How the diamond as a system impacts the global competitiveness in a country? Every business functions within a playing field. In the mid-1980s, Professor Michael Porter developed a framework to assess the competitiveness of regions, states and nations. This framework called “the Diamond model”. The diamond is a model for classifying multiple dimensions of micro-economic competitiveness in nations, states, or other locations, and be aware of how they interact. The Diamond model involves four elements which are: factor condition, demand condition, related, supporting industries, and strategy, structure and rivalry of the firm. The elements in the diamond that are barriers to productivity, can improve competitiveness.
The first element …show more content…
Demand condition describes the state of home demanded for products and services produced in a country. Home demands conditions effect the determining of particular factor conditions. They have influence the pace and direction of innovation and product development. As claimed by Porter, home demanded is defined by three main characteristics: the mix of customers’ needs and wants, their scopes and growth rate, and the mechanisms that transfer domestic preferences to foreign markets. Porter claimed that a country can achieve national advantages in an industry or market segment, if home demands offer clearer and earlier signals of demand trends to domestic suppliers than to foreign competitors. Generally, home markets have a much higher impact on an organization’s capability to recognize customers’ needs than foreign markets do. Juhayna delivers products to match the needs of every family member in Egypt, and this called home demand. As result of home demand in Egypt Juhayna is the first to bring packaged milk to the Egyptian …show more content…
Relate and supporting industries refer to the existence or absence of supplier industries and other related industries that are internationally competitive. One internationally successful industry may be in the lead to advantages in other related or supporting industries. Competitive supplying industries will strengthen innovation and internationalization in industries at future stages in the value system. In addition to suppliers, related industries are of significance. These are industries that can operate and coordinate specific activities in the value chain together, or that is concerned with complementary products (e.g. hardware and software).For example; The Modern Concentrate Company specifies in the production of fruit concentrates For Juhayna. It positioned in Sixth of October City. The Masreya Dairy and Juice Company were obtained by Juhayna. Juhayna owns the company whose manufacturing facilities are positioned in Sixth of October city First Industrial Zone. They produce plain and flavored milk, white cheese and cooking
The first element …show more content…
Demand condition describes the state of home demanded for products and services produced in a country. Home demands conditions effect the determining of particular factor conditions. They have influence the pace and direction of innovation and product development. As claimed by Porter, home demanded is defined by three main characteristics: the mix of customers’ needs and wants, their scopes and growth rate, and the mechanisms that transfer domestic preferences to foreign markets. Porter claimed that a country can achieve national advantages in an industry or market segment, if home demands offer clearer and earlier signals of demand trends to domestic suppliers than to foreign competitors. Generally, home markets have a much higher impact on an organization’s capability to recognize customers’ needs than foreign markets do. Juhayna delivers products to match the needs of every family member in Egypt, and this called home demand. As result of home demand in Egypt Juhayna is the first to bring packaged milk to the Egyptian …show more content…
Relate and supporting industries refer to the existence or absence of supplier industries and other related industries that are internationally competitive. One internationally successful industry may be in the lead to advantages in other related or supporting industries. Competitive supplying industries will strengthen innovation and internationalization in industries at future stages in the value system. In addition to suppliers, related industries are of significance. These are industries that can operate and coordinate specific activities in the value chain together, or that is concerned with complementary products (e.g. hardware and software).For example; The Modern Concentrate Company specifies in the production of fruit concentrates For Juhayna. It positioned in Sixth of October City. The Masreya Dairy and Juice Company were obtained by Juhayna. Juhayna owns the company whose manufacturing facilities are positioned in Sixth of October city First Industrial Zone. They produce plain and flavored milk, white cheese and cooking