The most important aim of International Business is to build and sustain competitiveness for economic value creation in both local and overseas market (Besanko,2007). International business theory on the other hand has a variety of models that can recognise the environmental analysis of specific countries. An excellently well known framework is the Porter’s Diamond, which was found by Michael Porter in 1990.
Porter’s Diamond Model
Porter’s theory of national competitive advantage is based upon a study of the characteristics of the national environment which spot out four sets of variables that in some way influences companies capacity to establish and maintain competitive advantage within international markets. Porter’s diamond …show more content…
Volkswagen group concepts make a few distribution, production, and market-based networks all around the world. Additionally, Volkswagen has also exploited the absolute advantage of its capital and organisation and locations abroad since it shifted to cheap labour and raw materials in countries like China, Mexico, and Brazil. Moreover, it also took into consideration the comparative advantage from the specialisation of the country regarding knowledge, existing regressive connections facilities, and skill in particular …show more content…
From the Japanese and USA’s perspective, industrial rivalry has been developed which is also another strength of new pattern of dynamic capitalism in the vehicle industry. Globalization itself is a competitive power that determined Volkswagen to be strategic and competitive. In order to face the rivalry, Volkswagen group, which comprises of diverse nature of organisations, from different countries around the world has been enlarged. In addition to that, creation of cars has been decentralized as designated by the engineering of the production so that they can appreciate economies of scale and scope.
Firm’s strategy, structure, and rivalry for Vodafone
Vodafone business strategy is to meet the social needs of the customers in order to increase profit. They also took into consideration the specific needs of customers in the local market. Their goals is to be the leading communication supplier. Vodafone group has businesses all over the world but its major business are in UK and Europe. In UK, the business has been up to 80% of revenue and they are facing competition with O2, Orange, and