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its a report 4500 words about car industry in Australia. summarize Porter’s Diamond theory and LINK it to the current situation for car industry in Australia, what happened ? why did they stop ? in 1500 words.
These points about Porter’s theory :
> Michael Porter (1990) tried to explain why a nation achieves international success in a particular industry
> identified four attributes that promote or impede the creation of competitive advantage
> Factor endowments – a nation’s position in factors of production necessary to compete in a given industry
> can lead to competitive advantage
> can be either basic (natural resources, climate, location) or advanced (skilled labor, infrastructure, technological know-how)
> Demand conditions – the nature of home demand for the industry’s product or service
> influences the development of capabilities
> sophisticated and demanding customers pressure firms to be competitive
> Relating and supporting industries – the presence or absence of supplier industries and related industries that are internationally competitive
> can spill over and contribute to other industries
> successful industries tend to be grouped in clusters in countries
> Firm strategy, structure, and rivalry – the conditions governing how companies are created, organized, and managed, and the nature of domestic rivalry
> different management ideologies
> vigorous domestic rivalry creates pressures to innovate, to improve quality, to reduce costs, and to invest in upgrading advanced features
> Government policy can
> affect demand through product standards
> influence rivalry through regulation and antitrust laws
> impact the availability of highly educated workers and advanced transportation infrastructure.
> The four attributes, government policy, and chance work as a reinforcing system, complementing each other and in combination creating the conditions appropriate for competitive advantage
> So far, Porter’s theory has not been sufficiently tested to know how well it holds up
* Other relevant and good information about the car industry in Australia will be uploaded.
graphs and diagrams are good
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