Michael Porters Theory Of National Competitive Advantage.
Porter introduced the diamond model of national competitive advantage (1990) to explain why a number of countries are more competitive than others and why a number of businesses within the countries are more competitive.According to Recklies (2001), the Porter’s Diamond Model determines factors of national advantage and it suggests that the national home base of an organization plays an important role in shaping the extent to which it is likely to achieve advantage on a global scale and this home base provides basic factors, which support or hinder organizations from building advantages in global competition.Demand is a large factor in the success of a firm’s international capacity success and this is made a point in Porter’s diamond. Porter notes that nation whos consumers are not demanding is nation where the firms fail in gaining competitive advantage.
Porter’s insisted that a firms’ ability to compete depends largely upon the strength of the diamond within its home national and the assertion that national economic performance depends on this.The Porters Diamond model is a helpful tool for this analysis. Michael Porter introduced a model that allows analyzing why some nations are more competitive than others are, and why some industries within nations are more competitive than others, in his book Competitive Advantage of Nations.
The Diamond model of Michael Porter for the Competitive Advantage of Nations offers a model that can help understand the competitive position of a nation in global competition. This model can also be used for other major geographic regions.
