In Certain Cases Porter's Diamond of Competitive Advantage May Not Be an Appropriate Framework for the Analysis of a Nation's Sources of Competitive Advantage.

Hill (2008) describes Michael Porter’s “Competitive Advantage of Nations Theory of posits that within specific industries, clusters of expertise result from highly competitive national environments” (p. 616). Michael Porter created the theory of competitive advantage when he began to realize the economic reality could no longer be explained based on the comparative advantage theory only (Laurentiu, n.d.). The competitive advantage theory is based on several determinants:

In addition, the internationalisation is the strategy to occupy the foreign market step by step. Also, the porter’s competitive advantages theory is to analysis the strategies of global business. They could divide to three strategies: over cost leading, diversity, and market focus strategy (Passemard& Calantone, 2000). The cost leading strategy focus on establish efficient scale production facility and minimize the research and advertising cost. The diversity strategy focus on introduce some unique product in whole industry. But, this strategy will with a high cost price. The focus strategy is attack of a particular customer group or specialist regional market, its purpose to design the service for a particular target. Consequently, the companies need to consider the internal and external factor condition, such as: factor condition, demand condition, related and supporting industries condition, and firm strategy and rivalry. They are called diamond system. This dynamic system gives the company a standard to measure theirs advantage and disadvantage before they enter foreign market. Moreover, the specific advantage in Internationalisation of Production is give companies a new choose for exhausted market (Strange,S. 1992). In an international environment, the companies will face more uncertain and unequal condition than home market, therefore the companies need keep the attention of more factors:

Mexico’s economy is mixed. The government, its agencies and government-owned or –controlled companies are anticipated to lessen their typically dominant position in the areas of public utilities, telecommunication, and petroleum. Private enterprise is the primary factor with regard to mining, manufacturing, entertainment, commerce, and the service industries. This also includes construction and tourism as well. Foreign investment is mostly found in the industries of mining, manufacturing, and the financial sectors.

The term competitiveness defines the ability of a region to export more than its imports while including all “terms of trade” to reflect government legislation and import barriers. In other words, according to the world competitiveness report, competitiveness is “… the ability to design, produce, and market goods and services, the price and non- price characteristics of which form a more attractive package than those of competitors.” (Pg3.) Each nation has different competitiveness level, which relies on multitude factors such as; raw materials, innovative technologies, energy prices, the type of economy, legislations, and the exchange rate fluctuations. Nevertheless, the prosperity of countries depends on the nation’s competitiveness status.

Mexico has long been a key asset to US MNCs. With an immediate proximity to the US via rail, air, and shipping routes, transportation of products between the two countries is mostly hassle-free. Combined with the elimination of tariffs and trade taxes from the integration of the North American Free Trade Agreement (NAFTA), they no longer pose an economic price on outsourcing assembly or manufacturing to Mexico. Consequently, trade with the US and Canada has tripled since NAFTA 's implementation in 1994. MNCs in multiple industries have latched on to this.

The purpose of this paper is to evaluate Mexico and the possibility of internationalization. In order to make an informed decision about such a country, the benefits, costs and risks of the venture must be considered. In this paper, we will analyze Mexico 's economy, political structure, culture and management techniques. By examining these factors an American firm should be able to make a decision based on Mexico and the type of business considering a move into Mexico. This paper will show that a company can not internationalize into Mexico due to the lower costs of labor only. A more all-encompassing approach is necessary to make a proper decision. A study of all aspects must be done and then the decision can be

Michael Porter investigated why nations have a competitive advantage in specific industries his findings saw two basic types of competitive advantage that firms could pose low cost or differentiation. If you combine the two types of competitive advantage and allow room for a way in which firm wish to achieve them this will lead to three generic strategies which will achieve higher average performances in industries: cost leadership, differentiation and focus.

Mexico is one of the largest and most open economies in the world. It has only a handful of strategic sectors or industries not yet open to private investment. Mexico is forecasting an economic growth rate between 2% and 3% over the next fiscal year so it is important to understand the different aspects of what is involved with doing business in Mexico. Basic geographical information, cultural diversity, and proper business etiquette will all play a large role in business operations.

Today, Mexico is the twelfth largest economy in the world. Mexico’s economy has expanded and Mexico is a signatory to major deals, such as North American Free Trade Agreement and Trans-Pacific Partnership. Additionally, Mexico is a member of the Organisation for Economic Cooper and Development (OECD). Mexico is an active o member of the world’s economy. It is important to realize that the country has made significant economic progress. However, Mexico faces trouble as it attempts to become a developed economy. In this paper, I will outline the economic history of Mexico and its transition towards neoliberalism from import substitution and how the government plays a smaller role in the economy. I will look

Aumentar el volumen de producción y venta, y crecimiento: Cemex tenía necesidad de expandirse globalmente, dado que su mercado doméstico en México es relativamente pequeño y que en 1989, la empresa ya dominaba 2/3 de la capacidad productiva donde le quedaba poco espacio para crecer . Además, la entrada de Holderbank en México al principio de los 90`s le generaba una fuerte presión competitiva, siendo que esa empresa ya tenía una presencia global importante.

“Porter’s five forces”: Introduction. “Porter’s five forces” is widely applied in today’s business world. Harvard Professor Michael E. Porter’s first HBR article “How competitive forces shape strategy” was published in 1979. It became revolutionary in the field of strategy. Porter’s subsequent work has brought big changes to the study of competitive strategy for corporations, regions, and nations. With assistance from his colleagues from Harvard Business School, Porter continues to update and extend his classic work, providing practical guidance for

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

ASSESSING THE POWER OF PORTER'S DIAMOND MODEL IN THE AUTOMOBILE INDUSTRY IN MEXICO AFTER TEN YEARS OF NAFTA

The same critics that Zahra has addressed to Oviatt and McDougall’s analysis applies on his list of factors contributing to the INV’s competitive advantage. We should acknowledge that every country has some economic or cultural specificity; therefore there are some universal business rules which apply on the entire global market. The traditional firms, who possesses years of local market experience, ownership and abundance of their resources are more qualified to compete on the international level.

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