International Business Systems And Porter s Diamond Model

Porter’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 economies, factor endowments comprising of land, capital, labor, advanced technology and materials as stated in Porter’s theory, a government is responsible for contributing toward a company’s physical infrastructure (Porter 1998). National Business Systems and Porter’s Diamond Model in major economies It is only through industrial effort that a firm can attain or maintain its competitive advantage. Correspondingly, a determined business system will focus on competitive advantage fundamentals such as the chief role of creativity and the scope of challenges and pressure. Such detail exposes the management of a business to perceived shortcuts to success, which are actually failures. The implementation of Porter’s Diamond attempts to provide research results with fewer costs and risks as well. Through appropriate leadership techniques suggested in the model, it is evident that the origin of competitive advantage is a firm’s management. Responsibilities involved are creating pressures forShow MoreRelatedPorters Theory of National Competitive Advantage1717 Words   |  7 PagesIntroduction Porters theory of national competitive advantage expands on basic international trade theory, which posits that nations can leverage certain advantages that they inherit to create advan tage 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;Read 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 MoreEssay about Michael Porter’s Theory1568 Words   |  7 Pagesadvantage is a better theory to be adopted by the international firms which want to select a better country for new entry. The dominance of 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 jointlyRead MoreEssay about Critically Discuss To What Extent Porte1400 Words   |  6 PagesPorter’s Diamond is a useful concept in explaining home and host location strategies of international business? Illustrate your answer with reference to at least two case companies. 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In fact, companies that compete in the same industry and core business, such as Sony, Samsung, and Philips in the audiovisual industry, or Nike, adidas, and Puma in the clothing manufacturing industry, should understand the nature of the market and analyze the key factors that differentiate each one from the othersRead MoreGerman Automobile Industry3051 Words   |  13 Pagesconcerns the German automobile industry. Combining with Porter’s diamond theory, the competitiveness of this sector is analyzed in detail. The essay is divided into two sections. In section one there is a brief outline for the German automobile industry regarding diverse factors in production, employment, export and innovation. In section two, the specific analyses for the German automobile manufacturing in terms of determinants of the diamond theory is illustrated explicitly. 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