Porter's Diamond
The analysis of Porter’s diamond model theory and apply in Chinese construction industry
Student number: M00377811
Student name: Chen Xinglin
Module number: MGT 4139
Module name: International Business Management
Module Tutor: Sabrina Akbar
Introduction
Nowadays, the global economy is developing faster and faster. Many countries start to pay much attention to the international competitiveness. More and more people start to research how to build up the high competitiveness in international industry. And some scholars put forward some theories to support the international industry. For example the Michael Porter diamond Model. First of all, this paper is going to introduce the Michael Porter diamond theory. Secondly, analyse this theory in details and discuss what the usefulness and defect are for the international industry. Thirdly, this paper is going to explore the how this theory is going in Chinese construction industry. At last, this paper is going to make a conclusion and give some suggestion for the Michael Porter diamond Model theory.
The introduction of the Michael Porter diamond Model
The Michael Porter diamond Model was put forward by Professor Michael Porter, who is working in the American Harvard Business School. Porter’s diamond model is used to analyse why some industries in a country has the strong competitiveness in the world. Michael thinks that if a country’s industry got the high competitiveness, it depends on four factors (Grant, 1991). Factor conditions, demand conditions, related and supporting industries and firm strategy, structure and rivalry.
The first factor conditions can be divided into the primary factors of production and advanced factors of production. The former means natural resources, climate and geographic location. The latter means artificial higher technology. The second demand conditions mean domestic demand structure and the international market pressure. The third are related and supporting industries. It means
Student number: M00377811
Student name: Chen Xinglin
Module number: MGT 4139
Module name: International Business Management
Module Tutor: Sabrina Akbar
Introduction
Nowadays, the global economy is developing faster and faster. Many countries start to pay much attention to the international competitiveness. More and more people start to research how to build up the high competitiveness in international industry. And some scholars put forward some theories to support the international industry. For example the Michael Porter diamond Model. First of all, this paper is going to introduce the Michael Porter diamond theory. Secondly, analyse this theory in details and discuss what the usefulness and defect are for the international industry. Thirdly, this paper is going to explore the how this theory is going in Chinese construction industry. At last, this paper is going to make a conclusion and give some suggestion for the Michael Porter diamond Model theory.
The introduction of the Michael Porter diamond Model
The Michael Porter diamond Model was put forward by Professor Michael Porter, who is working in the American Harvard Business School. Porter’s diamond model is used to analyse why some industries in a country has the strong competitiveness in the world. Michael thinks that if a country’s industry got the high competitiveness, it depends on four factors (Grant, 1991). Factor conditions, demand conditions, related and supporting industries and firm strategy, structure and rivalry.
The first factor conditions can be divided into the primary factors of production and advanced factors of production. The former means natural resources, climate and geographic location. The latter means artificial higher technology. The second demand conditions mean domestic demand structure and the international market pressure. The third are related and supporting industries. It means