9 Notes of Porter's Diamond of National Advantage Global Strategy

9 Notes of Porter's Diamond of National Advantage Global Strategy

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Click to edit Master subtitle style COMPETITIVE ADVANTAGE OF NATIONS This is presentation is based on Michael E. Porter’s book: The Competitive Advantage of Nations , Free Press, 1990 Source: The presentation slides were prepared by George Yip, UCLA
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2MOR 492 Porter on Global Strategy 2 Porter’s Competitive Advantage of Nations Extends and modifies traditional theory of comparative advantage to take into account the following factors: Competitive advantage is about companies -- the importance of the national environment is providing a home base for the company Sustained competitive advantage depends upon dynamic factors -- innovation and upgrading of firm’s resources and capabilities The critical role of the national environment is its influence upon the dynamics of innovation and upgrading
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3MOR 492 Porter on Global Strategy 3 Firm Strategy, Structure, and Rival ry Fact or Conditio ns Deman d Conditio ns Related and Supportin g Industri es Source: Porter (1990) The Determinants of National Advantage
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4MOR 492 Porter on Global Strategy 4 * Human resources * Physical resources * Knowledge resources * Capital resources * Infrastructure Source: Porter (1990) Factor Conditions
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5MOR 492 Porter on Global Strategy 5 Home demand composition * Segment structure of demand * Sophisticated and demanding buyers * Anticipatory buyer needs Demand size and pattern of growth * Size of home demand * Number of independent buyers * Rate of growth of home demand * Early home demand * Early saturations Internationalization of domestic demand * Mobile or multinational local buyers * Influences on foreign needs Source: Porter (1990) Demand Conditions
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6MOR 492 Porter on Global Strategy 6 Leathe r Footwea r Leathe r Workin g Machiner y Desig n Service s Processe d Leathe r Source: Porter (1990) Parts of Footwea r Related and Supporting Industries
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7MOR 492 Porter on Global Strategy 7 Denmark Germany Italy Japan Korea Singapore Sweden Switzerland United Kingdom United States Dairy products, brewing Chemicals Lighting Cameras VCRs Port services Automobiles Pharmaceuticals Engines Electronic test and
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9 Notes of Porter's Diamond of National Advantage Global Strategy

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