The four major traits of the diamond system The answer is tied to the four major traits of a country. These traits are independent and systematically combined into a national advantage diamond system. In various fields that form this diamond system, countries can build their industries and operate them. These traits are: 1. The status of the country's production factors, such as skilled workers or infrastructure, is an essential competitive element in the industry. 2. Requirement conditions The essence of the local market for products or services. 3. Supporting industries and related industries whether the country has the support industry and related industries of this industry, and whether these industries are international competitive. . Domestic conditions for the dominance of corporate strategy, structure and competition state, and the domestic competition in the country. This key elements created the national environment. Enterprises were born and learned how to compete. Each point of the diamond system, and the system itself, will affect the basic conditions of the success of the company's success in international competition. How to operate the diamond system: Italian tile industry In 1987, Italian tile manufacturing industry output value of US $ 10 billion in annual output, which is a veritable tile production and export kingdom. Italian tile manufacturers are mainly concentrated in the town of Sassuolo in Emilia-RO-MAGNA. Local -produced tiles account for 30 % of global output, 60 % of the international market, and bring $ 1.4 billion in trade surplus to Italy. The tile production in the town of Sasauo originated from the manufacturing industry of local pottery and tiles in the 13th century. Until the end of World War II, local manufacturers engaged in tile manufacturing still were still in a few, and they were limited to the local market. It after the war in Italy, the demand for tiles has grown dramatic growth. Because the reconstruction plan requires a large amount of building materials, the local needs of Italy's local tiles are particularly strong, because the tiles meet the needs of the climate, local taste and architectural technology. Compared with other parts of Italy, the economic conditions of Sasauzo town well, locals began to establish tile factories with small capital plus necessary organizational technologies. In 1955, there were 14 local tile manufacturers, and by 1962, the number increased to 102. The at the beginning of the development of the Italian tile industry, clay and production technology depended on foreign countries. In the 1950s, the material of the tiles was white kaolin (). Susolo did not have such materials in the local area and must be imported by Britain. The kiln is imported from Germany, the United States and France, and the brick board is imported from Germany. Even the simplest glazed machine relies on imports. The is almost adjacent to the equipment manufacturer and tile manufacturers, and there is also an abnormally close relationship between them. In the mid -1980s, there were about 200 tile machinery manufacturers in Italy, and 60 % brought together in the Sassolo area. For local business opportunities, they are competing with each other fiercely. The prices of purchasing equipment in tile manufacturers are usually lower than foreign competitors and can get the most advanced equipment early. As the tile industry concentrates in the Susolo area, a cluster group is formed. Professional groups such as engineers, production technicians, maintenance workers, service technicians, and designers of this industry are also growing. This geographical concentration encourages the formation of other support and related industries such as molds, glaze, packaging materials, and transportation services. Small specialized consultants have also emerged as the service, providing tile operators' services such as factory design, material management, finance, advertising and marketing. In the 1960s, Italy may be the country with the highest per capita tiles in the world. The Italian tile market is also the world's most exquisite and high -end market. Consumers in Italy will take the lead in using new design and new performance products, while tile manufacturers continue to innovate to improve production methods and launch new styles to form a virtuous cycle of two -way interaction. The unique and exquisite domestic demand traits have also extended to the retail field. In the 1960s, Tile Stores began to appear in Italy; in 1985, the number of such specialty stores was nearly 7,600, and nearly 80 % of domestic sales were controlled, which was much higher than other countries. In 1976, PIEMME preferred tile products designed by the famous designer, which aims to increase sales channels and establish a brand image in the minds of consumers. These innovations are powerful in the Italian design service industry, because Italy's design and service industry is one of the best in the world, with an annual export value of more than 100 billion US dollars. If international transit It Italian tile market entered saturation in 1970, and the stagnant domestic market forced manufacturers to expand overseas markets more and more diligently. In the export of tiles, the relevant and supporting industries also help the upper arms. Tile manufacturers usually publish advertisements in professional architectural magazines at home and abroad, and Italian interior design and decoration magazines originally had a large number of overseas architects, designers and consumer reservations. The advantages of magazines are connected to the image of Italian tiles. In addition, Italian marble, building materials, bathroom equipment, lighting, indoor supplies and other products are all world -class. The image of these industries helps the tile industry export. In 1980, the Italian Tile Industry Association established a product promotion base in the United States; the German and French promotion bases were established in 4 and 7 years, respectively. Its commercial exhibitions organized from Bolona, Italy to Miami in the United States, and published a large number of exquisite advertising promotions Italian tiles. From 1987 to 1989, the organization's funding for the US market promotion was about 8 million US dollars.
Introduction to Potter Diamond Theory ModelnProduction factors -including human resources, natural resources, knowledge resources, capital resources, infrastructure.nDemand conditions -mainly because of the needs of the country's market.nThe performance of related industries and supporting industries -whether these industries and related upstream industries have international competitiveness.nThe performance of the company's strategy, structure, and competitors.nPorter believes that these four elements have two -way effect and form a diamond system.nThere are two major variables outside the four major elements: government and opportunities. Opportunities are irresistible, and the influence of government policies cannot be ignored.nAbout production factorsnPotter divides production factors into primary production factors and advanced production factors. Primary production factors refer to natural resources, climate, geographical location, non -technical workers, funds, etc. , Human manpower, research institutions, etc. Porter believes that the importance of primary production factors is getting lower and lower, because the demand for it is decreasing, and multinational companies can obtain it through global market networks (of course, primary production factors are still very important for agriculture and natural products -based industries. important). Advanced production factors are important to obtain competitive advantages. Advanced production factors need to invest a lot and continuous investment in manpower and capital first, and as research institutes and education plans for training high -level production factors, they need senior talents in themselves. It is difficult to obtain high -level production factors from the outside and must invest in creation by themselves.nFrom another perspective, production factors are divided into general production and professional production factors. Senior professional talents, professional research institutions, dedicated soft, hardware facilities, etc. are attributed to professional production factors. The more delicate industries, the more professional production is needed, and companies with professional production factors will also produce more exquisite competitive advantages.nIf a country wants to establish a powerful and lasting advantage of production factors through production factors, it is necessary to develop advanced production factors and professional production factors. The acquisition of these two types of production factors also determines the quality of competitive advantages. If the state builds competitive advantages on the basis of primary and general production factors, it is usually unstable.nPotter also pointed out that in actual competition, rich resources or cheap cost factors often cause unparalleled resource allocation. On the other hand, adverse factors such as manual shortage, insufficient resources, and poor geographical climatic conditions will form a stimulus. The pressure of industrial innovation has promoted the lasting upgrade of the competitive advantage of enterprises. The competitive advantage of a country can actually be formed from unfavorable production factors.nIt is speculated that countries with rich resources and cheap labor should develop industries with dense labor, but this type of industry will not make great breakthroughs in greatly increasing national income. At the same time, it is impossible to gain global competitiveness just relying on primary production factors.nDomestic demand marketnThe domestic demand market is the driving force for industrial development. The difference between the domestic market and the international market is that companies can discover customer needs in the domestic market in a timely manner, which is uneven from foreign competitors. Therefore, Potter believes that global competition does not reduce the importance of the domestic market.nPotter pointed out that the essence of local customers is very important, especially for internal and critical customers. If the local customers' requirements for products and services or the degree of picky levels are one of the best internationally, it will inspire the competitive advantage of the country in the country. Essence For example, Japanese consumers' picky in car consumption is famous for worldwide. The strict environmental protection requirements of Europe have also led many European companies to the world's first -class car environmental protection and energy -saving performance. The consumption style of Americans was used to destroy the automotive industry, which caused the American automotive industry to have a long time in the face of the oil crisis.nAnother important aspect is the expected needs. If local customers need to lead in other countries, this can also become a advantage of local enterprises, because advanced products need to be supported by avant -garde needs. There is no speed limit on the German highway, and the local automobile industry is very hard to meet the driver's enthusiastic pursuit of high -speed, while the speed of more than 200 kilometers or even 300 kilometers per hour has no practical significance in other countries. Sometimes national policies affect expected demand, such as car's environmental protection and safety regulations, energy conservation regulations, taxes and fees policies, etc.nRelated and supporting industriesnFor the formation of national competitive advantages, related and supportive industries and advantageous industries are a relationship of rest and common. Potter's research reminds people to pay attention to the phenomenon of industrial clusters, that is, an advantageous industry does not exist alone. It must have risen together with relevant domestic strong industries. Taking the German printing industry as an example, the German printing machine is dominant to the world, and it is inseparable from the strength of German papermaking, ink, mode, and mechanical manufacturing. The competitive advantages of the United States, Germany, and Japan's automobile industry are also inseparable from the support of steel, machinery, chemicals, components and other industries. Some economists pointed out that developing countries often use centralized resource allocation to give priority to the development of a certain industry policy. As a result of the deepening of the solitary army is to sacrifice other industries, and the favorite industries cannot show a stand out.nThis country's suppliers are an indispensable part of industrial innovation and upgrading. This is also its biggest advantage, because if the industry must form a competitive advantage, it cannot lack world -class suppliers in the world.nIt must not lack close cooperative relationships in the upstream and downstream industries. On the other hand, competitive domestic industries usually drive the competitiveness of related industries.nPotter pointed out that even if the downstream industry does not compete internationally, as long as the upstream suppliers have international competitive advantages, the impact on the entire industry is still positive.nCorporate strategy, structure and interbank competitionnPotter pointed out that it is important to promote the motivation to promote international competition. This power may come from the tension of international demand, or the pressure of local competitors or the thrust of the market. The biggest related factor of creating the advantages of continuous industrial competition is strong competitors in the domestic market. Porter believes that this is contradictory with many traditional concepts. For example, it is generally believed that domestic competition is too fierce, resources will be excessively consumed, which hinders the establishment of the scale economy; The scale economy and foreign companies compete and promote the efficiency of internal operations; others believe that international industries do not require opponents in the domestic market. Porter pointed out that in the ten countries he studied, strong domestic competitors generally exist in international competitive industries. In international competition, successful industries must first go through the domestic market to force them to improve and innovate, while overseas markets are a competitive extension. Under the protection and subsidies of the government, super -star companies that have no competitors in China usually do not have international competitiveness.nOpportunities can be encountered and indispensable, and opportunities can affect the changes in the four major elements. Potter pointed out that for the development of enterprises, there are roughly several possible situations for the formation of opportunities: invention and creation of basic technology; faults in traditional technologies; external causes have caused sudden increase in production costs (such as the petroleum crisis); major changes in financial markets or exchange rate changes ; Market demand dramatically; major government decisions; war. The opportunity is actually two -way. It often gains advantages of new competitors while making the original competitors lose its advantages. Only manufacturers who can meet new needs can have development opportunities. Government Potter pointed out that it is enterprises engaged in industrial competition, not government, and the creation of competitive advantages must eventually be reflected in enterprises. Even if they have the best civil servants, they cannot decide which industry should be developed, and how to achieve the most appropriate competitive advantage. What the government can do is to provide the resources required by the enterprise and create an environment for industrial development.nOnly when the government plays its own role can the government become the power to expand the diamond system. The government can create new opportunities and pressures. The government should directly invest in the field of enterprises that cannot act, that is, external costs, such as developing infrastructure and open capital channels for opening capital, open capital channels , Cultivate information integration capabilities, etc.nFrom the perspective of the government's influence on the four major elements, the impact of the government on demand is mainly government procurement, but government procurement must have strict standards and play a picky customer (in the United States, car safety regulations start from government procurement); procurement Programs are conducive to competition and innovation. In terms of forming an industrial cluster, the government can not be born out of nothing, but it can be strengthened. The most important role of the government in the development of the industry is to ensure that the domestic market is in a lively competitive state, formulate competition norms, and avoid the state of Torlas.nPorter believes that protection will delay the formation of industrial competitive advantages and keep enterprises in a state of lack of competition.
Diamonds are polished diamonds, also known as diamonds, usually refer to gem -grade diamonds, especially to the gem -class diamond. Diamonds are rough diamonds, while diamond rough is colorless eight -faced crystals. But because diamond mines are affected by the geology of the area, different colors and forms appear. For example, Russia AlROSA Erosa has discovered a diamond rough named after a later period, and another diamond moves freely.
The four major traits of the diamond system
The answer is tied to the four major traits of a country. These traits are independent and systematically combined into a national advantage diamond system. In various fields that form this diamond system, countries can build their industries and operate them. These traits are:
1. The status of the country's production factors, such as skilled workers or infrastructure, is an essential competitive element in the industry.
2. Requirement conditions The essence of the local market for products or services.
3. Supporting industries and related industries whether the country has the support industry and related industries of this industry, and whether these industries are international competitive.
. Domestic conditions for the dominance of corporate strategy, structure and competition state, and the domestic competition in the country.
This key elements created the national environment. Enterprises were born and learned how to compete. Each point of the diamond system, and the system itself, will affect the basic conditions of the success of the company's success in international competition.
How to operate the diamond system: Italian tile industry
In 1987, Italian tile manufacturing industry output value of US $ 10 billion in annual output, which is a veritable tile production and export kingdom. Italian tile manufacturers are mainly concentrated in the town of Sassuolo in Emilia-RO-MAGNA. Local -produced tiles account for 30 % of global output, 60 % of the international market, and bring $ 1.4 billion in trade surplus to Italy.
The tile production in the town of Sasauo originated from the manufacturing industry of local pottery and tiles in the 13th century. Until the end of World War II, local manufacturers engaged in tile manufacturing still were still in a few, and they were limited to the local market.
It after the war in Italy, the demand for tiles has grown dramatic growth. Because the reconstruction plan requires a large amount of building materials, the local needs of Italy's local tiles are particularly strong, because the tiles meet the needs of the climate, local taste and architectural technology. Compared with other parts of Italy, the economic conditions of Sasauzo town well, locals began to establish tile factories with small capital plus necessary organizational technologies. In 1955, there were 14 local tile manufacturers, and by 1962, the number increased to 102.
The at the beginning of the development of the Italian tile industry, clay and production technology depended on foreign countries. In the 1950s, the material of the tiles was white kaolin (). Susolo did not have such materials in the local area and must be imported by Britain. The kiln is imported from Germany, the United States and France, and the brick board is imported from Germany. Even the simplest glazed machine relies on imports.
The is almost adjacent to the equipment manufacturer and tile manufacturers, and there is also an abnormally close relationship between them. In the mid -1980s, there were about 200 tile machinery manufacturers in Italy, and 60 % brought together in the Sassolo area. For local business opportunities, they are competing with each other fiercely. The prices of purchasing equipment in tile manufacturers are usually lower than foreign competitors and can get the most advanced equipment early.
As the tile industry concentrates in the Susolo area, a cluster group is formed. Professional groups such as engineers, production technicians, maintenance workers, service technicians, and designers of this industry are also growing. This geographical concentration encourages the formation of other support and related industries such as molds, glaze, packaging materials, and transportation services. Small specialized consultants have also emerged as the service, providing tile operators' services such as factory design, material management, finance, advertising and marketing.
In the 1960s, Italy may be the country with the highest per capita tiles in the world. The Italian tile market is also the world's most exquisite and high -end market. Consumers in Italy will take the lead in using new design and new performance products, while tile manufacturers continue to innovate to improve production methods and launch new styles to form a virtuous cycle of two -way interaction.
The unique and exquisite domestic demand traits have also extended to the retail field. In the 1960s, Tile Stores began to appear in Italy; in 1985, the number of such specialty stores was nearly 7,600, and nearly 80 % of domestic sales were controlled, which was much higher than other countries. In 1976, PIEMME preferred tile products designed by the famous designer, which aims to increase sales channels and establish a brand image in the minds of consumers. These innovations are powerful in the Italian design service industry, because Italy's design and service industry is one of the best in the world, with an annual export value of more than 100 billion US dollars.
If international transit
It Italian tile market entered saturation in 1970, and the stagnant domestic market forced manufacturers to expand overseas markets more and more diligently. In the export of tiles, the relevant and supporting industries also help the upper arms. Tile manufacturers usually publish advertisements in professional architectural magazines at home and abroad, and Italian interior design and decoration magazines originally had a large number of overseas architects, designers and consumer reservations. The advantages of magazines are connected to the image of Italian tiles. In addition, Italian marble, building materials, bathroom equipment, lighting, indoor supplies and other products are all world -class. The image of these industries helps the tile industry export.
In 1980, the Italian Tile Industry Association established a product promotion base in the United States; the German and French promotion bases were established in 4 and 7 years, respectively. Its commercial exhibitions organized from Bolona, Italy to Miami in the United States, and published a large number of exquisite advertising promotions Italian tiles. From 1987 to 1989, the organization's funding for the US market promotion was about 8 million US dollars.
Introduction to Potter Diamond Theory ModelnProduction factors -including human resources, natural resources, knowledge resources, capital resources, infrastructure.nDemand conditions -mainly because of the needs of the country's market.nThe performance of related industries and supporting industries -whether these industries and related upstream industries have international competitiveness.nThe performance of the company's strategy, structure, and competitors.nPorter believes that these four elements have two -way effect and form a diamond system.nThere are two major variables outside the four major elements: government and opportunities. Opportunities are irresistible, and the influence of government policies cannot be ignored.nAbout production factorsnPotter divides production factors into primary production factors and advanced production factors. Primary production factors refer to natural resources, climate, geographical location, non -technical workers, funds, etc. , Human manpower, research institutions, etc. Porter believes that the importance of primary production factors is getting lower and lower, because the demand for it is decreasing, and multinational companies can obtain it through global market networks (of course, primary production factors are still very important for agriculture and natural products -based industries. important). Advanced production factors are important to obtain competitive advantages. Advanced production factors need to invest a lot and continuous investment in manpower and capital first, and as research institutes and education plans for training high -level production factors, they need senior talents in themselves. It is difficult to obtain high -level production factors from the outside and must invest in creation by themselves.nFrom another perspective, production factors are divided into general production and professional production factors. Senior professional talents, professional research institutions, dedicated soft, hardware facilities, etc. are attributed to professional production factors. The more delicate industries, the more professional production is needed, and companies with professional production factors will also produce more exquisite competitive advantages.nIf a country wants to establish a powerful and lasting advantage of production factors through production factors, it is necessary to develop advanced production factors and professional production factors. The acquisition of these two types of production factors also determines the quality of competitive advantages. If the state builds competitive advantages on the basis of primary and general production factors, it is usually unstable.nPotter also pointed out that in actual competition, rich resources or cheap cost factors often cause unparalleled resource allocation. On the other hand, adverse factors such as manual shortage, insufficient resources, and poor geographical climatic conditions will form a stimulus. The pressure of industrial innovation has promoted the lasting upgrade of the competitive advantage of enterprises. The competitive advantage of a country can actually be formed from unfavorable production factors.nIt is speculated that countries with rich resources and cheap labor should develop industries with dense labor, but this type of industry will not make great breakthroughs in greatly increasing national income. At the same time, it is impossible to gain global competitiveness just relying on primary production factors.nDomestic demand marketnThe domestic demand market is the driving force for industrial development. The difference between the domestic market and the international market is that companies can discover customer needs in the domestic market in a timely manner, which is uneven from foreign competitors. Therefore, Potter believes that global competition does not reduce the importance of the domestic market.nPotter pointed out that the essence of local customers is very important, especially for internal and critical customers. If the local customers' requirements for products and services or the degree of picky levels are one of the best internationally, it will inspire the competitive advantage of the country in the country. Essence For example, Japanese consumers' picky in car consumption is famous for worldwide. The strict environmental protection requirements of Europe have also led many European companies to the world's first -class car environmental protection and energy -saving performance. The consumption style of Americans was used to destroy the automotive industry, which caused the American automotive industry to have a long time in the face of the oil crisis.nAnother important aspect is the expected needs. If local customers need to lead in other countries, this can also become a advantage of local enterprises, because advanced products need to be supported by avant -garde needs. There is no speed limit on the German highway, and the local automobile industry is very hard to meet the driver's enthusiastic pursuit of high -speed, while the speed of more than 200 kilometers or even 300 kilometers per hour has no practical significance in other countries. Sometimes national policies affect expected demand, such as car's environmental protection and safety regulations, energy conservation regulations, taxes and fees policies, etc.nRelated and supporting industriesnFor the formation of national competitive advantages, related and supportive industries and advantageous industries are a relationship of rest and common. Potter's research reminds people to pay attention to the phenomenon of industrial clusters, that is, an advantageous industry does not exist alone. It must have risen together with relevant domestic strong industries. Taking the German printing industry as an example, the German printing machine is dominant to the world, and it is inseparable from the strength of German papermaking, ink, mode, and mechanical manufacturing. The competitive advantages of the United States, Germany, and Japan's automobile industry are also inseparable from the support of steel, machinery, chemicals, components and other industries. Some economists pointed out that developing countries often use centralized resource allocation to give priority to the development of a certain industry policy. As a result of the deepening of the solitary army is to sacrifice other industries, and the favorite industries cannot show a stand out.nThis country's suppliers are an indispensable part of industrial innovation and upgrading. This is also its biggest advantage, because if the industry must form a competitive advantage, it cannot lack world -class suppliers in the world.nIt must not lack close cooperative relationships in the upstream and downstream industries. On the other hand, competitive domestic industries usually drive the competitiveness of related industries.nPotter pointed out that even if the downstream industry does not compete internationally, as long as the upstream suppliers have international competitive advantages, the impact on the entire industry is still positive.nCorporate strategy, structure and interbank competitionnPotter pointed out that it is important to promote the motivation to promote international competition. This power may come from the tension of international demand, or the pressure of local competitors or the thrust of the market. The biggest related factor of creating the advantages of continuous industrial competition is strong competitors in the domestic market. Porter believes that this is contradictory with many traditional concepts. For example, it is generally believed that domestic competition is too fierce, resources will be excessively consumed, which hinders the establishment of the scale economy; The scale economy and foreign companies compete and promote the efficiency of internal operations; others believe that international industries do not require opponents in the domestic market. Porter pointed out that in the ten countries he studied, strong domestic competitors generally exist in international competitive industries. In international competition, successful industries must first go through the domestic market to force them to improve and innovate, while overseas markets are a competitive extension. Under the protection and subsidies of the government, super -star companies that have no competitors in China usually do not have international competitiveness.nOpportunities can be encountered and indispensable, and opportunities can affect the changes in the four major elements. Potter pointed out that for the development of enterprises, there are roughly several possible situations for the formation of opportunities: invention and creation of basic technology; faults in traditional technologies; external causes have caused sudden increase in production costs (such as the petroleum crisis); major changes in financial markets or exchange rate changes ; Market demand dramatically; major government decisions; war. The opportunity is actually two -way. It often gains advantages of new competitors while making the original competitors lose its advantages. Only manufacturers who can meet new needs can have development opportunities. Government Potter pointed out that it is enterprises engaged in industrial competition, not government, and the creation of competitive advantages must eventually be reflected in enterprises. Even if they have the best civil servants, they cannot decide which industry should be developed, and how to achieve the most appropriate competitive advantage. What the government can do is to provide the resources required by the enterprise and create an environment for industrial development.nOnly when the government plays its own role can the government become the power to expand the diamond system. The government can create new opportunities and pressures. The government should directly invest in the field of enterprises that cannot act, that is, external costs, such as developing infrastructure and open capital channels for opening capital, open capital channels , Cultivate information integration capabilities, etc.nFrom the perspective of the government's influence on the four major elements, the impact of the government on demand is mainly government procurement, but government procurement must have strict standards and play a picky customer (in the United States, car safety regulations start from government procurement); procurement Programs are conducive to competition and innovation. In terms of forming an industrial cluster, the government can not be born out of nothing, but it can be strengthened. The most important role of the government in the development of the industry is to ensure that the domestic market is in a lively competitive state, formulate competition norms, and avoid the state of Torlas.nPorter believes that protection will delay the formation of industrial competitive advantages and keep enterprises in a state of lack of competition.
Diamonds are polished diamonds, also known as diamonds, usually refer to gem -grade diamonds, especially to the gem -class diamond. Diamonds are rough diamonds, while diamond rough is colorless eight -faced crystals. But because diamond mines are affected by the geology of the area, different colors and forms appear. For example, Russia AlROSA Erosa has discovered a diamond rough named after a later period, and another diamond moves freely.