How convincing is Porters model of national competitive advantage in Essay - 15

How convincing is Porters model of national competitive advantage in explaining the characteristics and performance of the business systems of major economies - Essay Example For this reason, the model suggests that the nationhood of a homemade industry has a significant role in making the business venture achieve its advantage globally. The value of the nationhood to the industry is responsible for the development of the primary factors that enhances the support for the organizations in achieving the advantages available in the global completion (Pejko, 2014). Porter noted that there are four determinants of reaching the national competitive advantage. The four determinants, however, operate under the influence of the country of operation added with the competitive strengths of the firms. In this instance, Porter presents an argument that states that the competitive industries may take the form of unique clusters of the nation based firms (Rowe, 2009). Clusters have some correlations with the customers, technology, skills, the distribution channels and many more. The availability of these clusters will make the nations come up with business systems that also will lead to the competitive advantage and the realization of the economic success as a whole. An example, in this case, is the Japans automobile industry and the US semiconductor industry. The two industries have the linkage to the Porters diamond model in their operation that in this instance assists them in the creation of the unique business systems and the competitive advantages over other industries. Factor condition defines a nation’s position on the factors of production that is useful for competition through a given field of industry of operation such as the case of the skilled labour or infrastructure. Consequentially, the national factors enhance the provision of the pre advantages for the nation. As a result, each nation has a certain factor condition that, in this case, makes it favourable for the growth and the development of business systems and industries (Tallman, 2009). For instance,