Porters Diamond Model

3545 Words15 Pages
University Of Greenwich BA(hons) in business studies Module name : international business management module Teacher : Ian Norman student Name : Mokbul Hossain Student Id : 000762547 Question: As a management consultant advising a country of your choice, explain how u can use Porter 's Diamond model to evaluate and improve the nation 's competitive position. Introduction Business world is getting complicated day by day .Companies want to do business like participating in the competition for profit or market share. We are now at globalisation era where a local company is to compete with international company (Daniels et al, 2007). Challenge for marketing strategy is to find a method of earn a…show more content…
He also stated that general factors, mainly unskilled labour and raw materials are easy to acquire and cannot lead to sustainable competitive advantage. Specialized factors are difficult to replicate but require significant amount of investment. Certain disadvantage in factors of production compels innovation which often leads to national comparative advantage. Hence Porter (1998) distinguished the basic and advanced factors. 2. Demand Conditions – This refers to the nature of local demand of an industry’s products and services. Both aspects of demand, quality and quantity are to be considered on an equal note. This is particularly true in cases where local demand of a product is higher than that in foreign markets. In such cases companies devote more effort and investment to that particular product to gain a competitive advantage which often leads to firms commencing export of that product. This also refers to increasing buyer pressure on requirement for high quality and service in industries. This pressure on industries compels them to enhance standard to the level that allows them to compete on an international scale. This is related to a sophisticated domestic market as it leads to firms producing superior quality products which also enable local firms to remain competitive in the global market. 3. Related and Supporting
Open Document