Porters Model of National Competitive Advantage Essay

Porters Model of National Competitive avail - Essay ExampleThis paper illustrates that in the book The Competitive Advantage of Nations Michael Porter discussed the reasons why slightly nations, social groups and economic institutions advances than others. His work focused on the collective competitive advantages of the firms in the nation preferably than the performance of the individual firms. The orientation of his work is positive kinda normative focusing on the worldwide patterns of competitive advantage. He developed this model by combining theories in the fields of strategies to compete and multinational economics and performed an inductive and deductive analysis. Porters model was a result of the analysis and the ponder of 100 industries in 10 countries which included counties from Europe, Asia, and America, regarding their competitive performance. His work showed how industrial competiveness with a different incursion can be incorporated into companys strategy. Porte r used strategic management theories and study them with international trade and economy. The book emphasizes the fact that the national competitiveness is determined by the firms rather than the nations. The possible action suggests that the influence the nation has on the competitiveness of the firms depends on the firms competitive success that the milieu built over time. The nation acts as a home base for the firms, this home base helps in developing the firms strategy, culture, character of its management, the avail faculty and quality of resources, technology and helps it in establishing prior to its intricacy internationally as the firms grow domestically before they plan their expansion internationally. The theory basically analyses the characteristics, rather four variables of the national environment which be the basis of competitive advantage and determines firms ability to compete and sustain itself in international markets. The Porter referred these variables as Na tional Diamond. These four variables are firms strategy structure and rivalry, factor conditions, demand conditions and related and supporting industries.