involves polished home buyers within B u s i n e s s F i n a n c e

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(attached). QUESTION: After reading the article by Michael Porter on his Diamond of National Advantage (in addition to the Dyer et al text, p. 181, apply Porter’s Diamond to an organization and an international market where the organization currently does business. Apply and summarize all four factors of the diamond to the organization and market. You may need to do research on the company and its operations in the international market as well as background on Porter’s Diamond.

ANNA’S RESPONSE: Porter’s Diamond is an economic model established by Michael Porter in his book The Competitive Advantage of Nations. The model usually helps in analyzing the external competitive environment to assist organizations in determining the relative strength and explain why companies possess regional advantage or are competitive. Porter explained that enterprises gain an advantage against the International’s best competitors due to challenge and pressure (Porter, 2012). An example of an organization where Porter’s Diamond can be used to explain a regional advantage is in the Audi manufacturing industry in Germany. Audi is a brand for an automobile manufacturer that engineers, produces, designs, market, and distributes luxury cars (Grünig & Morschett, 2017). The vehicle manufacturing industry has a regional advantage since it fulfills the four key factors in Porter’s Diamond.

The four factors of Porter’s diamond to the organization and market include. Firstly, the firm strategy and rivalry which involve competition in the home market that drives quality and innovation. Notably, the factor is observed among a lot of cars manufacturers where they compete extremely and keep on developing more quality and innovative products and services. Secondly, the factor condition which involves polished home buyers within the Germany who are aware and demand for quality, innovative, and advanced products and services creating global competition (Rugman & Verbeke, 2014). For instance, some part of the country has no speed limits, and customers demand conditions which involve more powerful cars. The vehicle manufacturing Company has in particular aimed at developing innovative engines to meet the customers’ demand.

Thirdly, the related and supporting factor involves inputs for a nation that drives success. Industries such as steel and iron industry that provide materials to the car manufacturing industry play a fundamental role in ensuring that the company maintains a competitive advantage (Dyer, Godfrey, Jensen, & Bryce, 2015). Also, the banks for capital, component suppliers, and workforce are crucial for the industry. Finally, factor conditions that include skilled engineers from renowned universities in Germany and the government help by pushing the sector through scientific research.