Global strategies and multinational link to Porter's diamond of national advantage asapplied to Zimbabwe including demand conditions, factor conditions, related and supporting industries, and firm strategy, structure and rivalry.
Establishing SBUs, strategic business units, in international markets is a global business strategy that a business organization can embark on as its expansion strategy. Expanding into the global market however has with it some challenges that need to be managed. The varying business environment, from the local market, is one of the challenges than needs to be carefully managed. The understanding of
Porter’s Diamond Model better positions a business in the global market. This paper is a discussion of the applicability of Porter’s Diamond Model of Nations’ competitiveness. In this discussion the case of KJ Transport, a local freight transport
planning to venture into international business, is used. KJ Transport Zimbabwe is planning to expand into South Africa and Botswana market.
Inhaltsverzeichnis (Table of Contents)
- Global Strategies
- Porters Diamond Model
- International Strategies
- Factors of Production Conditions
- Demand Conditions
- Related and Supporting Industries
- Firm Strategy, Structure, and Rivalry
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the applicability of Porter's Diamond Model of Nations' competitiveness, using the example of KJ Transport, a Zimbabwean freight transport company planning to expand into South Africa and Botswana. The paper aims to demonstrate how the model can be used to assess the competitiveness of a nation and its industries, and to identify the factors that will influence the success of a company's global expansion strategy.
- Factors of Production Conditions
- Demand Conditions
- Related and Supporting Industries
- Firm Strategy, Structure, and Rivalry
- National Competitiveness
Zusammenfassung der Kapitel (Chapter Summaries)
- Global Strategies: Introduces the concept of global business strategies and the challenges of expanding into international markets. Highlights the importance of understanding Porter's Diamond Model for navigating the global market.
- Porters Diamond Model: Explains the core principles of Porter's Diamond Model, emphasizing its relevance for analyzing a nation's competitive advantages in specific industries. Underscores the need for thorough research to understand the factors that make a market competitive.
- International Strategies: Discusses the three main international business strategies: multi-domestic, global, and transnational. Emphasizes the importance of considering factors such as production costs, demand conditions, supporting industries, and firm structure and rivalry.
- Factors of Production Conditions: Explores how access to resources like labor and fuel can provide a competitive advantage. Highlights the importance of efficiency in resource deployment.
- Demand Conditions: Emphasizes the crucial role of strong domestic demand in attracting MNCs and fostering industry competitiveness. Illustrates how demand patterns can influence the success of a company's international expansion.
- Related and Supporting Industries: Discusses the impact of related and supporting industries on a nation's competitiveness. Emphasizes the importance of a strong supplier base for cost-effective and timely input acquisition.
- Firm Strategy, Structure, and Rivalry: Examines the influence of national conditions on firm organization, management, and rivalry. Highlights how competitive rivalry within a nation can drive innovation and efficiency.
Schlüsselwörter (Keywords)
Porter's Diamond Model, national competitiveness, global strategies, international business, factors of production, demand conditions, related and supporting industries, firm strategy, structure and rivalry, MNCs, global expansion, KJ Transport, Zimbabwe, South Africa, Botswana.
- Quote paper
- Kudzanai Sibiya (Author), 2015, Application of The Diamond Model in Zimbabwe Context, Munich, GRIN Verlag, https://www.grin.com/document/298249
