International Business Strategies : Porter 's Diamond Model

1391 WordsDec 11, 20146 Pages
There are a variety of international business strategies that a company can put into practise in order to internationalise, 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 “A nation’s competitiveness depends on the capacity of its industry to innovate ad upgrade… In a world of increasingly global competition, nations have become more, not less, important” (Porter, 73). Porters model, or sometimes to referred to as Diamond Model, is a strategy that companies are able to utilise for an analysis of their competitive advantage. The strategy was introduced by Michael Porter, who published his findings in a book “The Competitive Advantage of Nations” in 1990. Porter noted down a collection of questions: why are certain companies based in certain nations capable of consistent innovation? Why do they ruthlessly pursue improvements, seeking an ever more sophisticated source of competitive advantage? And why are they able to overcome the substantial barriers to change and innovation that so often accompany success? Therefore these questions allowed for the formation of four key determinants and external variables that give
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