How convincing is Porters model of national competitive advantage in Essay - 8

How convincing is Porters model of national belligerent advantage in explaining the characteristics and performance of the business systems of major economies - Essay ExampleHowever, irrespective of the individual firms, well-nigh countries as a whole have achieved a higher competitive position as compared to separate firms (Baker, 2007). This study will shed some light on how the nations achieve competitive advantage by using Porters Diamond Model. This model focuses on the determining factors of national competitive advantage. The paper will discuss the issues and loopholes of the Porters Diamond Model and how they fail to answer certain minute problems.Porter (1990) explained the competitiveness of a nation based on the four different parameters, which includes factor conditions, enquire conditions, supporting industries and firms strategy, structure and rivalry.Factor Conditions The factor conditions include the achievement factors of a nation, like human beings resources and human capital, physical resources, knowledge base, financial strength. The quantity and quality of the available human resources determine the national production capabilities.Demand Conditions The demand conditions explain the level of demands of products in the home country. The higher level of demand influences the gait of product innovation and improves service quality.Firms Strategy structure Rivalry This parameter suggests how the firms in a country are organized and how they determine the domestic competitiveness. It mostly reflects the organizational cultural trends of the nation. Certain organizational deportment and pattern of activities provide added advantage to them in terms of former(a) foreign companies.Relating and supporting industries The presence of other industries influences the competitive position of an organization. The domestic firms can leverage the presence of other industries in order to shape competitive advantage.The four parameters of the Diamon d model are mostly industry oriented. The diamond model is cerebrate on achieving a competitive advantage in a particular industry.