The construction Industry of Brazil
The construction Industry of Brazil
International Business The construction Industry of Brazil
Many factors contribute in the success of a particular industry in a particular country, according to Michael Porters extensive research the best analysis of success is based off of something called Porter’s Diamond (Hill, 2010). This analysis includes factor endowments which are a nations production factors such as a strong infrastructure and skilled labor, demand conditions or the country’s demand for the product or service, related industries that create competition, and strategy in management and organization (Hill, 2010). Brazil has many economic strengths but the industry that stands out above the rest is construction, whether it be as a result of cultural opportunities, industrial advantage, or industry awareness by applying Porter’s diamond Brazil’s success in the construction industry will become clearer.
Factor endowments
Basic and advanced factors make up the competitive advantage for an industry. At the basic level, factors such as natural resources, demographics and location are the key indicators and advanced factors indicate the most powerful competitive advantage at the business investment and government level (Hill, 2010). Brazil’s basic factors include natural resources like oil, natural gas and the capabilities to produce hydro-electric power which make it a very self-sufficient country that has the resources to be competitive (EDC, March 2012). Brazil’s advanced factors include many business opportunities and government support, such as the opportunity to host the 2014 World Cup which will involve major construction projects that will boost the economy and Brazil’s governments guarantee to continue to invest in the countries energy sector with a pledge of eighty billion dollars to be dedicated until 2017 (EDC, March 2012). There are also plans for continued road work, railways and airport construction that will affect both basic and advanced
International Business The construction Industry of Brazil
Many factors contribute in the success of a particular industry in a particular country, according to Michael Porters extensive research the best analysis of success is based off of something called Porter’s Diamond (Hill, 2010). This analysis includes factor endowments which are a nations production factors such as a strong infrastructure and skilled labor, demand conditions or the country’s demand for the product or service, related industries that create competition, and strategy in management and organization (Hill, 2010). Brazil has many economic strengths but the industry that stands out above the rest is construction, whether it be as a result of cultural opportunities, industrial advantage, or industry awareness by applying Porter’s diamond Brazil’s success in the construction industry will become clearer.
Factor endowments
Basic and advanced factors make up the competitive advantage for an industry. At the basic level, factors such as natural resources, demographics and location are the key indicators and advanced factors indicate the most powerful competitive advantage at the business investment and government level (Hill, 2010). Brazil’s basic factors include natural resources like oil, natural gas and the capabilities to produce hydro-electric power which make it a very self-sufficient country that has the resources to be competitive (EDC, March 2012). Brazil’s advanced factors include many business opportunities and government support, such as the opportunity to host the 2014 World Cup which will involve major construction projects that will boost the economy and Brazil’s governments guarantee to continue to invest in the countries energy sector with a pledge of eighty billion dollars to be dedicated until 2017 (EDC, March 2012). There are also plans for continued road work, railways and airport construction that will affect both basic and advanced