Scribd Logo
Upload

Welcome to Scribd!

  • National Competitive Advantage: Porter's Diamond

    Uploaded by

    Ghazi Butt
    16 views3 pages
    Porter's Diamond model identifies four attributes that can promote or impede competitive advantage for nations in particular industries: factor endowments, demand conditions, related and supporting industries, and firm strategy/rivalry. Factor endowments include basic factors like natural resources or advanced factors like skilled labor. Demand conditions refer to the nature of domestic demand, with sophisticated local customers pushing firms to develop innovative, high-quality products.

    Original Description:

    Original Title

    jasim

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Porter's Diamond model identifies four attributes that can promote or impede competitive advantage for nations in particular industries: factor endowments, demand conditions, related and supporting industries, and firm strategy/rivalry. Factor endowments include basic factors like natural resources or advanced factors like skilled labor. Demand conditions refer to the nature of domestic demand, with sophisticated local customers pushing firms to develop innovative, high-quality products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    16 views3 pages

    National Competitive Advantage: Porter's Diamond

    Uploaded by

    Ghazi Butt
    Porter's Diamond model identifies four attributes that can promote or impede competitive advantage for nations in particular industries: factor endowments, demand conditions, related and supporting industries, and firm strategy/rivalry. Factor endowments include basic factors like natural resources or advanced factors like skilled labor. Demand conditions refer to the nature of domestic demand, with sophisticated local customers pushing firms to develop innovative, high-quality products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 3

    National Competitive Advantage: Porters Diamond

    Porter (1990) tried to explain why a nation achieves international success in a particular industry Porter identified four attributes he calls the diamond that promote or impede the creation of competitive advantage 1. Factor endowments 2. Demand conditions 3. Related and supporting industries 4. Firm strategy, structure, and rivalry In addition, Porter identified two additional variables (chance and government) that can influence the diamond in important ways

    Factor Endowments
    A nation's position in factor endowments (factors of production) can lead to competitive advantage These factors can be either basic (natural resources, climate, location) or advanced (skilled labor, infrastructure, technological know-how) Basic factors can provide an initial advantage that is then reinforced and extended by investment in advanced factors

    Demand Conditions
    Demand conditions refers to the nature of home demand for an industrys product or service Demand conditions influence the development of capabilities Sophisticated and demanding customers pressure firms to be more competitive and to produce high quality, innovative products.

    You might also like