Porters Diamond Case Study Porter's Diamond

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Porter’s diamond Porters and his team studied 100 industries in 10 nations to analyze the reason for a nation’s success in a particular industry. The reason for this is because some nations succeed and other fails in international competition. Porter’s speculate that four major attributes of a nation shape the environment in which local firms compete and these attributes promote or slow down the creation of competitive advantage. (Hill C. W., 2011) These attributes are: • Factor endowments • Demand conditions • Firm strategy structure and rivalry • Related and supporting industries Factor Endowments A nation’s position in factors (basic/advanced factors) of production such as skilled labor or the infrastructure necessary to compete in …show more content…

Therefore innovation is the leadership in the automobile industry in Germany. As an example, BMW has a page on their website where people can submit their ideas. If BMW decide to pursue one of the ideas that come from outside the firm, they will contact the person in this case the inventor to work on the idea that was presented and that had led to manufacturing and producing very high quality cars. Transportation is very important in the automobile industry. The government is involved in because they do not want manufactures transporting cars on highway due to environmental concerns. Therefore the government is pushing the manufactures to use the existing railroads as the main transportation in Europe. Germany has a well structured and maintain railroad connect with a network of ports and delivery point throughout Europe which lead them to a huge advantage with this transportation structure. (Bitonto, 2012-2014) Related and supporting industries The presence or absence of supplier industries and related industries that are internationally competitive. (Hill, …show more content…

Organizations are becoming more innovative when it comes to the circular economy. They are working towards having 0% waste, minimizing their carbon footprint, reducing the greenhouse effect and even using renewable energy as appose to non-renewable energy such as fossil fuel. Wind energy plays an important role in the German economy. For instance, in 2011, the investments reached the amount of 2.95 billion EUR and there were more than 100,000 people working in this business. (IEA Wind,

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