Porter Diamond Essay

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: 1. 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. 2. Demand conditions High degree of buyer sophistication Strong preference for new product and high demand for quality products and services 3. 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. 4. 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: 5. 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. 6. Demand conditions High degree of buyer sophistication Strong preference for new product and high demand for quality products and services 7. 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. 8. 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: 9. 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. 10. Demand conditions High degree of buyer sophistication Strong preference for new product and high demand for quality products and services 11. 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. 12. 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: 13. 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. 14. Demand conditions High degree of buyer sophistication Strong preference for new product and high demand for quality products and services 15. 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. 16. 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: 17. 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 19. 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. 20. 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: 21. 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. 24. 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: 25. 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. 26. Demand conditions High degree of buyer sophistication Strong preference for new product and high demand for quality products and services 27. 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. 28. 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