The financial competitive environment of this globalized world gave Michael E. Porter the opportunity to write down strategies for how a nation could compete or tackle the issue of establishing a successful business. The primary purpose of writing his new work was to unfold the idea of a strategic competitive race among the nations of different states of the world.
He gives a plan for those nations that fail to qualify for the international standards of business and to enter into the world’s leading industrial sectors. His work includes extensive research and the collection of data on various national industries, corporations, and trading policies of developed countries of the world.
By providing the idea of grouping in the state’s industrial sector, the writer explains that developed companies can become role models for units that are not gaining much from their respective struggles to get into the space of an international financial hub. He provides different steps and a systematic plan for developing the trade and corporation. According to the writer, the present era of dependency on the exchange of money lets different states exchange their productions and rely on each other’s equipment. Moreover, he wrote about the advancements in the technological additions used in running business activities.
The solar photovoltaic industry of China has been applied under the author’s model. The business progress of the said industry has been upgraded and integrated. It became a competitive role model for other corporations. It also instigates a wave of new rivalry inside the national trading and ultimately proves to be the developed industry of China. The diamond model of the writer would be very useful for the regions that are interrelated with each other, specifically in terms of financial transactions. Hence, the new work proves to be an innovation in the global marketplace.
References:
Michael E. Porter (1990), the competitive advantage of nations, Business and Economics.
Zhen yu-youb, shuang ying-zang, Jian Zuo (2011) Renewable and Sustainable Energy Reviews, Critical Analysis of Photovoltaic industry in China, vol 15, issue 09.
