How Convincing Is Porter's Model of National Competitive Advantage in Essay

How Convincing Is Porters Model of National Competitive Advantage in Explaining the Workings and Achievements of Major Nation - search ExampleThis research will begin with the statement that world-wide free-enterprise(a)ness of different countries is a great concern on governments and organizations. Countries do their best in order to ensure that they remain competitive in the inter republical market. The interest on the competitiveness of countries has led to debates on the understanding and the true meaning of the international competitiveness of different countries. The purpose for the debates is due to the assumptions that underlie the theories of charge that the competitiveness of firms may be transferred to countries. This was popularized by porter according to his diamond framework. Corporate strategies should be looked at from a worldwide context. In spite of any given organization not having any plans of exporting or importing any goods directly. The management team of t he organization is supposed to consider the international environments. This is because the action that the different organizations make on such issues as the competitors, sellers, buyers, substitute providers and the persons joining the market commonly have a great influence on the domestic market. Michael Porter came up with a mannequin that may be used to analyze the reasons as to why some nations may be more competitive compared to others and some given industries may be more competitive inwardly a nation compared to others. This ride may be used as a factor of determining national advantage and it is mostly referred to as the Porters diamond. The model suggests that an organizations national home base plays a great role in defining the extent that the organization is likely to be successful in the global scale as well as having a competitive advantage. The home base is able to provide some basic factors that may act as support for success and may at time hinder some organiz ations in building advantage grounds in a global competition. This model distinguishes four different determinants. The first determinant is the factor condition. This is the situation in a given country based on the factors of production such as infrastructure and skilled labor which may be relevant to make the country competitive in some industries. These factors may be placed in groups that include human resources, material resources, knowledge resource, infrastructure and capital resources. These factors also include research quality done by universities, liquidity of the national birth market or deregulation of the labor market. These factors may provide some advantage in the market and may act as a competitive advantage. The second condition is the home demand conditions. This condition describes the amount of home demand that the services and products produced in a given country are demanded within the country. The demand at home may influence the factor conditions. It helps shape the direction that the product development and innovation take. This model states that the demand within a country may shape the competitiveness of the country in the global market. The third condition is the supporting and think constancy. When a country has one industry that is successful, it may reinforce internationalization and innovation in the industry at a later stage on the value system. Both the supplying industries and the related industries play a great role in a countrys competitiveness. These industries may coordinate some given activities together in the market, curiously those that are related, which will in turn offer competitive advantages. The last condition is the structure, strategy and rivalry of the firm. In different nations, some factors such as management structures, interaction between companies and working morale may be shaped differently. This may provide some disadvantages and advantages for particular industries.