Tutorial 4: Porter\'s Diamond, Us Offshore & China PDF

Preview

Summary

Answers to the questions for the case study of tutorial 4, about Porter's Diamond, Us Ofshore and China....

Description

TUTORIAL 4: PORTER’S DIAMOND – US OFSHORE – CHINNA

Competitive Advantages of Nations Michael Porter created the “Diamond Model” to explain why certain countries achieve international business success in particular industries and why individual countries are successful in some industries, but unseccessful in others. Porter contends that there are 4 key attributes of individual countries wich shaoe the domestic cometitive environment and that theses attributes either promote or impede the creation of competitibve advantage in international business. 1.- Factor Conditions. The nation’s position in factors of production, such as skilled labour or infraestructure, necessary to compete in a given industry. Can be “basic factors” or “advanced factors”. 2.- Related & Supporting Industries. The presence or absence in the nation of suppliers industries and related industries that are internationally competitive. 3.- Demand Conditions. The nature of home demand for the industry’s product or service. 4.- Firm Strategy, Structure & Rivalry. The conditions in the nation governing how companies are created, organised and managed, and the nature of domestic rivalry.

EXAMPLE: Why London is on of the financial services centre? FC:

Skills as accountants. Location. Economy. International relations.

RST:

Oil market -> “Brent Crude”. Money market. Metals market. Precious metal market. Agriculture products. Legal sistem.

DC:

Financial services.

FSSR: Deregulated. Rules.

THE ITALIAN CREAMIC TILE INDUSTRY FC:

History. Location. Clay. Labour.

RSI:

Suporting industries -> machines. Supply chain -> distribution channel. Design industry.

DC:

Local buyes.

FSSR: Many small and medium enterprises -> very competitive industry. Dynamic. Innovative. Family....