Response Comments - After posting your initial response to the question, begin making comments to your peers

Subject:ManagementPrice: Bought3

Share With

Response Comments - After posting your initial response to the question, begin making comments to your peers. A minimum of two comments made on two different days must be posted in the discussion for a passing grade.  The comments must be early enough before the end of the week to allow for replies.

 

Gus Brown (Student 1)

 

The company that is going to be analyzed is Microsoft. This company is Microsoft; an American multinational technology corporation that produces computer software, consumer electronics, personal computers, and related services. They first started out with computers in the 70s and 80s, then in the late 1990s, they started shifting towards more software products. Microsoft does a ton of sales in the international market selling software to companies.

            Michael Porter’s Diamond Model is a diamond-shaped framework that focuses on explaining why certain industries within a particular nation are competitive internationally, where some other companies might not be (Bruin, 2020). In the article about the Diamond Model, we can see that the competitiveness of the business is compared with the performance of other businesses. Porter’s model can be applied to any kind of business when this method was applied to Microsoft and its international market. International business can be done only on the growth of the national home base and growth can help as an advantage for the global business.

            The first component of the diamond model is factor conditions; it is the natural, capital, and human resources available in the international market. Microsoft has been doing business in the Asian market for nearly three decades. The Asian market has created excellent infrastructure and a solid scientific knowledge base, which is created conditions. Especially since a country like Japan is a huge advocate for the expansion of technology, it allows Microsoft to use that knowledge they have to build stronger products.

            Next are the demand conditions for Microsoft. This is how much a market needs the product the company is selling. While a larger market can present more challenges, it also creates opportunities for businesses within that industry to grow and flourish. The constant demand from local customers will push companies to grow. Recent research by IDC, shows that Microsoft’s most recent data center expansions in Malaysia, Indonesia, and Taiwan alone, in partnership with its ecosystem, are set to generate more than $21 billion in new revenues and will create 100,000 new jobs in the next four years (MSA, 2022).

            Microsoft has a lot of help progressing in the Asian market with Related and Supporting Industries. The sharing of knowledge and information between suppliers and manufacturers gives companies within an industry early access to new products. Microsoft partnered with NEC, a multinational information technology and electronic company out of Japan, the companies will work together to help improve digital services for the public sector and enterprise customers through workplace and workforce transformation.

            Lastly, Firm Strategy, Structure, and Rivalry is a component that isn’t as straightforward for Microsoft. Competition is key to allowing companies to keep innovating to stay on top. Google, Microsoft’s biggest rival in Asia has been supplying software to businesses and governments. This caused Microsoft to innovate and created a strategic relationship with Zebra Technologies Corp (MSN, 2022), a world leader in innovative digital solutions, including software and hardware such as rugged Android mobile computers for the Asian frontline workforce.

 

Referencess

Analysis of porter's diamond model of national advantage. MBA Knowledge Base. (2020, July 16). Retrieved July 5, 2022, from https://www.mbaknol.com/international-business/analysis-of-porters-diamond-model-of-national-advantage/#:~:text=Michael%20Porter%20introduced%20the%20diamond%20model%20of%20national,of%20businesses%20within%20the%20countries%20are%20more%20competitive.

Bruin, L. de. (2020, January 19). Porter's diamond model explained with examples: B2U. Business. Retrieved July 5, 2022, from https://www.business-to-you.com/porter-diamond-model/

Dyer, Godfrey, Jensen , & Bryce. (2019). Strategic Management . John Wiley & Sons.

Microsoft Stories Asia. (2022, June 28). New Microsoft Data reveals the State of Frontline Workers in Asia. Microsoft Stories Asia. Retrieved July 5, 2022, from https://news.microsoft.com/apac/2022/01/13/new-microsoft-data-reveals-the-state-of-frontline-workers-in-asia/

Microsoft Stories Asia. (2022, June 30). Microsoft Cloud Will Accelerate Asia's post-pandemic economic growth, creating tens of thousands of jobs and billions of dollars in revenue in the next four years. Microsoft Stories Asia. Retrieved July 5, 2022, from https://news.microsoft.com/apac/2021/04/21/microsoft-cloud-will-accelerate-asias-post-pandemic-economic-growth-creating-tens-of-thousands-of-jobs-and-billions-of-dollars-in-revenue-in-the-next-four-years/

 

 

 

 

Lori Hildebrandt (Student 2)

· After reading the article by Michael Porter on his Diamond of National Advantage (in addition to Dyer et al, (2020), Chapt 9, p.164, Figure 9.5), apply Porter’s Diamond to an organization and an international geographic market where the organization currently does business.

· Briefly apply the four factors of the diamond to the organization and a specific market location (country or region). You may need to do research on the company and its operations in that international market.

· How important do you feel the “clustering” of related and supporting industries might be to the company you have selected?

Porter’s Diamond Model is a tool that analyzes strategy and competitive advantage in global markets.  It is also referred to as the Porter Diamond Theory of National Advantage. 

The determinants that Porter distinguishes are:

· Factor Conditions

· Demand Conditions

· Related and Supporting Industries

· Firm Strategy, Structure and Rivalry

Louis Vuitton is in over 50 counties with 4,910 stores and in 2020 their brand value was over $51m.  The company is based in France and France is known for their fashion and luxury products.  This reputation has been tied to France for hundreds of years.  It is not accidental that France has a dominant cluster of luxury brands.  Louis Vuitton was born in France giving him the perfect Factor Conditions being a native of France who has a powerful reputation for luxury brands.  Demand Conditions were met because of the French’s notable sense of fashion which caused the company to strive to meet the demands for high fashion style.  This allowed the company to gain and keep a competitive advantage.  France is also classified in the Related and Supporting Industry for luxury goods.  Companies push one another to stay atop the luxury industry and to improve and innovate so they all gain.  The luxury goods industry in France is extremely competitive so the determinant Firm Strategy, Structure, and Rivalry pushed Louis Vuitton to merge with other companies such as Hennessy, Tiffany & Co. and more than 70 others.  This strategy grew their business through acquisitions. 

The use of clusters for like product groups in where this is a considerable competitive market.  Working in a cluster is highly advantageous because companies within these clusters can energize one another to increase productivity, promote innovation to achieve better results.