Professional Documents
Culture Documents
Diamond model
From Wikipedia, the free encyclopedia
The Porter diamond[1] The diamond model is an economical model developed by Michael Porter in his book The Competitive Advantage of Nations, where he published his theory of why particular industries become competitive in particular locations.[2]
Factor conditions are human resources, physical resources, knowledge resources, capital resources and infrastructure.[2] Specialized resources are often specific for an industry and important for its competitiveness.[2] Specific resources can be created to compensate for factor disadvantages. Demand conditions in the home market can help companies create a competitive advantage, when sophisticated home market buyers pressure firms to innovate faster and to create more advanced products that those of competitors.[2] Related and supporting industries can produce inputs which are important for innovation and internationalization.[2] These industries provide cost-effective inputs, but they also participate in the upgrading process, thus stimulating other companies in the chain to innovate.[2] Firm strategy, structure and rivalry constitutes the fourth determinant of competitiveness.[2] The way in which companies are created, set goals and are managed is important for success.[2] But the presence of intense rivalry in the home base is also important; it creates pressure to innovate in order to upgrade competitiveness.[2] Government can influence each of the above four determinants of competitiveness.[2] Clearly government can influence the supply conditions of key production factors, demand conditions in the home market, and competition between firms.[2] Government interventions can occur at local, regional, national or supranational level.
[2]
Chance events are occurrences that are outside of control of a firm.[2] They are important because they create discontinuities in which some gain competitive positions and some lose.[2]
The Porter thesis is that these factors interact with each other to create conditions where innovation and improved competitiveness occurs.[2]
Internationalization
[edit] References
1. ^ Traill, Bruce; Eamonn Pitts (1998). Competitiveness in the Food Industry. Porter (1990, p. 127). Springer. p. 19. ISBN 0751404314. http://books.google.com/books?id=g_iw4ocyAgC&printsec=frontcover#PPA19,M1. 2. ^ a b c d e f g h i j k l m n o p q r s t u Traill, Bruce; Eamonn Pitts (1998). Competitiveness in the Food Industry. Springer. pp. 301. ISBN 0751404314. http://books.google.com/books?id=g_iw4ocyAgC&printsec=frontcover#PPA17,M1.
Views
Namespaces
Variants
Actions Search
Top of Form
Special:Search Search
Bottom of Form
Navigation
Toolbox
Main page Contents Featured content Current events Random article Donate Help About Wikipedia Community portal Recent changes Contact Wikipedia What links here Related changes Upload file Special pages Permanent link Cite this page Create a book Download as PDF Printable version Catal Deutsch This page was last modified on 26 May 2010 at 21:08. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. See Terms of Use for details.
Interaction
Print/export
Languages