Diamond model
The diamond model and Porter 's Diamond or Competitive Advantage of Nations called ( original: Competitive Advantage of Nations ) is a technology developed by the economist Michael Porter thesis to evaluate the competitiveness of states in relation to individual industries.
Basics
Porter describes his model of how a company is competitive and according to his statement, also remains. " Competitiveness " is a company, if it generated a greater profit than direct competitors, or if it has the potential to achieve a bigger profit. Other corporate objectives are not considered. The factors represent a mutually influencing system of promoting ( by implication also inhibitory ) factors, which are partly influenced by the companies themselves, partially from the environment out. This is the model at the interface between economics, as a guideline for structural policy, and business administration, as the site analysis.
Determinants of the diamond model
According to Porter's view, the following factors determine a company's competitiveness against foreign competitors:
- Factor conditions: it is this is the availability of factors of production Human assets: factors that affect the workforce. Especially the number, training and costs for skilled workers play a role. Less important are unskilled workers, as a nation can hardly distinguish it from others.
- Material resources: availability and price of raw materials, energy and mineral
- Knowledge: know- how, which is present in the experts and institutions
- Capital Resources: availability and cost of providing capital
- Infrastructure: scope and cost of transportation and communication routes
These factors interact with each other. There are two other determinants that can influence the system, but these have little interaction:
- Coincidence factors beyond
- State: promoting innovation and competition, protecting the industries, stimulating the demand
Clustering
In clusters there is a strong competition pressure and colonize Related and supporting industries to. Usually arise cluster in locations with good factor conditions and a corresponding demand. Clusters have an increase in productivity, promote innovation and the stimulation of new business result. Companies that are located in such a cluster are equipped due to this out -readable from the diamond model advantages particularly well suited for international competition. Examples of such clusters are the watch manufacturing in Switzerland or the film industry in Hollywood.
Criticism
Porter's model of the development of competitive advantage in the professional world is not without criticism. In particular, Kenichi Ohmae, former head of the McKinsey office in Tokyo, criticized the exclusivity of Porter's criteria. According to this view Porter's criteria for businesses are necessary, to switch to the international stage, on the other hand, they are not sufficient if a company is internationally active again. There are other factors necessary in order to exist at this level can. In fact Ohmae, this leads on to a concept of " stateless " entity whose resources are no longer based on the original home. Porters criteria would in this environment, not pointless, but incidental to a truly international company, since the resources could be somewhere centrally or locally positioned so that the company each possess the most aggressive configuration. For an inside view of business as a result also represented Christopher Bartlett and Sumantra Ghoshal a similar view in their concept of the transnational corporation.
Ohmaes designs are theoretically very obvious. However, there is no evidence empirically, since even the largest companies have not yet taken little steps to " statelessness ". Even little -bound states companies like Swiss-Swedish ABB, the US-based IBM, Japan's Sony and others still have strong roots in the main markets. So the criticism for lack of empirical evidence remains weak.