How Convincing Is Porters Model of National Competitive Advantage in Essay - 6

How persuade Is Porters Model of National Competitive Advantage in Explaining the Characteristics and Performance of the Business Systems of Major Economies - Essay pillow slipThis essay uses examples from Apple, CyberPower UK, Sennheiser, Sony and Lenovo to reach the conclusion that the framework is not a good assessor of business characteristics or performance in major economies, in an era of rapid globalization. Porters work focuses on home economies, leveraging home diamonds to create competitive advantages he advocates entrepreneurship and innovation as drivers of advantage, rather than patrimonial endowments such as land, raw materials, and size of the labour pool, the lack of which he believes can be overcome. He further argues that factor creation is supported by the quality of consumer demand, rather than its size the extent of relevant clustering and knowledge-sharing and competition in the economy. Researchers have found cross-country evidence for all of these concepts. However, Porters concept of national battle has also been criticized. Krugman argues that nations do not compete, like companies and the idea of national competitiveness can be used to drive inefficient policies into play. Other researchers have criticized Porters methodology, logical argument that global export shares are not a well-rounded measure of international competitiveness. Gray and Oz evaluate Porters narrow focus, which ignores macroeconomic environments and government policies, while Lazonic advocates that rivalry can lead to price-wars, change magnitude the drive to innovate. In addition to this, Rugman & DCruz have created a Double Diamond Model, designed to play in the gaps present in Porters model, which does not factor in the role of the multi-national enterprise. maybe the most case-based evidence in support of Porters Diamond framework emerges from his proposition on factor creation.