BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The demand in the home market
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Presence of international competitive supplier industries
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The nation’s stock of knowledge
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All of the above
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Detailed explanation-1: -Which of the following are examples of factor conditions under the Porter “diamond” model? The demand in the home market. The nation’s stock of knowledge. The presence of international competitive supplier industries.
Detailed explanation-2: -These four factors are firm strategy, structure and rivalry; related supporting industries; demand conditions; and factor conditions.
Detailed explanation-3: -Factor Conditions Basic resources include land, natural resources and unskilled labor, while advanced resources involve capital, infrastructure and cutting-edge technology-resources that a nation or organization can develop for themselves.
Detailed explanation-4: -An example where Porter’s Diamond can be used to explain a regional advantage is in Germany’s luxury high power car manufacturing industry, for brands such as Audi. The car manufacturing industry in German has a regional advantage because it satisfies the four key factors in Porter’s Diamond.
Detailed explanation-5: -Factor conditions are those elements that Porter believes a country’s economy can create for itself, such as a large pool of skilled labor, technological innovation, infrastructure, and capital.