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Recommended: Critique of porters diamond model

Michael Porter’s ‘Diamond’ Model is a method which comprehensive the national competitive advantage that one nation has over another by looking at the role in a globally competitive field and predicts the future direction industries (Grant, 2010). It explains why particular industries become competitive in certain nations (Grant, 2010). This paper is going to presents an overview of the International competitiveness in Michael Porter’s ‘Diamond’ model. In order to analyses the various types of business structures dealing with individual business in Australia. Also, will providing a broad view of Michael Porter’s ‘Diamond’ model in terms of the four essential elements within other two external variables. The four primary competitive determinants are factor conditions, demand conditions, related and supporting industries, firm strategy, structure and rivalry. Moreover, the other two variables are the role of chance and the role of government (Dicken, 2011). This essay will mention all this elements to identify the competitiveness of the key business sectors in Australia which given rise to internationally competitive. Finally, to conclude by the current competitive advantage and the success factors related to the increasing globalisation of the industry in Australia with recommendation.
2. Background
From present phenomenal, engaging in global economic competition through different countries, it is important to gain a competitive advantage by enhance the country’s international trading position (Dicken, 2011). Australia is an island, surrounded by water. It is located on the smallest continent in the world. It is the sixth largest country in the world (Chinchilla and Las Heras et at., 2010). The theory of Michael Porter’s ‘Diamond’ ...

... middle of paper ...

...ralia cannot guarantee the future prices and margins, as they are today, cost competitiveness is crucial to attract new investment. According to Campbell and Edgar 2011 ranked against competing producers in the thermal coal, copper and nickel markets, more than half of Australia’s mines have costs above global averages. Therefore, Australia is no longer the cost competitive in mineral industry. On the other hand, for Australia wool industry still have the cost competitive. As they have the original competitive edge of produce products like UGG in a lower price production with higher quality and selling at high price level into variety countries (Kirzner, 1997). In reality, the role of chance is bidirectional, it is usually at the same time when the other countries gain the competitive advantage, then it will loss of the original competitors advantage in own country.

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