Michael Porter Diamond

Categories: IndustryTheories

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.

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He identifies four elements present to varying degrees in every nation that form the basis of national competitiveness. Analyze the current situation of Japan using the four elements of Porter’s national competitive advantage theory.

Suggested Answers:

Factor conditions

Japan possesses relatively weak basic factors but good advanced factors, e.

g. availability of high quality scientist and engineers; and advanced rail road and telecommunication infrastructure.

Demand conditions

High degree of buyer sophistication

Strong preference for new product and high demand for quality products and services

Related and supporting industries

Clusters in manufacturing sector are sustained by abundant and high quality supporting industries. For example, the automobile parts cluster in Ota City and the industrial supply base for construction machinery in Komatsu City.

Firm strategy and rivalry

Good cooperation in labor-employer relations.

Japan has traditionally lifetime employment, which helps to build good relationship between management and employees

High intensity of local competition. There are large number of companies in both manufacturing and service sectors, e.g. car manufacturers and IT software companies

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 using the four elements of Porter’s national competitive advantage theory.

Suggested Answers:

Factor conditions

Japan possesses relatively weak basic factors but good advanced factors, e.g. availability of high quality scientist and engineers; and advanced rail road and telecommunication infrastructure.

Demand conditions

High degree of buyer sophistication

Strong preference for new product and high demand for quality products and services

Related and supporting industries

Clusters in manufacturing sector are sustained by abundant and high quality supporting industries. For example, the automobile parts cluster in Ota City and the industrial supply base for construction machinery in Komatsu City.

Firm strategy and rivalry

Good cooperation in labor-employer relations. Japan has traditionally lifetime employment, which helps to build good relationship between management and employees

High intensity of local competition. There are large number of companies in both manufacturing and service sectors, e.g. car manufacturers and IT software companies

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 using the four elements of Porter’s national competitive advantage theory.

Suggested Answers:

Factor conditions

Japan possesses relatively weak basic factors but good advanced factors, e.g. availability of high quality scientist and engineers; and advanced rail road and telecommunication infrastructure.

Demand conditions

High degree of buyer sophistication

Strong preference for new product and high demand for quality products and services

Related and supporting industries

Clusters in manufacturing sector are sustained by abundant and high quality supporting industries. For example, the automobile parts cluster in Ota City and the industrial supply base for construction machinery in Komatsu City.

Firm strategy and rivalry

Good cooperation in labor-employer relations. Japan has traditionally lifetime employment, which helps to build good relationship between management and employees

High intensity of local competition. There are large number of companies in both manufacturing and service sectors, e.g. car manufacturers and IT software companies

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 using the four elements of Porter’s national competitive advantage theory.

Suggested Answers:

Factor conditions

Japan possesses relatively weak basic factors but good advanced factors, e.g. availability of high quality scientist and engineers; and advanced rail road and telecommunication infrastructure.

Demand conditions

High degree of buyer sophistication

Strong preference for new product and high demand for quality products and services

Related and supporting industries

Clusters in manufacturing sector are sustained by abundant and high quality supporting industries. For example, the automobile parts cluster in Ota City and the industrial supply base for construction machinery in Komatsu City.

Firm strategy and rivalry

Good cooperation in labor-employer relations. Japan has traditionally lifetime employment, which helps to build good relationship between management and employees

High intensity of local competition. There are large number of companies in both manufacturing and service sectors, e.g. car manufacturers and IT software companies

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 using the four elements of Porter’s national competitive advantage theory.

Suggested Answers:

Factor conditions

Japan possesses relatively weak basic factors but good advanced factors, e.g. availability of high quality scientist and engineers; and advanced rail road and telecommunication infrastructure.
18. Demand conditions

High degree of buyer sophistication

Strong preference for new product and high demand for quality products and services

Related and supporting industries

Clusters in manufacturing sector are sustained by abundant and high quality supporting industries. For example, the automobile parts cluster in Ota City and the industrial supply base for construction machinery in Komatsu City.

Firm strategy and rivalry

Good cooperation in labor-employer relations. Japan has traditionally lifetime employment, which helps to build good relationship between management and employees

High intensity of local competition. There are large number of companies in both manufacturing and service sectors, e.g. car manufacturers and IT software companies

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 using the four elements of Porter’s national competitive advantage theory.

Suggested Answers:

Factor conditions

Japan possesses relatively weak basic factors but good advanced factors, e.g. availability of high quality scientist and engineers; and advanced rail road and telecommunication infrastructure.
22. Demand conditions

High degree of buyer sophistication

Strong preference for new product and high demand for quality products and services

23. Related and supporting industries
Clusters in manufacturing sector are sustained by abundant and high quality supporting industries. For example, the automobile parts cluster in Ota City and the industrial supply base for construction machinery in Komatsu City.

Firm strategy and rivalry

Good cooperation in labor-employer relations. Japan has traditionally lifetime employment, which helps to build good relationship between management and employees

High intensity of local competition. There are large number of companies in both manufacturing and service sectors, e.g. car manufacturers and IT software companies

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 using the four elements of Porter’s national competitive advantage theory.

Suggested Answers:

Factor conditions

Japan possesses relatively weak basic factors but good advanced factors, e.g. availability of high quality scientist and engineers; and advanced rail road and telecommunication infrastructure.

Demand conditions

High degree of buyer sophistication

Strong preference for new product and high demand for quality products and services

Related and supporting industries

Clusters in manufacturing sector are sustained by abundant and high quality supporting industries. For example, the automobile parts cluster in Ota City and the industrial supply base for construction machinery in Komatsu City.

Firm strategy and rivalry

Good cooperation in labor-employer relations. Japan has traditionally lifetime employment, which helps to build good relationship between management and employees

High intensity of local competition. There are large number of companies in both manufacturing and service sectors, e.g. car manufacturers and IT software companies

Cite this page

Michael Porter Diamond. (2016, Mar 06). Retrieved from http://studymoose.com/porter-diamond-essay

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