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Dear sir,
I just wonder do we have to distinguish advanced factors or specialised factors when facing the first element of Porter’s diamond about factors condition? Because sometimes I am confused whether they should be covered in advanced conditions or basic factors or generalised factors. Especially the sentence ‘both these factors are also generalised factors” really confused me.“The first of these is factor conditions which are the inputs necessary to compete in any industry, such as labour, land, natural resources, capital and infrastructure. The case study scenario suggests that the transportation system in Ceeland is cheap and effective and ease of distribution is one of the factors which attracted MachineShop to the country. Furthermore, the country has a well-established digital communications structure, and as MachineShop expects to make extensive use of internet order placement, this is also important. Both of these are examples of advanced factors which offer more sustainable advantages than basic factors, such as natural resources and unskilled labour and they would make Ceeland attractive to MachineShop. However, both these factors are also generalised factors which do not provide as decisive and sustainable a basis for competitive advantage as other more specialised factors.”
Thanks in advance.
Dear sir,
I have trouble understanding the second theory-demand factors of Porter’s diamond. I just wonder the reason why the home market usually has a disproportionate impact on a firm’s ability to perceive and interpret buyer needs. Even though there is one reason, I cannot follow it due to my poor understanding. Sorry about that. Thank in advance.Porter argues that the home market usually has a disproportionate impact on a firm’s ability to perceive and interpret buyer needs. One of the reasons for this is the attention the home market requires. Product development usually takes place in the home market. Pride and ego focus attention on succeeding in this market. Pressure from buyers is immediate and the proximity and cultural similarity of these buyers mean that their needs are well understood. MachineShop
Dear sir,
I have trouble understanding the third element-related and supporting industries of Porter’s diamond. Does it mean there is no related and supporting industries currently, but they are in the development? Quite confused about the answer.“The third element of the diamond is related and supporting industries. This concerns the presence in the nation of supplier industries or related industries which are internationally competitive. There is some evidence of this in the scenario (MachineShop already buy from a Ceeland supplier), although the government (see later) is encouraging the production of light engineering and so related, supporting industries may eventually develop in Ceeland. ”
Thanks in advance
Dear sir,
I wonder the reason why …. will be missing. The detail answer is as follows. The answer is in the last paragraph of Q1 c.” However, the stimulus experienced by a company operating in a country where there are internationally competitive suppliers or related industries, or where there is a great degree of rivalry between competitors, will be missing. ”
Thanks in advance.
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