German Automobile Industry

Cars are something that almost every person has or will use in their everyday life or need to use their car to get to and from work or school everyday. Well in this paper you will learn about what technology has done to change the Automotive Industry as well as your everyday life. This paper will be focusing on the Technologies inside of the car, along with the Technologies that keep you safe and also a little bit about Self-Driving Cars. So fasten your seatbelts while you are reading this paper.

The value of this source to the topic at hand is the book’s heavy focus on the automobile’s progress over time, in the case of the pursuit of fuel efficiency and practicality over time, to the eventual issue of the environment. The limitation of this source is the book’s primary focus on the history of the

There exist classical theories of international trade which discuss the reasons why particular industries and particular economies are more competitive than the rest. In his book The Competitive Advantage of Nations, Michael E Porter argued or analyzed the broad factors which determined the competitiveness of certain economies and industries. This model is based on four nation’s specific factors and two external variables. The four cornerstones of the diamond model are the factor conditions, the demand conditions, the related and supporting industries and

There have been many different reactions towards Porter’s theory on how nations ought to compete. Some responses were validated while others rebutted his theory. Firstly, the positive response will be discussed before focusing on the criticisms of Porter’s theory. Oz (2002) implemented Porter’s Diamond model to analyse the competitive advantage of five Turkish industries and the outcome was favourable and thus validated Porter’s theory. For example, the uncompetitive Turkish automobile industry resulted in uncompetitive companies, while the presence of demanding buyers and hence intense local rivalry in Turkish construction and leather-clothing industries pushed the companies to innovate and become globally competitive. The Turkish findings by Oz thus validated Porter’s theory that indeed, competitive industries of a nation are inclined to cluster together.

Porter’s (1980) framework bases on the structure-conduct-performance paradigm (SCP) from industrial economics. The paradigm states that the performance of a business is heavily affected by the industry characteristics in which the business competes (Porter, 1981). Unlike SCP, Porter acknowledges that a business’ strategy is an important factor for the company’s success, and that industry rules may be altered by firms’ competitive strategies. Still, in Porter’s model, it is the structure of the industry that are the source of a firm’s profits, especially the balance of the competitive forces (Schoemaker, 1990).

In this framework due to Michael Porter there are two high-level stages in the creation of competitive strategy, each stage corresponding to a high-level determinant of profitability mentioned in the previous section. The first stage is the assessment of the attractiveness of the industry in which a given company is embedded based on a structural analysis of the industry. In this stage, called the five forces framework, five forces that influence industry attractiveness are identified, as well as the factors (e.g., number of competitors, size of competitors, capital requirements) that determine the intensity of each force and therefore the cumulative intensity of the five forces. The

As the rise of automobiles came about in the 20th century, the oil industry grew in response to the need for fossil fuels. The modern day automobile is in many ways different from the very first iterations of the car, however, they share one trait. The use of the internal combustion engine. While centuries ago this technology was amazing, it seems the advancements have slowed. Everyone is content with the cars of today, and why shouldn’t they be? On the

A country’s international competitiveness in output markets is a measure of its ability to increase

In the article “The Competitive Advantage of Nations” Michael Porter describes a diamond shaped relationship of forces that define a country’s potential for being competitive in a specified industry. The four points on the diamond representing the different forces are: factor conditions; demand conditions; firm strategy, structure and rivalry; and related and supporting industries. According to Porter, the four points apply pressure to each other resulting in a national

7. FIRM STRATEGY STRUCTURE & RIVALRY• Local conditions influence firm strategy• In Porters Five Forces model, low contention made an industry appealing. While at a solitary point in time a firm inclines toward less competition, as time goes on more nearby contention is better since it puts weight on firms to improve and progress. Indeed, high neighborhood contention brings about less worldwide rivalry.• Local competition strengths firms to move past essential focal points that the nation of origin may appreciate, for example, low component

In his book The Competitive Advantage of Nations Michael Porter examines modern global economy and explains the theory of competitive advantage through a reflection of a “diamond” which maintains its growth and prosperity. Porter who is considered the father of modern businesses and promoter of notions of competitiveness produced a number of books on strategic management in which he bridged the gap between national and international economics. His latest book is specifically the broadest in scope because it shifts the focus of attention from the performance of the firm to the performance of the nation whole. However, the focus of this paper discusses how a developing nation like Qatar is growing its firms’ foundations and bettering its environmental conditions

10 2.2.1. The Doubled Diamond vs. a Single National Diamond ................................. 11 2.2.2. The Role of the Multinational Enterprises (MNE’s) as Empowering Developing Countries rather than Constraining their Growth.................................. 12 3. Research Setting: Why Use Mexico to Study Porter’s Diamond? ............................... 17 4. Research Questions....................................................................................................... 19 5. Methodology ................................................................................................................. 20 5.1. Positioning the International Competitiveness of the Industry.............................. 22 5.2. Addressing the Research Questions....................................................................... 23 6. Results........................................................................................................................... 28 6.1. The Competitiveness of the Automobile Industry in Mexico................................ 28 6.2. Positioning the Industry as Internationally Competitive ....................................... 29 6.3. Using Porter’s Diamond to Assess Sources of Competitive Advantage in the Automobile Industry in Mexico: 1993-2003. ............................................................... 39 6.3.1. Factor

Competitive rivalry is the consequence of the interaction of structural factors. Rivalry between the existing competitors has the character of the race for the position by using different tactics such as the

Porter’s Diamond: The Porter’s Diamond is the model that gives reasons why some nations are more competitive than others also why some firms within nations are competitive that others.

Any country should use porter diamond theory of national advantage. It's designed to help understand the competitive advantage nations. It suggests that the national home base of any organizations are playing a supportive role in shaping the size or scoop to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support organizations from building advantages in international competition. Porter classifies four determinants: Factor Condition, Diamond Condition, Relatives & supporting and Structure, strategy & Rivalry. Egypt government acts to catalysts to improve Egypt position in a globally competitive economic environment. They found that they can create new factors such as skilled labor and high technology (Porter M., 1990). Porter's diamond model suggests threat there are inherent reasons why some nations are more competitive than others on an international market. Another factor that influence in competitive advantages such as the policies that put by government. One of the most influencer policies is (FDI) Foreign direct investment