Porter's Diamond
Porter’s Diamond
Benedictine University
International Business
Professor Samir Moussalli
July 21, 2013
Porter’s Diamond The industry that is most interesting to me is the coffee industry. It is a known fact that 90 percent of the world’s coffee production takes place in developing countries. (www.businessinsider.com) The country that ranks number one in coffee production is Brazil. While Finland drinks the most coffee per capita in the world, Brazil ranks number thirteen. (www.businessinsider.com) The two types of coffee beans are Arabica and Robusta. “Arabica is the more common type of bean grown (70 percent of coffee is Arabica), and it's considered more flavorful. Robusta is hardier and cheaper, most commonly seen in instant coffee jars” (www.businessinsider.com). When we consider the Porter’s Diamond, the factor conditions in Brazil are numerous. “Porter theorizes that four broad attributes of a nation shape the environment in which local firms compete, and these attributes promote or impede the creation of competitive advantage. The attributes are factor endowments, demand conditions, relating and supporting industries, and firm strategy, structure, and rivalry” (Hill, 2011) The land in Brazil, occupying more than fifty percent of South America, is the fifth largest country in the world. (www.slideshare.net) The country’s natural resources are iron ore, Bauxite, rubber and seafood. The soil in Brazil is so rich they are able to grow any type of crop. (www.slideshare.net) Along with being the top exporter of coffee, Brazil also exports soya bean, rice, tomatoes, jute and cotton. Banana and pineapples are grown more in Brazil, than in any other country. (www.slideshare.net) “Labor in Brazil is cheaper than most of European and North American countries” (www.slideshare.net). The demography of Brazil is mix with European, African, and Amerindian. A very diverse population that gives Brazil a competitive advantage over
Benedictine University
International Business
Professor Samir Moussalli
July 21, 2013
Porter’s Diamond The industry that is most interesting to me is the coffee industry. It is a known fact that 90 percent of the world’s coffee production takes place in developing countries. (www.businessinsider.com) The country that ranks number one in coffee production is Brazil. While Finland drinks the most coffee per capita in the world, Brazil ranks number thirteen. (www.businessinsider.com) The two types of coffee beans are Arabica and Robusta. “Arabica is the more common type of bean grown (70 percent of coffee is Arabica), and it's considered more flavorful. Robusta is hardier and cheaper, most commonly seen in instant coffee jars” (www.businessinsider.com). When we consider the Porter’s Diamond, the factor conditions in Brazil are numerous. “Porter theorizes that four broad attributes of a nation shape the environment in which local firms compete, and these attributes promote or impede the creation of competitive advantage. The attributes are factor endowments, demand conditions, relating and supporting industries, and firm strategy, structure, and rivalry” (Hill, 2011) The land in Brazil, occupying more than fifty percent of South America, is the fifth largest country in the world. (www.slideshare.net) The country’s natural resources are iron ore, Bauxite, rubber and seafood. The soil in Brazil is so rich they are able to grow any type of crop. (www.slideshare.net) Along with being the top exporter of coffee, Brazil also exports soya bean, rice, tomatoes, jute and cotton. Banana and pineapples are grown more in Brazil, than in any other country. (www.slideshare.net) “Labor in Brazil is cheaper than most of European and North American countries” (www.slideshare.net). The demography of Brazil is mix with European, African, and Amerindian. A very diverse population that gives Brazil a competitive advantage over