The diamond theory of M. Porter, the representative of this theory, explains that the micro-foundation of national competitiveness lies in the competitiveness of manufacturers. Porter attaches great importance to the role of enterprise competitiveness, which means that promoting the internationalization of enterprises through foreign direct investment can not only enhance the competitiveness of manufacturers, but also improve the micro-foundation of national competitiveness.
Diamond model, also known as diamond theory, is a normative explanation of national competitiveness and a brand-new method to understand the global competitive position of a country or region. Now it has become an indispensable part of international business thinking.
The diamond theory of M. Porter, the representative of this theory, explains that the micro-foundation of national competitiveness lies in the competitiveness of manufacturers. Porter attaches great importance to the role of enterprise competitiveness, which means that promoting the internationalization of enterprises through foreign direct investment can not only enhance the competitiveness of manufacturers, but also improve the micro-foundation of national competitiveness.
First, the basic concept of diamond model
Factors of production-including human resources, natural resources, knowledge resources, capital resources and infrastructure.
Demand situation-mainly domestic market demand.
Performance of related industries and supporting industries ―― Whether these industries and related upstream industries are internationally competitive.
Enterprise strategy, structure and performance of competitors.
These four elements have two-way functions, and the formation of diamond system has two variables: government and opportunity. Opportunities are uncontrollable and can't be met; Government policy is also a big variable, it is not decisive, and its role needs to be based on four elements (the interaction and cooperation of the four elements).
Expand your knowledge of diamonds.
Diamonds not only refer to a single enterprise or industry, but also take many forms.
Diamonds can be factories or enterprises, such as Toyota, KFC, Haier, Microsoft, Rio Tinto and so on.
Diamonds can be high-quality industries, such as network service industry in Silicon Valley, automobile industry in Japan, luxury jewelry industry in Italy, small luxury yacht industry in Norway and icebreaker manufacturing.
Diamonds can be a productive and profitable industry, or an administrative entity of a group company, ranging from towns and villages to the whole country. For example, Huaxi Village, the first village in the world, owns Huaxi Group Corporation. In 2005, the income was 30.79 billion yuan, and the annual per capita income was 65,000 yuan. Huaxi village, which has strong wealth creation ability, can be regarded as a diamond. Silicon Valley in the United States, the center of the world IT industry, leads the world in excellent network service production and research and development capabilities, and Silicon Valley can be regarded as a diamond; When it comes to digital cameras, people think of Japan. Sony, Panasonic and other electronics giants coming out of this country dominate the world in this field, and Japan in the electronics industry can be regarded as a diamond.
Second, correctly understand the interaction between elements.
The formation of diamonds requires the formation, interaction and cooperation of four elements.
In the initial stage of formation, it is possible that all four elements are playing a role, or that one or more of them develop rapidly, and then drive other elements to form, and finally further cooperate and interact with each other to form diamonds.