International Business Strategies Porter s Diamond Model

There are a variety of international business strategies that a company can put into practise in order to internationalise, in any given sector, big or small. This essay will discuss Porter’s diamond model and its four main determinates, as well as illustrating them with two case companies, which include one of the UK’s largest retailers, Marks and Spencer, as well as the USA’s, Walmart. The main objective is to discuss the model to determine if it is of any use in terms of explaining home and host location strategies. Porter quotes â€Å"A nation’s competitiveness depends on the capacity of its industry to innovate ad upgrade†¦ In a world of increasingly global competition, nations have become more, not less, important† (Porter, 73). Porters model, or sometimes to referred to as Diamond Model, is a strategy that companies are able to utilise for an analysis of their competitive advantage. The strategy was introduced by Michael Porter, who published his findings in a book â€Å"The Competitive Advantage of Nations† in 1990. Porter noted down a collection of questions: why are certain companies based in certain nations capable of consistent innovation? Why do they ruthlessly pursue improvements, seeking an ever more sophisticated source of competitive advantage? And why are they able to overcome the substantial barriers to change and innovation that so often accompany success? Therefore these questions allowed for the formation of four key determinants and external variables that giveShow MoreRelatedDiscuss in Detail the Application of Professor Michael Potters Diamond Model in the Kenyan Vision 2030: Advantages and Implications1124 Words   |  5 PagesBibliography Alan M. Rugman and Alain Verbeke1993, [35(4)] How to Operationalize Porter’s Diamond of International Competitiveness; Thunderbird International Business Review (ISSN 1096-4762) Wiley United States Charles W.L. Hill 2008, International Business; McGraw Hill United States ISBN 0073381349 John D. Daniels, Lee H. Radebaugh and Daniel P. Sullivan 2006, International Business: Environments and Operations; Prentice Hall United States ISBN 0131869426 Michael E. Porter1990, Competitive AdvantagesRead MoreEssay about Michael Porter’s Theory1568 Words   |  7 Pagesadvantage is a better theory to be adopted by the international firms which want to select a better country for new entry. The dominance of Porter’s theory are its comprehensiveness, the dynamic Diamond theoretical system and analysis form both inductive and deductive sides. Meanwhile, it is at a disadvantage in its assumption. Thus, this essay will explore both sides of Porter’s theory. Porters model includes four key elements. The Diamond model is depicted as figure 1, where the four forces jointlyRead MorePorters Diamond1657 Words   |  7 PagesPorter’s Diamond is a useful concept in explaining home and host location strategies of international business? Illustrate your answer with references to at least two case companies† The main aim of International business is to build and sustain competitiveness for economic value creation in both domestic and overseas markets (Besanko et al. 2007). Internalisation business theory however has a variety of models that can identify the environmental analysis of specific countries. These models are usedRead MorePorters Theory of National Competitive Advantage1717 Words   |  7 PagesPorters theory of national competitive advantage expands on basic international trade theory, which posits that nations can leverage certain advantages that they inherit to create advantage for themselves on international markets. 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In fact, companies that compete in the same industry and core business, such as Sony, Samsung, and Philips in the audiovisual industry, or Nike, adidas, and Puma in the clothing manufacturing industry, should understand the nature of the market and analyze the key factors that differentiate each one from the othersRead MoreThe Impact Of International Business On The Domestic And Overseas Marke ts2110 Words   |  9 PagesThe importance of international business is to withstand and build competitions for the creation of economic value both in the domestic and overseas markets . however, international business has a variation of models that can be identify the environmental analysis of some countries. internationalizatioon of companies can be achieved by using these models to finf the right location overseas by taking the institutional, cultural fit and success opportunities into concern. These models also give an inRead MoreHow Can A Company Measure Its Competitive Advantage?1561 Words   |  7 Pagesmarket the same products compared to the competitors at a lower cost through â€Å"price, or providing a higher quality through differentiation that costs more than the competitors product. In fact, companies that compete in the same industry and core business, such as Sony, Samsung, and Philips in the audiovisual industry, or Nike, adidas, and Puma in the clothing manufac turing industry, should understand the nature of the market and analyze the key factors that differentiate each one from the othersRead MoreGerman Automobile Industry3051 Words   |  13 Pagesconcerns the German automobile industry. Combining with Porter’s diamond theory, the competitiveness of this sector is analyzed in detail. The essay is divided into two sections. In section one there is a brief outline for the German automobile industry regarding diverse factors in production, employment, export and innovation. In section two, the specific analyses for the German automobile manufacturing in terms of determinants of the diamond theory is illustrated explicitly. Furthermore, it is imperative