Michael E Porter's Diamond Model explains The Competitive Advantage of Nations

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Michael E Porters “The Diamond Model” was published in 1990 in his book ”The Competitive Advantage of Nations”. It’s a model that can help us understand why a nation becomes the home base for successful international competitors in a particular industry and other nations don’t.
He argues, that the old theories - made by Adam Smith and David Ricardo - are not sufficient to explain competitiveness between technology advantage nations of today.
Section
0:00 Introduction of the author and the purpose of the model
0:39 The models four broad determinants plus two influencing determinants
1:36 1. Determinant - Factor conditions with example
3:43 2. Determinant - Demand conditions with example
5:42 3. Determinant - Related and supporting industries with example
6:56 4. Determinant - Firm strategy, structure, and rivalry with example
8:26 Determinant - Governmental policy - influence on the four broad determinants
11:37 Determinant - Chance - outside control
13:03 An example - The German automobil industry
13:26 The German automobil industry - Factor conditions
15:04 The German automobil industry - Demand conditions
16:06 The German automobil industry - Related and supporting industries
17:20 The German automobil industry - Firm strategy, structure, and rivalry
18:38 The German automobil industry - Chance and Government
19:30 Criticism of the model
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Пікірлер: 38

@mandyliu3916 6 жыл бұрын

god bless me before the exam.

@flixabout 4 жыл бұрын

Hope your exam has gone well

@nikolzsolnoki9027 4 жыл бұрын

I saw a few of you commented on the speed of the video. English is my second language so I would be glad if everyone would speak like this. :D And most importantly great content, thanks.

@flixabout 4 жыл бұрын

Thanks for your kind feedback. Thank you for commenting on speed. Nice to know that all speeds are used. We hope you tell others and subscribe to our channel.

@memoryshizzytachiona6707 3 жыл бұрын

Very informative ,I can now clearly understand the Porter's framework now.

@flixabout 3 жыл бұрын

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@godzillasaurus9809 7 жыл бұрын

Very good explanation

@flixabout 4 жыл бұрын

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@wrongkonnector 2 жыл бұрын

Thank you

@flixabout 2 жыл бұрын

@Mrityunjay Kumar. You're welcome. We hope you tell others and subscribe to our channel.

@Cekeshe 6 жыл бұрын

Great explanation and use of examples. Helped a great deal.

@flixabout 6 жыл бұрын

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@joun7665 7 жыл бұрын

Thank you so much for this video. I can understand quickly because your speed of speaking that is slowly and clearly due to English is not my mother language

@flixabout 7 жыл бұрын

Thank you. If you later want to see and hear the video in a faster pace, then you can set the speed to 1.25

@Tryingtocheerup 7 жыл бұрын

Great video, really detailed and clear, but a bit too slow for my liking so I watched it at 1.25x speed :)

@hibiscusflower5911 5 жыл бұрын

Thanks for the tips, I absorbed the information through one glance

@munnyah 4 жыл бұрын

Great tip. Helped me take this in quickly.

@flixabout 4 жыл бұрын

We made the videoes so they can be set up in speed. It's an advantage if you only need to hear them. If you want subtitles, speed 1.0 is best.

@Rogerfuk 3 жыл бұрын

So an MNE may choose to have a home base or headquarters based in a certain country due to the advantages or strengths of that country?

@flixabout 3 жыл бұрын

Yes - that may be one of the reasons. In fact, we are seeing IT companies move their headquarters to Silicon Valley. This is where there are people with competencies and the universities that educate the next generation of IT people. There is also venture capital. Just to name a few of the conditions. However, there are many other factors that may come into play.

@Rogerfuk 3 жыл бұрын

Great video, and thanks for taking the time to reply. Is it fair to say that some of a firms activities, such as R/D or access to capital may be done purely under a single diamond, while its other activities overseas use the double diamond approach?

@flixabout 3 жыл бұрын

When you say Double Diamond. Then you think of the design process developed by the British Design Council in 2005. If so - then all four elements of this model are normally done in the main market. It appears from Porter's diamond that competition must be strong in the domestic market so that companies are exposed to competitive pressure from the start. It is the precondition for being strong internationally. But you will probably be able to find constructions like the one you mention - do you have something specific in mind?

@stephanegauthier4736 6 жыл бұрын

your voice is beautiful

@flixabout 6 жыл бұрын

Thank you for your kind words. Hope you tell it to others and subscribe to our channel.

@Ezinma88 6 жыл бұрын

The first video I've ever had to speed up. Glad of the thorough content. But, honestly, your narration is aggressively slow. Not just here, but on your other videos too.

@flixabout 6 жыл бұрын

"Glad you like the content, that is the most important for us. Our consideration about the speed of our videos is, that it sounds better to speed up a video than to slow it down. So we often recommend people to watch the videos at 1,25 or even 1,5 speed. We hope you and others will spread this message."

@erickotienookeyo5856 6 жыл бұрын

@flixabout 6 жыл бұрын

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@richsit 5 жыл бұрын

@@flixabout ??? He said "OK"...

@flixabout 5 жыл бұрын

@@richsit OK synonyms: all right, right, very well, very good, fine, fair enough, okey-doke, okey-dokey. But you are right. It is a very short indication that allows for interpretations. We choose the positive one. Hope you can accept it.

@michaelamponsah9970 3 жыл бұрын

VW is not located at the south of Germany

@flixabout 3 жыл бұрын

You're right. They are located in Wolfsburg in the middle of Germany. However, this does not change the fact that they are part of the very tough competition in the German car industry.

@SleuthySloth 7 жыл бұрын

God i hate my life

@flixabout 4 жыл бұрын

Hope you have a better day today.

@nicolaijensen1548 3 жыл бұрын

yo my guy why u gotta do all the fancy pansy words just simplify this vid, im dumb idk half the words u say #NoHate #honeybadger

@flixabout 3 жыл бұрын

Hi Nicolai This is an academic video where we have chosen to use the words and phrases that the author uses in his book. We then try to simplify the meaning in examples along the way and in the whole section example. We hope you understand our rationale for using academic terms. Good luck for your further study.