Porters Diamond

1657 Words7 Pages
“Critically discuss to what extent Porter’s Diamond is a useful concept in explaining home and host location strategies of international business? Illustrate your answer with references to at least two case companies” The main aim of International business is to build and sustain competitiveness for economic value creation in both domestic and overseas markets (Besanko et al. 2007). Internalisation business theory however has a variety of models that can identify the environmental analysis of specific countries. These models are used for companies to internationalise and find the right location(s) overseas by taking; institutional, cultural fit and success opportunities into consideration. These models also give in-depth information on…show more content…
This shows that communication may mean tough negotiation between retailers and suppliers in order to stay competitive. The last factor is firm strategies, structure and rivalry. This factor determines the organisational structure, style of managers and the domestic competition (Porter, 1990:82). On an internalisation point of view this factor depends if the characteristics of the company matches the industry they have entered. E.Leclerc operates as an ambidextrous organization. Their strategy is to make employees feel and act like “owners” of the organization yet own no stock; the whole organization behaves like one big family yet is a money-making machine (www.strategy-business.com). Sainsbury’s owned a chain in US and Egypt but like other UK retailers they failed to expand due to the arrogance and poor preparation, failing to understand the surprising differences between US and British shoppers (The Guardian 2012). On the other hand, rivalry should be seen as positive as it creates competitive advantage, it pushes organisations to visualise trends and satisfy non-existing needs while also seeking new international opportunities. A great example would be Apple it’s iPhone, iPad etc. Looking at this model it highlights how home locations influences companies to grow and develop
Get Access