Question

Using Michael Porter's diamond model that lists Porter's attributes of national competitive advantage, match each example into the correct attribute on the model. Some attributes may have more than one example.

Example 1: Different Management Ideologies can help or harm building national competitive advantage.

Example 2: Basic ones are natural resources, climate, location, and demographics

Example 3: The presence of these ancillary companies, often suppliers, can help achieve strong competitive positions through their strengths within the same industry.

Example 4: These can help companies create a competitive advantage, when knowledgeable domestic buyers pressure firms to innovate and create more advanced products.

Example 5: Advanced ones include communication infrastructure, skilled labor force, and research facilities.

Answer 1

Example 1: Different Management Ideologies can help or harm building national competitive advantage : Firm strategy, structure and rivalry

Firm strategy, structure and rivalry talks about using the most strategic ideas and approaches to have a competitive advantage in the firm and maintaining its level of business.

Example 2: Basic ones are natural resources, climate, location, and demographics : Factor endowments

Factor endowments or conditions talks about what the country is offering for the companies to produce and operate their business in a better manner. Basic ones are the climate, natural resources etc.

Example 3: The presence of these ancillary companies, often suppliers, can help achieve strong competitive positions through their strengths within the same industry : Related and supported industries

The concept of Related and supported industries talk about different industries existing in the market which helps each other providing the goods and reasources and often acts as a supplier to produce more.

Example 4: These can help companies create a competitive advantage, when knowledgeable domestic buyers pressure firms to innovate and create more advanced products : Demand conditions

Demand conditions talk about what are the demand trends among the people of that country that would influence your production level of a country. Knowledgable buyers want a better good thus demand power is influencing the level of productivity.

Example 5: Advanced ones include communication infrastructure, skilled labor force, and research facilities : Factors endowments

As discussed above, factor conditions which are not basic and are advanced ones includes the labour force or the research facilities provided by the country to make the company grow into a better one.