CGE25101 Globalization and Business Tutorial 12 Discussion Question: The Porter’s Diamond Michael Porter put forth a theory in 1990 to explain why some countries are leaders in the production of certain products. His work incorporates certain elements of previous international trade theories but also makes some important new discoveries. He identifies four elements present to varying degrees in every nation that form the basis of national competitiveness. Analyze the current situation of Japan
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Logitech 1. Explain how trade lowers the costs of making computer peripherals such as mice and keyboards. Trade helps in reduction of product prices due to following reasons: Components are procured from any part of the world where they can be produced/manufactured at the best cost. (Motorola plant in Malaysia makes the mouse’s chip; Agilent Technologies supplies optical sensors) --The intellectual capital going into any product is created at the place where the right talent is available
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“Critically discuss to what extent Porter’s Diamond is a useful concept in explaining home and host location strategies of international business? Illustrate your answer with references to at least two case companies” The main aim of International business is to build and sustain competitiveness for economic value creation in both domestic and overseas markets (Besanko et al. 2007). Internalisation business theory however has a variety of models that can identify the environmental analysis of specific
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1. Reading for this Lecture Porter M. (1990)‚ The Competitive Advantage of Nations‚ Chapters 3&4 2. Why Location Matters The ways that firms create and sustain competitive advantage in global industries provides the necessary foundation for understanding the role of the home nation in the process. There are five premises we must understand relating to national advantage: 1) The nature of competition and the sources of competitive advantage differ widely among industries and industry segments
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Logitech 1.In a world without trade‚ what would happen to the costs that American consumers would have to pay for Logitech’s Products? World trade refers to buying and selling across national borders. It would be difficult to predict or estimate the prices of the product of one company like Logitech in one market like America. 2.Explain how trade lowers the costs of making computer peripherals such as mice and keyboards. 1. Components are procured from any part of the world where
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Module name : international business management module Teacher : Ian Norman student Name : Mokbul Hossain Student Id : 000762547 Question: As a management consultant advising a country of your choice‚ explain how u can use Porter ’s Diamond model to evaluate and improve the nation ’s competitive position. Introduction Business world is getting complicated day by day .Companies want to do business like participating in the competition for profit or market share. We are now at globalisation
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that it produces less efficient from other countries‚ even though they can produce more efficiently by themselves. Different factors of production (i.e. land‚ labor‚ capital) are available in different countries and regions‚ and together with different proportions are needed to manufacture particular goods. A more abundant of the above factors of production lead towards a lower cost. Through international trade‚ a manufacturing firm able to gain an economy of scale and for the ultimate goal of cost
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$1 billion‚ Logitech has been able to establish itself as the pioneer in products like mice‚ keyboards‚ low –cost video cameras etc. Logitech made its name as technological innovator in the highly competitive business of personal computer peripherals. Logitech is different from its competitors by continuing innovations. Furthermore‚ the company has also adopted the strategy of cost differentiation by configuring its global value chain to lower production costs. Legally speaking‚ Logitech is a Swiss
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consequently exploiting locational advantages‚ the importance of a favorable national home base‚ and the strategic implications for both western and Chinese companies aiming at positioning themselves in the market for e-mobility. Keywords: Porter’s diamond; BYD; e-mobility; National competitive advantage; China; Automobile industry 1. Introduction China is now the biggest automotive market in the world. Within only 10 years‚ all relevant car producers have established joint venture companies with
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Executive Summary What are the secrets of India’s success in information technology? By using Porter’s Diamond Model‚ this article tries to answer that question. Based on the analysis‚ it seems the only determinant in the Porter’s Diamond that creates India’s success is Factor Condition (i.e. the Indian intellectual capital and “Indian connection” in Silicon Valley). The supporting determinant outside the diamond is the outsourcing trend in current global competition‚ which can be considered as the
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