Applying the Porter’s Diamond Model to the Shoe Industry in China and Flat-screen TV Production in Taiwan

1. 0 Introduction

In this essay, we will be discussing the Porter’s Diamond Model and how it can be applied in the specific fields of shoe industry in China and flat-screen TV production in Taiwan. We will also be looking at how the model can help these industries to achieve a competitive advantage.

2. 0 Theoretical Framework

2.1 What is Porter’s Diamond Model?

The Porter’s Diamond Model was developed by Michael E. Porter in his book “The Competitive Advantage of Nations” (1990). It is a framework that is used to assess the potential for a nation to become successful in a certain industry. The model looks at four main factors that affect an industry’s competitiveness: factor conditions, demand conditions, related and supporting industries, and firm structure, rivalry, and government policies.

2. 2 The Specific Fields of Application for the Porter’s Diamond Model

The Porter’s Diamond Model can be applied in any industry or country. However, it is most commonly used in the fields of economics, business, and international relations.

2. 3 How can the Porter’s Diamond Model be Used in the Specific Fields?

The model can be used in the specific fields to help identify the areas where a country has a competitive advantage. It can also help to assess the potential for a country to succeed in a certain industry.

3. 0 Empirical Analysis

3.1 Shoe Industry in China

3.1. Factor Conditions in the Shoe Industry in China

The shoe industry in China is very competitive due to the large number of manufacturers and suppliers in the country. There are also many foreign companies that have set up operations in China, which has helped to create a more competitive environment. The Chinese government has also been supportive of the industry by providing subsidies and tax breaks to manufacturers.

3. 1.2 Related and Supporting Industries in the Shoe Industry in China

The shoe industry in China is supported by a number of related and supporting industries. These include the textile industry, which supplies the leather for shoes, and the chemical industry, which provides the materials for adhesives and soles.

3. 1.3 Firm Strategy, Structure and Rivalry in the Shoe Industry in China

The shoe industry in China is highly competitive due to the large number of manufacturers and suppliers. There are also many foreign companies that have set up operations in China, which has helped to create a more competitive environment. The Chinese government has also been supportive of the industry by providing subsidies and tax breaks to manufacturers.

3. 1.4 Government Policy in the Shoe Industry in China

The Chinese government has been supportive of the shoe industry by providing subsidies and tax breaks to manufacturers. It has also implemented policies that have helped to improve the quality of products and encourage innovation.

3. 2 Flat-screen TV Production in Taiwan

3.2.1 Factor Conditions in Flat-screen TV Production in Taiwan

Taiwan is one of the leading producers of flat-screen TVs in the world. The country has a large number of manufacturers and suppliers that produce a wide range of products. Taiwan also has a highly skilled workforce and a strong research and development base.

3. 2.2 Related and Supporting Industries in Flat-screen TV Production in Taiwan

The flat-screen TV production industry in Taiwan is supported by a number of related and supporting industries. These include the semiconductor industry, which supplies the chipsets for the TVs, and the optoelectronics industry, which provides the LCD panels.

3.2.3 Firm Strategy, Structure and Rivalry in Flat-screen TV Production in Taiwan

The flat-screen TV production industry in Taiwan is highly competitive due to the large number of manufacturers and suppliers. There are also many foreign companies that have set up operations in Taiwan, which has helped to create a more competitive environment.

3. 2.4 Government Policy in Flat-screen TV Production in Taiwan

The Taiwanese government has been supportive of the flat-screen TV production industry by providing subsidies and tax breaks to manufacturers. It has also implemented policies that have helped to improve the quality of products and encourage innovation.

4. 0 Conclusion

The Porter’s Diamond Model is a useful tool for assessing the competitiveness of an industry. It can be used to help identify the areas where a country has a competitive advantage. The model can also help to assess the potential for a country to succeed in a certain industry.

FAQ

The Porter's Diamond Model is a framework that is used to assess the relative competitive advantage of firms within an industry.

The model can be used to explain a company's competitive advantage by looking at the internal and external factors that contribute to it.

Some of the limitations of the Porter's Diamond Model include its static nature, its focus on manufacturing industries, and its lack of consideration for other forms of competition.

Globalisation has affected the implementation of the Porter's Diamond Model by making it more difficult for firms to maintain a competitive advantage due to increased competition from abroad.

Organisations from all industries can benefit from using the Porter's Diamond Model by gaining insights into the factors that contribute to their competitive advantage.

There are other similar models which could be used instead or in addition to help understand an organisation's competitive advantage within their industry/sector, such as Michael Porter's Five Forces Analysis or SWOT Analysis.