Each country has certain advantages over the others, in industries, companies or groups. all
companies have different strategies they use e to be analyzed through the Porters Diamond. It will
also explain the differences and the ways various governments offer monetary and social
empowerment to its people and gain the international edge. For the competitive advantage of
nations Porters Diamond offers one, that can help to understand the comparative position of nations
in the global system. each country has an advantage over other countries in terms of various factors,
some of which is land, favourable location or resources. resources can be divided into 5 categories -
they land (land, fertile land), natural resources such as minerals
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The literacy rate is 95%. A high percentage of high school
graduates and enter universities, about 20% of university graduates get scientific degrees.
Samsung has ensured the creation of their own database of scientists through the Samsung
GSP(Global Scholarship Program). The GSP was created to nurture a group of talented
individuals with strong business skills, that in the future could become leaders in the
Samsung company.
Demand conditions
Korea is one of the developed countries and well known in the field of electronics and
telecommunications. If we analyze the financing of the Korean government in the field of IT
policies, we will find out that they are constantly improving IT infrastructure and facilitate
the use of information and technology. In South Korea, more than 90% of the country area is
wired with broadband Internet. Approximately 14% of South Korean population are already
using LTE Smartphone’s, In the US this ratio is less than 5%. This made a great demand on
high-tech Smartphone’s in home market which subsequently lead Samsung to world
leadership in the production of high-tech Smartphone’s.
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Electronics trade exceeded 45 billion and the projected growth is
9% per year. Korean government also plans to expand its financial support in the field of
research and development (Emmot, 2010). Information and telecommunication industry in
South Korea satisfy all aspects of porter 's Diamond and stay in sync that provides
competition among its employees. Country is a world leader and has the advantage over other
because all four aspects of Porter’s Diamond are met.
Factor conditions
Germany has long been known as a manufacturer and exporter of quality products. The
country has earned this reputation mainly because of engineering capable workforce. German
nations spend a lot of years to develop their skills through a highly qualified engineering
education, which is why it has brought Germany into a leading position in the world market
for the production of high-tech car such as Mercedes Benz.
Demand
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Luxury car sales have been and will grow worldwide due to the growing proportion of
wealthy clients, especially in developing economies. German manufacturer of luxury cars
such as Mercedes constantly competes in the domestic market with Volkswagen and
The history already observed such a situation, when BMW built the production facilities in Spartanburg, South Carolina. In 1990’s the new BMW factory in North America turned the struggling region into the new center of the automotive production and
3.0 Concepts 3.1 Resources and Capabilities In order to achieve and sustain competitive advantage, a business needs both resources and capabilities. Resources are assets that are owned or employed by an organization. The organization utilizes and uses these assets to carry out their business operations. Resources can be grouped either tangible assets or intangible assets.
Porters Five Forces Analysis: Samsung Electronics Introduction Samsung Electronics focuses in three specific areas; Consumer Electronics, IT & Mobile Communications and Device Solution. Porter’s Five Forces model has been used to analyse Samsung Electronics competitive position within the global market they operate in. By using this model, an evaluation of their current position will highlight which of the five forces are “affecting the intensity of competition in an industry and its profitability level” (Jurevicius, 2013). Nevertheless, when conducting analysis on an international company such as this, studying of market trends is already carried out thoroughly to ensure that they are fully aware of that market, in order to achieve success and maintain within it. With this in mind, it would be considered that Samsung Electronics would have a relatively good competitive advantage against other rival companies.
As from the research found, Samsung are originally from South Korea. This means it is around the world. Hence, there will be a change in many aspects of global operations according to the local conditions. Samsung has also had to change its products to match the rapidly changing consumer preferences in certain markets. Samsung is
To do this it needs to have a competitive advantage over its its rivals. A competitive advantage is something a company does better than its rivals that gives it an advantage over its rival. Porter (1988) states that a firm performs many activities that can contribute to a firms relative cost position and create a basis for differentiation which can create a cost advantage that gives a firm a competitive advantage over its competitors. A company’s competitive advantage and competitive strategy are both interrelated. Competitive strategy is defined by Porter (1980) as a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out those goals.
INTRODUCTION: Mercedes Benz is a globally known brand, originated in Germany. Benz is specialized in automobiles like cars, buses, trucks, etc. EXTERNAL BUSINESS ENVIONMENT: The automobile industry is a multi-billion industry with large brands in market. It’s important to carry out analysis on microenvironment before formulating strategies.
Threat of Substitutes 4. Bargaining Power of Buyers 5. Power vested by Suppliers 1. Competitive Rivalry: According to Porter the competitiveness in any sector is significantly increased by the number of players operating in the field and their major competencies.
(Peter Hintereder and Martin Orth – 2013). Regarding to studies, Germany is Europe’s largest economy, accounting for roughly a quarter of European GDP. It is the world’s fourth largest manufacturing producer and the fourth largest producer of automobiles. It is the world’s third largest commercial services exporter; the third most important source of foreign directs investment (FDI); is third in global patents, and boasts the third most developed financial sector. As well, Globalization helped Germany in terms of investment.
Name: Jasmit Singh ID: J13013948 Section: DB 4 Lecturer: Ms Lingkeswari Table of contents Content Page Introduction 3 Market segmentation 4-5 Product strategy 6-7 Pricing strategy 8 Place strategy 9 Promotion strategy 10 Conclusion 11 Reference 12 Introduction BMW (Bayerische Motoren Werke AG) is a German automobile company which was founded in 1916 and is headquartered in Munich, Bavaria, Germany. BMW is now one of the largest car manufacturer in the world for its exceptional level of quality and producing cars with sporty driving characteristics. The BMW company 's slogan in English is "The Ultimate Driving Machine" or Sheer Driving Pleasure" which was originally translated from German slogan which is
5.3 Country position and attractiveness According to Porter (1990), the level of competitiveness on a country depends on the capacity of the industry and the skills to upgrade and innovate. The competitive advantage is produced and sustained on the differences in values, economics structures, culture, institutions, history, and other factors that contribute to competitive success. Therefore, companies as well as nations have to fight for a position on the market as centers of production or industrialization of products.
The customers of Mercedes Benz look for products that have certain benefits that hold value for them. Therefore, in terms of benefits sought, they seek for high-end integrated technology and functioning of the car, along with consistency in performance and most importantly they will look to purchase cars that will offer high sustainability and reliability. The Mercedes is purchased among customers that heavily use the product on a daily basis. As mentioned in the demographics segmentation section that people who purchase these cars are in the high income class group, which means that these customers will regularly use a mode of transportation to travel to workplaces.
• Change: Samsung always comes up with new products and innovative services in order to fulfill their customers’ needs and demands. • Integrity: Samsung makes sure that ethics are followed at each and every level and thus stay faithful and give respect to its stakeholders (Globart, 2012). • Co-prosperity: For a business to prosper, it is very much needed that auxiliaries, employers and others too, must be given opportunities to flourish. Samsung strongly believes in it and move ahead by taking everyone together. They are fulfilling their responsibilities towards society and environment as well by being a responsible corporate citizen (Annual Report, 2013).
It operates in virtually every country in the world with successful product expansion and business strategies The following diagram gives the organization design diamond
English 102 Essay 2 Jalal Bou Kanaan Outline “The Apple and Samsung showdown” I. Introduction: General Background information + Thesis: “what makes those companies not alike are the phones they release through the years, but are they that different?” II. “example of two leading rival companies in the field of smart phones” A. Information about the Samsung Galaxy Note 4 B. Information about the Apple iPhone 6 Plus III.
Applying Porter’s Diamond model of nations which consists of four major attributes to determine the global competitiveness in Bahrain: Factor Conditions in Bahrain The nation’s relative