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Essay on Porter's Diamond Model

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

SALVADOR BARRAGAN
Master in Business Administration, IPADE Business School, 1996 BSc in Industrial Engineering, Universidad Panamericana, 1994

A Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfilment of the Requirements for the Degree

MASTER OF SCIENCE IN MANAGEMENT

Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA

© Salvador Barragán, 2005

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Abstract

It has been ten years since the signature of the NAFTA agreement among Canada, U.S., and Mexico. For Mexico, this was a decisive step away from a protectionism model toward a
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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
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