Porter's Diamond Research Articles

Gillette’s Expansion to India through the Lens of Porter’s Diamond Model and Dunning’s Eclectic Paradigm

In 2005, Procter & Gamble (P&G) acquired Gillette for $57 billion, marking a significant milestone in consumer goods history. This analysis explores Gillette's strategic expansion into India, leveraging Porter's Diamond Model and Dunning's Eclectic Paradigm to evaluate its success and challenges. The study delves into the skilled workforce, local manufacturing, and innovative marketing strategies that facilitated Gillette's penetration into India's diverse and rapidly urbanizing market. Through local R&D and collaborations with e- commerce platforms, Gillette tailored its products to Indian consumer preferences, achieving substantial market share. The frameworks reveal how Gillette's global efficiency and local responsiveness enabled it to thrive amidst intense competition. The paper concludes with recommendations for sustaining this success through continuous innovation, vigilant market monitoring, and eco-friendly practices, while suggesting the applicability of these insights to other emerging markets.

Developing an evaluation model for urban tourism competitiveness: combining community construction and community service to foster sustainable development of cities.

This study aims to develop a comprehensive evaluation model for urban tourism competitiveness in China. Given China's transition into a mature tourist destination, there is a pressing need for a framework that can assess the effectiveness of its urban tourism strategies. The model presented in this study is designed to provide a holistic understanding of the factors influencing urban tourism competitiveness in the Chinese context. The methodology employed in this study combines both qualitative and quantitative approaches. A modified version of Porter's Diamond Model serves as the primary framework, augmented by the IMD World Competitiveness Center: International Institute for Management Development (IMD) framework to incorporate social governance and environmental dimensions. To derive comprehensive scores for sustainable development, a linear weighted evaluation method was used, incorporating the coefficient of variation entropy weight method. This approach allows for a quantitative assessment of urban tourism competitiveness from 2008 to 2019. The key findings of the study reveal significant challenges within the current urban tourism landscape in China. These challenges include homogeneous competition, a lack of strategic management, and insufficient service quality. Furthermore, the study identifies the need for greater emphasis on sustainable tourism development, balancing economic benefits with the preservation of cultural and natural assets. Based on the findings, the study proposes several solutions to address the identified challenges. These solutions include creating boutique inland tourism routes, developing unique urban tourism brands, and enhancing regional cooperation and management practices. Additionally, the study emphasizes the importance of integrating community development and services into the evaluation model to foster sustainable tourism development. The proposed solutions offer actionable insights for policymakers and planners seeking to improve the competitiveness and sustainability of urban tourism in China.

Participation of Vietnamese enterprises in the global footwear supply chain

This study examines the factors influencing the involvement of Vietnamese enterprises in the global footwear supply chain. It uses the Porter Diamond Model to evaluate the competitive advantages of Vietnamese footwear enterprises based on four key attributes: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. The research combines various methods, including a review of previous studies, analysis of secondary data, and in-depth interviews with twelve industry experts. The findings offer insights and managerial implications for enhancing supply chain collaboration among Vietnamese footwear companies. It suggests that Vietnamese businesses and policymakers should actively engage in the global supply chain to gain higher competitive advantages and advance to more value-added activities. The study discusses practical and theoretical implications.

Business Secret behind the Tagline Business Resilience behind the Tagline: Open 24 Hours / 7 Days, Apocalypse Opened for Half a Day

This research investigates the marketing strategies used by shops in Madura with a focus on the tagline "Open 24 Hours / 7 Days; Stop Opening Half A Day". Through a SWOT analysis approach and the Porter's Diamond framework, this research aims to understand how the tagline supports the competitiveness and operational success of stores in a unique local context. Research methods include in-depth interviews with shop owners, customer surveys, and operational data analysis. This research model uses a simple design with Triangulation Theory. The data collection techniques used are observation, interviews and documentation. The data analysis technique used is the Manual Data Analysis Procedure (MDAP). The research results show that the tagline not only acts as a creative marketing tool, but also reflects a commitment to high customer service and operational continuity in the face of changing market conditions. A SWOT analysis identifies strengths such as responsive customer service and weaknesses such as reliance on local resources, while a Porter's Diamond analysis highlights related factors and industry conditions that support the stores' operational strategies. Suggestions for future research include data collection, comparative studies with other industrial contexts, and collaboration with local governments to support demand and development of local shops in Madura.

A Comparative Study on the International Competitiveness of Digital Trade between China and Malaysia: A Diamond Model Approach

This study examines the international competitiveness of digital trade between China and Malaysia using Michael Porter's Diamond Model. The Diamond Model, which focuses on four key determinants—factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry—serves as the analytical framework for this comparative analysis. In assessing factor conditions, the study evaluates the digital infrastructure, human capital, and technological innovation capabilities in both countries. Demand conditions are analyzed through consumer behaviors, market size, and the growth rate of the digital economy. The presence and strength of related and supporting industries, such as e-commerce platforms, fintech, and ICT services, are considered to understand their role in enhancing digital trade competitiveness. The study also examines firm strategies, government policies, and the competitive environment that shape the digital trade landscape in China and Malaysia. Findings suggest that China demonstrates a higher level of competitiveness in digital trade, driven by its advanced digital infrastructure, robust innovation ecosystem, and large, tech-savvy consumer base. Malaysia, while showing significant progress, particularly in regulatory frameworks and digital adoption, faces challenges related to scale and innovation intensity. The study highlights the need for Malaysia to invest in digital skills development and innovation to enhance its competitiveness. The comparative insights derived from this study aim to inform policymakers and business leaders on strategic initiatives to bolster digital trade capabilities and foster sustainable economic growth in the digital era.

Germany's Economic Integration: Automotive Industry and FDI Analysis

In this paper, Germany's significant role was explored in regional integration and its competitive edge in the automotive manufacturing industry, underlining the country's strategic involvement in the European Union and World Trade Organisation. Germany’s participation in the EU has been instrumental in promoting economic integration across Europe, benefiting from free trade agreements and contributing to the EU’s status as a major trade bloc. The paper also delves into the reasons behind Germany's prowess in the automotive sector, using Porter's Diamond Model to analyze factors like advanced technology, skilled workforce, strict consumer standards, and supportive industries, all contributing to the country's global competitiveness in this domain. Furthermore, the study investigates the dynamics of Foreign Direct Investment (FDI) in Germany, identifying key attractions for foreign investors such as technological leadership, a robust market, efficient infrastructure, and favorable investment policies. However, challenges like rigorous government regulations on FDI and cultural differences pose potential hurdles for foreign investors. The conclusion emphasizes that while Germany offers substantial opportunities due to its economic strength and market potential, foreign entities must carefully navigate these challenges to successfully invest and operate in the German market.

Analisa Daya Saing Usaha Anyaman Keranjang di Kabupaten Simalungun dengan menggunakan Model Diamond Porter

This study aims to analyze the competitive advantage by using the Porter Diamond Model in the basket weaving craft business in Nagori Sirpang Dalig Raya, Kecataman Pematang Raya, Simalungun Regency. The research method used is descriptive with a qualitative approach. Data collection techniques were carried out by interview, observation and documentation. The results showed important determinants in the competitive advantage of woven basket craftsmen in accordance with porter's diamond model, consisting of factor conditions; demand conditions; company structure, strategy and competition; related industries and supporting industries; and the role of government. The formulation of appropriate generic strategies is to increase product innovation to other creative crafts, focus on opening bamboo plantations and improve labor skills to attend training and development

An Analysis on the High-Quality Development Path of Sports Tourism Industry in Shandong Province from the Perspective of Porter Rhomboid Theory

From the perspective of Porter's diamond theory, this paper analyzes the four basic elements of sports tourism in Shandong Province, namely resource elements, demand conditions, related industries and enterprise strategy, as well as the two role elements of opportunity and government, and finds that there are problems such as rich resources but unbalanced distribution of sports tourism in Shandong Province. Based on this, the author puts forward some development paths, such as increasing the mining and publicity of traditional resources, emphasizing the training of sports talents, stimulating the domestic demand of sports tourism, promoting the integration of sports tourism industry with other industries, improving laws and regulations, and strengthening the macro-guidance of the government, in order to provide certain theoretical references for the healthy, sustained and high-quality development of sports tourism industry in Shandong Province.

Competitiveness Analysis and Strategies to Improve Small and Medium Enterprises Performance

Global economic dynamics encourage industry to excel and be competitive. This research aims to identify industry characteristics, measure the level of industrial competitiveness; and then provide strategy suggestions to increase industrial competitiveness. The Porter Diamond Model is used in this research to measure the level of competitiveness of the exhaust industry, where there are four indicators of industrial competitiveness, namely factor conditions, demand conditions, company strategy and competitive structure, as well as related and supporting industries. Using qualitative methods, data collection is carried out using questionnaires. The primary data used was taken from exhaust manufacturers in Purbalingga Regency totaling 67 respondents. Strategy recommendations for increasing industrial competitiveness are determined based on urgency-performance analysis. The results of the industrial competitiveness analysis show that condition factors provide the highest contribution to the competitiveness of the exhaust industry compared to other indicators. Urgency-performance analysis shows that 5 out of 10 sub-factors driving competitiveness have underact status. The strategy to increase industrial competitiveness focuses on competitiveness sub-factors with “under act” status. These strategies include: 1) Providing better business development systems and services, 2) Developing business capacity, and 3) Expanding industrial cooperation.

Faktor Internal dan Eksternal dan Strategi Pengembangan Agribisnis Porang (Studi kasus PT. Al-Fatih Porang Indonesia)

Porang (Amorphophallus muelleri Blume) is one type of tuber plant that is starting to be widely produced in Indonesia because it has high economic value. This is because porang is widely used in the food, health, cosmetic, and manufacturing industries. Over the last decade, the export volume has increased drastically. In 2020, the export value of Indonesian porang was dominated by Thailand with a market share of 59.3%, followed by China with a total of 130 shipments, or 47.84% of total porang exports. Export share to Thailand and Australia increased significantly in 2020, with an increase of 920.1% and 526.7%, respectively. The purpose of the study was to determine the internal and external factors that affect the development of porang and obtain strategies for porang development at PT Al-Fatih Porang Indonesia. Qualitative descriptive research with Porter's Diamond Theory to determine the competitive position of porang agribusiness and SWOT analysis to determine the internal and external factors of porang agribusiness at PT Al-Fatih Porang Indonesia The results of Porter's Diamond Theory analysis showed that in PT Al-fatih Porang Indonesia's conduct of porang agribusiness development, each subsystem has not been mutually supportive and related to each other. This can be seen in the marketing and agribusiness subsystem, which is still difficult. The appropriate strategy for the development of porang at PT. Al-Fatih Porang Indonesia is to optimise the utilisation of porang.

Industrial Cluster Design using Value Chain Analysis and Diamond Porter’s Model (Case Study in Batik Trusmi Cirebon Center)

Batik Trusmi is one of Batik industry areas with 164 Batik Industry listed. Batik Trusmi, currently a center for Small Medium Enterprises (SMEs), has the high potential to grow into an industrial cluster to give its stakeholders competitive advantage. The government’s plan to develop industrial areas in West Java, includes Trusmi Batik Area as one of industrial areas that will be developed over the next 20 years. This study focus on illustrating and describing the primary and secondary activities of the Industrial cluster and stakeholders function on the system by using Value Chain Analysis and Diamond Porter’s Model, and the Industrial Cluster Component and Condition Assessment of Batik Trusmi as the result. The Diamond Porter Model describes the conditions of Internal and External Aspects of the Industrial Cluster. The industrial cluster design delivered the desired result for Batik Trusmi based on the Industrial Cluster Success Criteria. The Cirebon Industrial and Trading Agency will oversee the integrated system, which will be able to increase the competitive advantage, manage demand distribution, standardize production processes and quality, develop a tourism brand for Cirebon, and put in place a monitoring and evaluation system to gradually develop the industries under the management of industrial cluster.

Daya Saing Kopi Indonesia di Pasar Internasional dalam 3 Dekade Terakhir

Coffee is one of the most important commodities that have an important role in economic growth, especially in supporting the increase of non-oil exports in Indonesia and as a foreign exchange earner. The purpose of this article is to analyze competitiveness of Indonesian coffee in international market in the last 3 decades or during period 1989–2019. Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD), X-Model Potential Export Product and Diamond Porter’s is used to analysis competitiveness. The results of the analysis of competitiveness using the RCA method show that not all HS codes for Indonesian coffee and competing countries have a comparative advantage, Indonesian coffee has strong competitiveness for HS code 090111 but has no strong competitive power for other HS codes. The results of the EPD method show that for all HS codes Indonesian coffee and competing countries have a rising star position or have positive appeal and increased market share. The results of the X-Model Potential Export Product method show that Indonesia and competing countries have optimistic coffee market developments for HS code 090111 and have potential market developments for HS codes 090112, 090121, 090122, and 090190. From the results of Porter Diamond's analysis, the results obtained that the State of Indonesia has advantages in terms of condition factors, namely natural resources and has weaknesses in science and technology, human resources and capital resources.

How do CCIs contribute to regional innovation?

PurposeThis paper aims to understand how cultural and creative industries (CCIs) contribute to regional innovation.Design/methodology/approachThis paper explores the process of CCIs contributing to regional innovation and assesses the accumulated outcome of this process.FindingsThe authors conclude that CCIs contribute to a city’s innovation involving five dimensions (time, space, tangible, intangible and division) and four phases (people, tool, collaboration and brokerage) and the contributions are accumulated into positive innovation outcome; however, a highly developed economy is relatively unsupportive of CCIs contributing to regional innovation.Originality/valueThe main contributions are that the authors configured the detailed process of CCIs contributing to regional innovation and the authors quantitatively measured the impact of CCIs on regional innovation, using the Porter diamond model and Shannon entropy to construct the CCI index.

Nextcoa: How and Entrepreneurial University can Transform the Cocoa Industry Towards Circularity

As the economy has evolved from being driven by physical capital to knowledge and entrepreneurship, the role of the university has also evolved over time; besides its responsibility to generate technology transfer and knowledge-based startups, universities have broadened to focus on enhancing entrepreneurship capital and facilitating behavior to prosper in an entrepreneurial society (Audretsch, 2014). This article talks about Nextcoa, an academic spin-off initiative which wants to revolutionize the cocoa industry by modernizing the production and transformation of the fruit to obtain the traditional chocolate, but also using the current waste to produce new goods and services. The research question is focus on how challenging is for a Colombian entrepreneurial university to contribute to circularity, trying to produce sweeteners and biopolymers obtained from cocoa mucilage that can be used to produce and package chocolates, replacing sugar cane and plastic bags, while gives use to a residue that is currently wasted. First, it is explained the development process of new products from Nextcoa since its conception. Then, an analysis of external conditions for the cocoa sweetener and biopolymer is done, using the Porter diamond model. In third place, it is presented an internal capabilities profile of Nextcoa. Finally, the challenges for the new products to be successful in the market are synthesized, thus contributing to the circularity of the cocoa industry. As main results, it is obtained that there is an important technological limitation in obtaining the cocoa mucilage to produce the sweetener and biopolymer as well as in the little knowledge and management of biotechnological processes of those involved in the cocoa value chain. On the other hand, there is a significant demand for plastics and sweeteners for chocolate production and packaging, and a prevailing need to reduce related contamination and consumption of sugar cane for health issues. Also, being produced by an academic spin-off gives good-will to Nextcoa products but, given the bureaucracy typical of a public university in Colombia, it can mean complications for doing business. Finally, cocoa biopolymer and sweetener would have an interesting market, especially if they can be produced at a competitive cost.

MANUFACTURING INDUSTRIAL POLICY DEVELOPMENT POLICY FOR ELECTRIC PROPULSION TO IMPROVE LOCAL CONTENT OF RAILWAY INDUSTRY

To fulfill the demand for a number of railroad products, the national railroad industry, in this case PT. INKA as a train integrator industry in Indonesia still has to import components. TKDN electric train is still low. For this reason, it is time to prepare the industrial development of the national railway propulsion system components and even have a very urgent nature. Railway propulsion systems can be classified into three groups, namely: Electric propulsion systems, Diesel Electric propulsion systems and Diesel Hydraulic propulsion systems. Import dependence, of course, cannot be allowed to continue because it will weaken the competitiveness of the national railroad industry. From the results of the analysis using the "Porter Diamond Condition" method various internal and external factors were identified through the SWOT method to formulate alternative policy formulations for the development of the railroad electric propulsion system industry in Indonesia. Qualitative SWOT data are developed quantitatively through the calculation of SWOT Analysis so that the exact position of the organization is known. From the results of the analysis, and calculations using the SWOT Method, the position of the railway propulation system industry is in the Quadrant IV position, so it is best to use a Defensive Strategy. In this position the Company faces a very unfavorable situation, the company faces various threats and internal weaknesses. For this reason, it is necessary to prioritize strengthening strategies in the Matrix (W-T).

Research on the Countermeasures to Promote the Development of Education Service Trade in China

With the development of the economy, international trade globalization, and the improvement of people's living standards, coupled with the development of international trade globalization, education service trade has become an important part of the economy of various countries. Since China acceded to the WTO, the educational service trade has been effectively developed and made some achievements. It is worth mentioning that with the advent of the post-COVID-19 era, the global economy has begun to show new vitality, promoting the development of international trade in education services. Whats more, this paper uses the Porter diamond model, which facilitates the study of Chinese international education services trade competitiveness. On the basis of explaining the relevant theories of educational service trade, this paper focuses on analyzing the current situation and existing problems of educational service trade and puts forward targeted strategic choices. Finally, at the end of the thesis, there is a brief conclusion for the paper.

The competitiveness analysis of Chinese automobile industry based on Improved Porter Diamond Model

With the rapid development of Chinese automobile industry, it has become one of the pillar industries of the national economy, which plays an increasingly important role in the rapid growth of the national economy. This paper aims to investigate the competitiveness of Chinese automobile industry in different provinces and cities and to quantify the core competitiveness. Improved Porter Diamond Model is adopted to evaluate the factors that affect the Chinese automobile industry, including Industrial structure, Production factors, Demand conditions, Related and supporting industries. The data used for the analysis mainly comes from China Automobile Yearbook. Entropy Method and TOPSIS are applied to calculate the weights of each factor and evaluate the quality level of the indexes. According to the analysis, Guangdong, Jiangsu, Shanghai, Jilin, Shandong, Hubei, Zhejiang, and Beijing have higher scores and top ranking, showing strong core competitiveness, which is consistent with the reality. Tibet, Qinghai, and Ningxia ranked last because of their geographical location, which restricted the development of their automobile industry. The model can truly rank the province’s automobile core competitiveness quantitatively, which is consistent with the reality and has high practical application value. Overall, these results shed light on guiding further exploration of the evaluation and quantification of core competitiveness in different industries.

Conjectural Connection: Tourism Enterprises Competitiveness : A Macro Perspective Through the Lens of Knowledge Capital Management

This research paper explores the role of knowledge capital management in enhancing the competitiveness of tourism enterprises from a macroeconomic perspective. The study argues that the development of sound national tourism policies, integrated government market and business strategies, and public organizational and institutional structures are essential for realizing the full potential of the tourism sector and gaining a competitive advantage at the national and global levels. Moreover, the paper highlights the importance of information and knowledge capital resources as key factors in maintaining competitive advantage in the global market economy of knowledge. Using Porter's Diamond Model, the paper evaluates the management context of knowledge capital and the competitiveness of tourism companies. The study contributes to the body of knowledge on tourism, macroeconomics, enterprise competitiveness, and knowledge management research. The paper concludes by suggesting further areas of research in this field, including the development of data-driven investment policies for tourism enterprises, sophisticated methods for assessing tourism enterprise performance in different contexts, and a deeper exploration of the causal relationships between knowledge management and enterprise competitiveness. Overall, this research highlights the significance of knowledge capital management for enhancing the competitiveness of tourism enterprises and contributing to national prosperity.

Government support and cross‐border innovation: The effect of China's innovative city policy on Chinese firms' patenting in the United States

Firms innovate their new processes and products not only within their countries but also across national boundaries. This is known as cross‐border innovation, and many countries have initiated policies to support it. But how does government support influence cross‐border innovation? Through the lens of Porter's diamond model, this study conceptualizes government support as slack resources and investigates how it affects a firm's inventive activities in an uncertain, competitive global market. This study examines Chinese firms' patent filings in the United States under the enactment of the “innovative city” policy. We apply matching and generalized difference‐in‐differences techniques to this staggered quasi‐experimental setting and find that government support stimulates firms' cross‐border innovation. We further show that firms with higher research and development capacity take better advantage of government support. Finally, we show that government support leads to a rebalancing of exploratory and exploitative innovation such that a firm that has conducted more exploration will perform more exploitation and vice versa. Taken together, this study extends our understanding of slack from internal resources to government support in the context of global operations. Findings suggest that government actions that improve the ecosystem of innovation in one country strengthen firms' innovation and competitiveness overseas.

Strategi Mitigasi Risiko Usahatani Cabai Rawit: Sebuah Pendekatan Berlian Porter

The productivity of cayenne pepper in Jawai District is lower than the productivity of cayenne pepper in South Jawai District, even though both have the same harvested land area. The low productivity of cayenne pepper in Jawai District is due to the high level of risk. This study aims to determine the level of production risk and income risk of cayenne pepper farming in Jawai District and to formulate alternative strategies to reduce farming risk levels. Analysis of the level of risk in agriculture using Coefficient of Variation (CV) analysis and formulation of alternative strategies using SWOT analysis with Porter's Diamond component indicators. The results showed that the risk level of production and income from cayenne pepper farming was 0.61 and 0.75, respectively, or more than 0.5, indicating a high level of risk. An alternative strategy that can be applied by farmers to reduce the level of risk is the WO (Weaknesses-Opportunities) strategy, which includes intensifying cayenne pepper farming, providing counseling to farmers regarding proper farming knowledge and management, conducting counseling related to knowledge of the use of agricultural technology, and extensification by expanding farming land cayenne pepper farming.