How convincing is Porters model of national competitive advantage in Essay - 8

How convincing is Porters model of national competitive advantage in explaining the characteristics and performance of the business systems of major economies - Essay ExampleHowever, irrespective of the individual firms, almost countries as a whole have achieved a higher competitive position as compared to other firms (Baker, 2007). This topic will shed some fire up on how the nations achieve competitive advantage by using Porters Diamond Model. This model focuses on the determining factors of national competitive advantage. The paper will discuss the issues and loopholes of the Porters Diamond Model and how they fail to answer certain circumstantial problems.Porter (1990) explained the competitiveness of a nation found on the four different parameters, which includes factor conditions, demand conditions, supporting industries and firms strategy, structure and rivalry.Factor Conditions The factor conditions include the production factors of a nation, like gentle resources and hu man capital, physical resources, knowledge base, financial strength. The quantity and quality of the available human resources determine the national production capabilities.Demand Conditions The demand conditions explain the level of demands of products in the home untaught. The higher level of demand influences the pace of product innovation and improves service quality.Firms Strategy structure Rivalry This parameter suggests how the firms in a country are organized and how they determine the domestic competitiveness. It mostly reflects the organizational cultural trends of the nation. Certain organizational behaviour and pattern of activities provide added advantage to them in wrong of other foreign companies.Relating and supporting industries The presence of other industries influences the competitive position of an organization. The domestic firms can leverage the presence of other industries in order to progress to competitive advantage.The four parameters of the Diamond mo del are mostly industry oriented. The diamond model is focused on achieving a competitive advantage in a particular industry.