Discuss in Detail the Application of Professor Michael Potter's Diamond Model in the Kenyan Vision 2030: Advantages and Implications

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Bibliography 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 Advantages of Nations; Free Press United States ISBN 0684841479 Robert M. Grant 1991 [12(7)] Strategic Management Journal; Porter’s Competitive Advantages of Nations: an assessment (ISSN 0143-2095) Wiley United States BACKGROUND Porter’s…show more content…
ADVANTAGES OF THE MODEL 1. Porter’s Diamond model explains why corporations domiciled in certain countries are successful in penetrating foreign markets. This model can be used to assess competitive advantage of the national environment in which individual business units, organizations, or industries operate. 2. The model helps to understand the dynamic interplay between a firm’s corporate strategy and the competitive advantages of a country – the ‘habitat’ in which organizations operate. This model is an addition to Porter’s five forces model dealing with industry structure. The diamond model emphasizes that a firm should only internationalize when it has a strong position in its home market. 3. The model provides an explanation of why industry clusters are relevant. 4. Governments can play an active role in supporting the development of clusters countering the notion of public laissez-fair. 5. The model shows that apart from inter-firm rivalry, cooperation is a vital component of corporate strategy. Companies should form strategic alliances, especially with organizations in related and supporting industries. 6. The model explains in part the “resource curse” -- why a large natural resources base is not sufficient to develop industrial might. Porter 's Diamond Data on the "competitiveness of nations" can be found on

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