MARKETING
IM Diamond Model.pptx

The success of a market also depends on the presence

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The success of a market also depends on the presence of suppliers and related industries within a region. Especially suppliers are crucial to enhancing innovation through more efficient and higher-quality inputs. A nation’s companies benefit most when these suppliers themselves are, in fact, global competitors.
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EXAMPLES We can for example see this in Silicon Valley, where all kinds of tech-giants and tech-start-ups are clustered in order to share ideas and stimulate innovation. Tiles Industry The enamel production unit was available. The glazes production was also favorable. These two were the main composition of producing tiles. This reduces the Transportation cost.
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FIRM STRATEGY, STRUCTURE AND RIVALRY The national context in which companies operate largely determines how companies are created, organized and managed: it affects their strategy and how they structure themselves. Domestic rivalry is instrumental to international competitiveness, since it forces companies to develop unique and sustainable strengths and capabilities.
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EXAMPLES A good example for this is the Japanese automobile industry with intense rivalry between players such as Nissan, Honda, Toyota, Suzuki, Mitsubishi and Subaru. Because of their own fierce domestic competition, they have become able to more easily compete in foreign markets as well. Tile Industry Low entry barriers to market in the tile industry Rivalry became very intense Breakthroughs in both product and process technologies
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GOVERNMENT Governments can play a powerful role in encouraging the development of industries and companies both at home and abroad. Governments finance and construct infrastructure (roads, airports) and invest in education and healthcare. Moreover, they can encourage companies to use alternative energy or alternative environmental systems that affect production. This can be effected by granting subsidies or other financial incentives.
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CHANCE Michael Porter also indicates that in most markets chance plays an important role. This provides opportunities for innovative companies that are not afraid to start up new operations.
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  • Fall '18
  • Competitiveness, Porter Diamond,  Companies gain advantage,  Michael Porter

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