor endowments. With reference to the competitive positions of countries within major economiesRead MorePorter s Diamond Model : Case Study1405 Words   |  6 PagesPorter’s D iamond Model: The industry has grown very rapidly in the last decade due to intense competition and was exposed to immense technological advancement possibilities as well. Considering the growth rate and current market state; the telecommunications of Bangladesh has the following implication of Porter’s diamond model, which is further explained below in details: Factor Endowment: 1) Human Resources- Bangladesh is famous for providing cheap labor which comes due to highRead MoreIn Certain Cases Porters Diamond of Competitive Advantage May Not Be an Appropriate Framework for the Analysis of a Nations Sources of Competitive Advantage.1621 Words   |  7 Pagestool of the book is the diamond of competitive advantage (figure 1). This model is based on four country specific determinants and two external variables. Porters four determinants and two outside forces interact in a diamond of competitive advantage, with the nature of a countrys international competitiveness depending upon the type and quality of these interactions. However, because it is fundamentally a home-based model of international competitiveness, the diamond theory is criticized byRead MoreDiscuss in Detail the Application of Professor Michael Potters Diamond Model in the Kenyan Vision 2030: Advantages and Implications1124 Words   |  5 PagesBibliography Alan M. Rugman and Alain Verbeke1993, [35(4)] How to Operationalize Porter’s Diamond of International Competitiveness; Thunderbird International Business Review (ISSN 1096-4762) Wiley United States Charles W.L. Hill 2008, International Business; McGraw Hill United States ISBN 0073381349 John D. Daniels, Lee H. Radebaugh and Daniel P. Sullivan 2006, International Business: Environments and Operations; Prentice Hall United States ISBN 0131869426 Michael E. Porter1990, Competitive AdvantagesRead MorePorters Diamond1657 Words   |  7 PagesPorter’s Diamond is a useful concept in explaining home and host location strategies of international business? Illustrate your answer with references to at least two case companies† The main aim of International business is to build and sustain competitiveness for economic value creation in both domestic and overseas markets (Besanko et al. 2007). Internalisation business theory however has a variety of models that can identify the environmental analysis of specific countries. These models are usedRead MoreThe Concept Of National Competitiveness1492 Words   |  6 Pagesgame. Harvard’s Michael Porter approaches the subject from a different view, asserting that defining competitiveness as gaining a trade surplus is not appropriate. ( Kitson, Martin, Tyler, 2004). Porter argues that expanding exports through a weaker currency and low wages while importing sophisticated goods that the nation cannot produce competitively may create a trade surplus but will lower the standard of living in the nation( Kitson, Martin, Tyler, 2004). Porter breaks competitiveness downRead MoreEssay about Michael Porter’s Theory1568 Words   |  7 Pagesof Porter†™s theory are its comprehensiveness, the dynamic Diamond theoretical system and analysis form both inductive and deductive sides. Meanwhile, it is at a disadvantage in its assumption. Thus, this essay will explore both sides of Porter’s theory. Porters model includes four key elements. The Diamond model is depicted as figure 1, where the four forces jointly constitute a firms global competitiveness in a given industry ( Porter,1990) Firm strategy, structure, and rivalry Demand conditions Read MorePorters Theory of National Competitive Advantage1717 Words   |  7 Pagesthat they inherit to create advantage for themselves on international markets. What Porter contends is that there are advanced factor endowments that nations can cultivate in order to give them competitive advantages in international trade. These advanced factor endowments are firm strategy, structure and rivalry; factor conditions; demand conditions; and related and supporting industries (QuickMBA, 2010). Porter contends that nations cans specifically cultivate skilled labor, a strong technology