Porters Model of National Competitive Advantage Essay

ostiarys Model of National Competitive Advantage - Essay ExampleThis paper illustrates that in the book The Competitive Advantage of Nations Michael Porter discussed the reasons why some nations, social groups and economic institutions advances than others. His work focused on the collective competitive advantages of the rigids in the nation rather than the performance of the individual firms. The penchant of his work is positive rather normative focusing on the international patterns of competitive advantage. He developed this model by combining theories in the palm of strategies to compete and international economics and performed an inductive and deductive analysis. Porters model was a result of the analysis and the study of 100 industries in 10 countries which included counties from Europe, Asia, and America, regarding their competitive performance. His work showed how industrial competiveness with a different insight can be incorporated into companys schema. Porter used str ategic management theories and analyzed them with international trade and economy. The book emphasizes the fact that the national competitiveness is determined by the firms rather than the nations. The theory suggests that the influence the nation has on the competitiveness of the firms depends on the firms competitive success that the environment built over time. The nation acts as a home(a) base for the firms, this home base helps in developing the firms strategy, culture, character of its management, the availability and quality of resources, technology and helps it in establishing prior to its expansion internationally as the firms recrudesce domestically before they plan their expansion internationally. The theory basically analyses the characteristics, rather four variables of the national environment which are the basis of competitive advantage and determines firms ability to compete and sustain itself in international markets. The Porter referred these variables as Nationa l Diamond. These four variables are firms strategy structure and rivalry, factor conditions, demand conditions and related and supporting industries.