Question

Find a company that has executed a Global Expansion strategy into a foreign market (assume that you are a US based corporations) taking advantage of the concept of the Diamond of National Advantage - describe the situation highlighting the components of the Diamond that the company leveraged to achieve success.

Answer 1

answer-

The company which i would talk about is Netflix which is a online entertainment streaming US based company.The model presented by porter called Diamond of National Advantage which tells us about the factors that can drive competitive advantage for one national market or economy over another . The model can also be used by businesses to help guide and shape strategy regarding how to approach investing and operating in different national markets.

there are four factors in this model which are -

Strategy, Structure and Rivalry

This factor is related to the way in which an organization is organized and managed, its corporate objectives and the measure of rivalry within its own organizational culture.

Demand Conditions

In this determinant the key question is: What reasons are there for a successful market? What is the nature of the market and what is the market size?

Related and supporting Industries

The success of a market also depends on the presence of suppliers and related industries within a region. Competitive suppliers reinforce innovation and internationalization

Factor Conditions

This is the situation in a country relating to production factors like knowledge and infrastructure. These are relevant factors for competitiveness in particular industries. These factors can be grouped into material resources- human resources (labour costs, qualifications and commitment) – knowledge resources and infrastructure.

so , Netflix has leverages the Demand factor to expand its business in another countries . netflix analyze the market demand of another countries that there is high demand for original entertainment content in other countries like Netflix has expand its business India because of increase and high use of internet at low cost and netflix model is based on online streaming both fulfills the conditions. Netflix seek the opportunity of high demand for its services in India and now Netflix is become the top streaming entertainment services provider in India. It has launched many TV series like Scared games, Leila which were hit and high in demand. this is not the case in India, netflix does the same for other countries like leverage the demand conditions and expand its business in another countries.