Porter’s Diamond (Continued)
- Relating and Supporting Industries
- Internationally competitive related industries will lead to a spill over effect.
- Example of the silicon valley in California
- Firm Strategy Structure and Rivalry
- Company creation
- Company organization and management
- Domestic rivalry
- Example, a company that faces stiff domestic competition is likely to be a stronger firm.
- Finally, Government Policy and Chance
- anti-trust laws, product standards, impact on availability of skilled workers.
- The four factors + Government policy + chance make a complimentary system that determines national competitiveness.