Porters Diamond

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Strategic analysis typically focuses on two views of organization. An example where porters diamond can be used to explain a regional advantage is in germanys luxury high power car manufacturing industry for brands such as audi.



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Porter generic strategies and institutional frameworks.

Porters diamond. It affects their strategy and how they structure themselves. The porter diamond model offers an effective way for analysing the national competitiveness. Firm strategy structure and rivalry.

These views analyse the organisation without taking into consideration relationship between the organizations strategic choice ie. Porters diamond is a diagram that represents the 4 points of a diamond and highlights the 4 interrelated determinants that work as deciding factors of the national comparative economic advantage. Porters diamond model explains the factors that can drive competitive advantage for one national market or economy over another.

Porters diamond of national advantage classical theories of international trade propose that comparative advantage resides in the factor endowments that a country may be fortunate enough to inherit. This porter diamond model also known as the porter diamond theory of national advantage or porters double diamond model has been given this name because all factors that are important in global business competition resemble the points of a diamond. The industry view and the resource based view rbv.

The diamond model of michael porter for the competitive advantage of nations offers a model that can help understand the competitive position of a nation in global competition. Porters diamond model shows the four factors that affect the competitiveness of a nation and its industries. Based on the characteristics of the home country it is possible to assess the international success of the firm.

Factor endowments include land natural resources labor and the size of the local population. The national context in which companies operate largely determines how companies are created organized and managed. Porters diamond model of national competitive advantage.



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