How Might Porter’s Diamond Explain Why Some Locations Produce Firms with Sustained Competitive Advantages in Some Industries More Than Others?

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How might Porter’s Diamond explain why some locations produce firms with sustained competitive advantages in some industries more than others? Answer with reference to examples from at least two different industrial sectors.

Answer.
Porter’s diamond model is a model that can help understand competitive position of location in global competition that suggest a inherent reason why some firm within location are more competitive that other on a global scale. The argument is that the local are provided organization by specific factor, which created more potential competitive advantage for country or region. The Porter's model includes 4 drivers of local advantage, which are shortly described below:
1. Local factor conditions
A company in local is exploited by factor conditions. Factor conditions can be seen as advantage factors such as workforce shortage, as a factor potentially strengthening competitiveness, this factor may heighten companies' focus on automation and zero defects. For example, in analyzing of film production industry in the Hollywood, has pointed out the local skilled labor, in the area. Also, resource constraints may encourage development of substitute capabilities; Japan's relative lack of raw materials has reduced and zero defect manufacturing.
2. Local demand conditions Focusing on the domestic market provide the primary driver of growth, innovation and quality improvement. The strong domestic market is stimulates by stat up the to a slightly expanded then became bigger organization. The firm potential is depends on the size of market, put more emphasis on improvement to local market may larger than foreign market and more demanding can be seen as a driver of growth and improvements. As an illustration, the case of Germany automobile companies like Mercedes, BMW, Porsche etc. have known as high-performance automobile industry in the world.…...

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