ipl-logo

Elements Of Global Rivalry

1237 Words5 Pages

The answers to survival in modern day global rivalry lies in the four elements, which independently and as a whole come together to form the diamond of national advantage. These components are factor conditions, demand conditions, related and supporting industries and lastly the firm’s strategy, structure and rivalry. At first, according to the diamond theory, the factor conditions consists of production factors such as labor, land, natural resources, and infrastructure which determines the flow of trade among nations. For instance, the Kingdom of Saudi Arabia is very well recognized for oil and oil reproduction, consequently it utilizes the oil as a main export to other nations in exchange for goods and services. With today’s rapid technology production factors consisting of labor pool, natural resources and so forth are not enough for nations to compete on a global scale thus it needs to be upgraded and specialized. Specifically that the global trade that has created an accessibility for the nations to access the local resources and technology. …show more content…

The demand for products and services derives the nation to produce and innovate. Therefore, the more sophisticated the buyers are the more competitive advantage is gained. This demand level fluctuates across different segments for the nation or even for other nations through dedicating ahead of time those indicators of the consumer necessities. This advantage can also be gained not only by the nation it self but also for other nation. One of the most common case in point given, is the research done for chronic diseases and to developed treatments, such as diabetes, hypertension and many other chronic illness. Moreover, it is vital to comprehend the demand behavior one country is not similar to another …show more content…

Highlighting the fact that the four elements work interchangeably and impact one another. For this reason, the diamond system establishes four forces that are complementing one another, where two of these elements are self-reinforcing, they are the domestic competitiveness and geographical focus. The outcome of these forces helps one another to elevate, the competitiveness leads the companies to innovate, and the geographical location amplifies the elements separately and all collectively. The direction of the relationship can be horizontal or vertical, for instance the top class suppliers can become new threat entrants in the market, and an excellent example for the diamond system is the how the Japanese were able to enter the electronic market for liquid–crystal display due to the reason they formally supplied the US market for electronic components assembly, started its electronic company DELL. The company is competing for the leading brands for the PC laptop and netbooks. From the discussion of the diamond features and demonstrating them in a live case studies, it can be agreed that the diamond system forms an environmental cluster of competitive industries. Once a cluster forms the whole group of industries become mutually supporting. Thus the companies must analyze

Show More
Related

Case Study Dynacorp

1336 Words | 6 Pages

Introduction A company’s success is measured by how well it is structured and organized in order to adapt to the changes in environment as well as the changes within itself such as the company’s scale, employees, product scope, etc. Having a suitable, well-structured organizational frame will not only increase the chance of being success but also prolong the company’s lifespan compared to an un-structured one. It is important to note that an organization’s structure needs to fit in with the current situation and does not necessarily required remain unchanged over time. Taking Dynacorp as an example, even though its functional structure contributed to the vast growth of the company at the start, its limitation in dealing with the changes within

Read More

Global Trade Dbq Essay

841 Words | 4 Pages

Benjamin Franklin said, “No nation was ever ruined by trade.” During the early modern era, technological advancements in shipbuilding and increased knowledge on wind and current patterns made global trading possible. The increased flow of trade in the 1300s through 1800s created important social relations and economic opportunities due to the increased integration of foreign people and desire to be wealthiest and most powerful, while improving government, culture, and ideas in the modern world. Global trading increased the spread of people, which also increased the spread of religion and culture.

Read More

Analysis Of The World-System, Hegemony, And Decline By Thomas Mccormick

482 Words | 2 Pages

Thomas McCormick’s essay titled The World-System, Hegemony, and Decline, presents some relevant questions that I am unable to answer by just reading his work. Firstly, alluding to economic freedom and freedom of the seas as main U.S. objectives with regards to foreign policy might not be entirely accurate. It is true that the United States have used and will continue to use its elements of national power to protect economic interests all around the world, but are these the only instances where the United States fight for other freedoms? Is Uncle Sam our capitalistic egomaniac above anything else? Additionally, McCormick seems to be disappointed when he writes about how labor compensation differs between core, semi periphery, and periphery countries (Merrill and Paterson, 2010, 4).

Read More

Shelley's Argument Against Scientific Technology

562 Words | 3 Pages

It supposes important progress in the fight against diseases such as diabetes, some cancers and others hereditary diseases. Although they have many advantages, they also pose ethical problems, often motivated by the interests and bad practices of multinational

Read More

Apple Executive Summary

1435 Words | 6 Pages

Suppliers are one of the most important elements for any business. The power of the suppliers depends on the volume of suppliers existing in the market and the uniqueness of their products or services. Apple outsources micro-chip from Intel for high processing technology. The power of customer depends on the purchasing volume, availability of substitutes, price sensitivity and buyers’ incentives. The consumers of Apple have a flexible variety of product line from its competitors.

Read More

Human Body During The Renaissance

1668 Words | 7 Pages

For that reason, is why the we have modern pharmaceutical industry, and the world of patent

Read More

Capsim Porter's Five Forces

506 Words | 3 Pages

Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.

Read More

Case Study Of Apple Inc.'s Diversification Strategy

1442 Words | 6 Pages

The presence of the numerous electronic suppliers in the electronic industry is a big threat to the existence of Apple Inc. These suppliers exert their presence in the market by aggressively marketing or supplying the products of rival companies. Apple Inc. strategy to beating powerful suppliers borders on the characteristic of its business model (Noren 2013). The fits into the distribution channel as a wholesaler. In this model, the company sells its products or distributes its products to retailers.

Read More

Porter's Five Forces Analysis Pharmaceutical Industry

720 Words | 3 Pages

Many new companies to enter the market without burden of costly tasks such as research and development, clinical trials and manufacturing of drugs. Moreover, patent expiry is one of the reasons which is offering opportunities for lower cost generic manufacturer in terms of greater market access. Additionally, the government has increased their focus on healthcare cost cutting. It is creating pressure on the authority to allow early introduction of low-cost drugs in the

Read More

Political Factors Affecting Apple Inc

2108 Words | 9 Pages

The framework is designed to identify the opportunities and threats within an industry. The five forces are mainly the threat of new entry, supplier power, buyer power, threat of substitution and lastly, competitive rivalry. Apple portrays a significant role in four major businesses, more specifically, the “communication equipment industry, the music and video industry, the mobile phones industry and the personal computer industry” (UKEssays). In terms of

Read More

Porter's Five Forces Of Twitter

903 Words | 4 Pages

This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter 's five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization 's current competitive position, and the strength of a position that an organization may look to move into. Strategic analysts often use Porter’s five forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.

Read More

Global Competitive Advantages Of Apple Inc

1312 Words | 6 Pages

(Apple computer,inc 2003) Porter 's single diamond framework holds that a multinational enterprise builds on a home base to achieve international competitiveness. (Alan M. Rugman 1993) this Porter’s Diamond Model established by

Read More

Porter's Five Forces In The Supermarket Industry

1484 Words | 6 Pages

Each of the forces is determined how competitive in that industry as well as the structure of the industry. Porter’s five forces factors are consists of competitive rivalry, the threat of new entrants, the threat of substitutes, bargaining power from

Read More

Globalization Case Study: Amazon

1105 Words | 5 Pages

I. INTRODUCTION a. BACKGROUND: Globalization is a process of interaction and integration among the people, companies, and governments of different countries, a procedure compelled by international trade and investment, and supported by information technology. Furthermore, this process has an effect on various other systems such as on the environment, culture, political systems, economic development and prosperity and lastly, on human physical well-being in societies around the world. “Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion” (York, 2016). Technology has been another primary driver of globalization,

Read More

Porter's Five Forces In The Oil And Gas Industry

1601 Words | 7 Pages

External Analysis: Microenvironment Introduction The two major competitive factors controlling the external environment are the Macro and the Micro environments. While the Macro deals with the PESTLE affects, the Micro environment deals with the current structure of the industry and the effect of the roles played by the giants of the industry. Figure A-1 The Microenvironment includes the effect of rivalry, suppliers, buyers, distributors and the general public towards the strategy formulation by the company.

Read More

More about Elements Of Global Rivalry

Related Topics

Open Document