This website uses cookies to ensure you have the best experience. Learn more

Diamond Model Of Porter With Reference To Indian Automobile Industry

1907 words - 8 pages




Submitted To
Prof. A. K. Kher
Submitted By
Rameez Bagban 03
Shahanawaz Mujawar 11
For the academic year

The Indian automobile industry is one of the key drivers of industrial growth and employment, which will gain rapid importance. In order to accelerate and sustain growth in the automotive sector, a roadmap is needed to steer, coordinate and synergize the efforts of all stakeholders. Exogenous and endogenous factors affecting industry also affects the competitiveness of the firms. Competitiveness ...view middle of the document...

Competitiveness is a special challenge, because there is no single policy or grand step that can create competitiveness. Improving competitiveness is a marathon, not a sprint. How to sustain momentum in improving competitiveness over time is one of the greatest challenges countries are facing.

Porter (1990) contributed the diamond model on competitiveness, which analyses national (or industry) competitiveness through four major dimensions: factor conditions, demand conditions, firm strategy structure and rivalry, and related and supporting industries. Porter (1990) concluded that due to various national characteristics, nations cannot succeed in all industries, and thus it is important to identify and develop their internationally competitive industries. Therefore, he proposed the diamond model with four major (and two additional) determinants of competitive advantage in a particular industry.
Porter’s diamond model provides an analytical framework with multi- measurements favorable for national or industry competitiveness. According to Porter (1990) nations are most likely to succeed in industries or industry segments where the diamond factors are mostly favorable.

Factor Conditions:
For production are the inputs and infrastructure necessary for competition, which include:
• Human resources: Quality and quantity of skilled labour, cost of personnel, and labour skill variety;
• Physical resources: “The abundance, quality, accessibility, and cost of the nation’s land, water, mineral, or timber deposits, hydroelectric power sources, fishing grounds, and other physical traits.”
• Knowledge resources: Market, scientific, technical knowledge residing in a nation’s research institutions;
• Capital resources: Capital availability and cost to finance industries. Capital resources can be affected by the rate of savings and national capital market structure;
• Infrastructure: Availability and quality of infrastructure, including communication system, transportation system, payment or funds transfer, health care, and so forth

3.2. Demand Conditions:
The nature of buyer needs, the size and growth rate of home demand, and the transferability of domestic demand into foreign markets. Porter has also described in his location competitiveness study, about the advantages arising by having sophisticated and demanding local customers or customers with unusual need for specialised varieties that are in demand.

3.3. Related and Supporting Industries:
Include parts and service suppliers and distributors in the supply chain. As Porter stated, competitive supplier industries can provide “efficient,
early, rapid, and preferential access to inputs”, which are basic production needs. Moreover, the geographic proximity with internationally competitive suppliers in the home nation helps build coordination and a communication network, which in turn...

Other assignments on Diamond Model Of Porter With Reference To Indian Automobile Industry

Engineering Essay

2514 words - 11 pages lead the way at 7.9% per annum (The Soft Drinks Industry of India, 2009). 2. Extended Version of Porter’s National Diamond Figure 1: Porter’s National Diamond Source: Rugman and Collinson (2009, p.148) 1 Porter’s National Diamond Framework is used to assess the competitive advantage of nations and allows you to understand the comparative position of a nation in global competition. 2.1 Factor Conditions The Indian climate is very

Differentiating Between Market Structures Essay

708 words - 3 pages within the diamond industry are very effective and have allowed De Beers to remain the leader in the diamond industry. For example, when De Beers limits the supply of diamonds to the market this allows De Beers to control and set the prices of diamonds. It is difficult for other diamond companies to compete with this industry giant because De Beers is the supplier. In addition, De Beers has been in business for over a century and there marketing

Alignment Of Industrial Needs To Education

3597 words - 15 pages industry. INTRODUCTION Rapid evolution of technologies [2] and diverse education landscapes demands for institutes and industry to join hands. The global nature of business requires institutes to play a vital role to impart a quality education and skills in the students to be competitive on the leading edge of technology. Indian education model of four year technical degree programs followed by a two year specialized master’s program is the typical

De Beers And The Conflict Diamonds

1074 words - 5 pages De Beers and the Conflict Diamonds De Beers is the most recognizable name in the diamond industry and since it was established in 1888 by Cecil Rhodes; the company have been linked to the “blood diamond” trade because for a long time they had the control of supply and demand of the diamond industry. De beers dominated the diamond market for the best part of the 20th century, but the creation of synthetic diamonds and the discovery of new


1821 words - 8 pages Knorr 4 4.2 Solution to decrease the power of customers 6 4.3 Solution to improve myself 6 5 Conclusion 6 Reference 7 How to get along with the dominant supplier—KNORR-BREMSE 1 Abstract In the report, the background of CRRC is introduced and 3 challenges are presented when CRRC gets along with the dominant supplier--KNORR-BREMSE, then 3 challenges are analyzed using Five Forces model of Michael Porter, finally solutions to the 3

Arcadia Group In India

1826 words - 8 pages industry. According to figure 6, the supply and distribution network of the apparel market and industry is connected with whole value chain in India.Supply-side economies rate from lower costs per unit and Demand-side gain interests from its network influence that customers will to buy products (Porter, 2006). However, According to Ramesh and Bahinipati (2011), how successful of supply chain management is depend on customer service, quality, driven

Ge Wind Strategy Case Study

4576 words - 19 pages ecomagination expands our view form “traditional” sustainable technologies like wind, solar and fuel cells to solutions for heavy industries like mining, unconventional resources, and oil and gas…” (Deb Frodl, Global Executive Director ecomagination, GE) Page ii 05.01.2014 1. Industry Analysis In this section, the diamond model (Porter, 1990) will be used to analyse the forces of industrial competitiveness of Wind Turbine Manufacturing


334 words - 2 pages -flight entertainment, customer services and many more areas. The net result of this competition between companies is an overall slow market growth rate. One of the forces that Porter describes is Entry into the industry. In the world today, the airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The biggest for this is the cost of entry. The airline industry is one of the most expensive

Value Drivers In Automotive Sector

2332 words - 10 pages million people in the auto industry may see further job losses with the closure of many ancillaries dependent on Maruti Suzuki. 4. FTAs: As part of the FTA negotiations (e.g. the on-going one with the EU), foreign countries demand duty cuts on their automobile exports to India. If it happens then Indian auto sector would face increased competition as their price competitiveness would be hit. Also the industry fears this may result in decrease


7578 words - 31 pages in 1937 to offer German citizens a German produced car, now includes makes from seven different countries and has hails China as one of its largest markets with an 18.6% market share at the end of 2008 (Volkswagen, 2008); and Tata, the Indian conglomerate owns two venerable English brands, Jaguar and Land Rover. While the automotive industry has grown and thrived as a result of globalization, it also has, and will continue to face risks that if

Financial Restatement

584 words - 3 pages withdraw from the deal based on any problems with the financial statements of Diamond Foods. The audit committee investigation was then taken up by the Securities and Exchange Commission where it was discovered that about $20 million in “continuity “ payments that was made to walnut growers in August 2010 and about $60 million in “momentum “ payments in September 2011 weren’t accounted for in the correct periods. (Harris, 2012) With the

Similar Documents

With Considered Reference To Scholarly Literature On The Subject, Assess The Advantages And Disadvantages Of Cannabis Legalisation In Australia

2135 words - 9 pages 2.  With considered reference to scholarly literature on the subject, assess the advantages and disadvantages of Cannabis Legalisation in Australia. Dennis, M.L. & W White (1999) ‘The Marijuana Legalization Debate: is There a Middle Ground’. In JA Inciardi (ed), The Drug Legalization Debate.  Sage Publications. Ferguson, D.M.. & L.J. Horwood (2000) ‘Does Cannabis Use Encourage Other Forms of Illicit Drug Use?’, Addiction, 95(4): 505

With Reference To Organisations Or Industries That You Know, To What Extend Do You Think That Recent Changes In The Uk Economy Will Have Inevitably Damaged The Long Term Profits Of Businesses That...

339 words - 2 pages With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? Long-term profit is the amount of money a business makes (revenue minus costs) over a long term period. In this case it is referring to the profitability of a company and how much money it will be able to make in the future

Provide A Brief Overview Of The Juvenile Justice System In Ireland And Analyse Its Response To Young Offenders Making Reference To The Children Act 2001 In Your Answer

1224 words - 5 pages young offenders making reference to the Children Act 2001 in your answer. Responsible for driving and leading reform in the area of youth justice, and located in the Department of Children and Youth Affairs, is the executive office of Irish Youth Justice Service. The service is run by officials from the Department of Children and Youth Affairs and the Department of Justice and Equality, who’s Ministers, are both responsible for the Children Act

To What Extent Do You Agree With The View That The Commonwealth Failed Because Of Its Lack Of Reforms? (30 Marks)

796 words - 4 pages To what extent do you agree with the view that the Commonwealth failed because of its lack of reforms? (30 marks) The Commonwealth lasted from the 1649-1653 and was made up of the Rump and the Nominated Assembly. At the time there were many issues that needed reform such as religious, legal, electoral, taxation and the constitution. It is fair to say that the Commonwealth did fail because of their lack of reforms to some extent; however this