Porter's Diamond Case Study

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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.

Arslan Musaev

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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.


Arslan Musaev

Page 5

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
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