Porter’s National Diamond Analysis to South African Mobile Telecom Industry

GLOBAL AND
INTERNATIONAL
BUSINESS
CONTEXTS
(SM0269)
Northumbria University Newcastle
Name: Zhou Yuchun
ID: 18039145

Table of Contents
Part 1.....................................................................................................................................................2
Porter’s National diamond analysis to South African Mobile Telecom Industry:..............................2
Factor Conditions:.............................................................................................................................3
Demand Conditions:..........................................................................................................................4
Related and the Supporting industries:..............................................................................................4
Firm Strategy, Structure and Rivalry:................................................................................................7
Government:......................................................................................................................................7
Chance:..............................................................................................................................................9
Part 2...................................................................................................................................................10
Market Entry strategy:.....................................................................................................................10
Part 3...................................................................................................................................................12
Contemporary Management Issues:.................................................................................................12
Quality of the Work life of the Employees and Corporate Social Responsibility............................12
Corporate Governance:....................................................................................................................14
Conclusion:..........................................................................................................................................15
Reference:............................................................................................................................................17
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Part 1
Porter’s National diamond analysis to South African Mobile Telecom Industry:
Michael porter has developed the porter Diamond model. He has explained the
reasons as well as the factors behind the reason of becoming competitive in a specific market
setting, developed by the companies. This is the approach which has utilised the clusters of
the industries, for ensuring the competitiveness of a specific company is being compared in
the sector of performance with any other company (Castro, Espina, & Tinoco, 2017).
While an organization tries to shift and establish their position in the foreign country,
the Porter’s Diamond Model can be used as the main purpose is to ascertain the different
business-related opportunities along with generate competitiveness in comparison to the other
competitors which are present in the market. In the respective aspect, the Porter’s Diamond
Model will be appropriate for identifying and analysing the competitiveness of the telecom
industry in South African market as it will be suitable for assessing the different opportunities
which will be available for them in the South African market and gain competitiveness which
will be suitable for the overall success of the company in comparison to the other competitors
present in the respective market(Meschi, Phan, & Wassmer, 2016).The structure below is
displaying the major factors considering the diamond model.
Figure 1: Porter extended diamond model
(Source:(Herciu, 2013)
Factor Conditions:
In this case, factors are principally comprised of the certain resources like the physical
resources, capital resources, knowledge resources, infrastructure etc. There is the existence of
some special resources where an extremely influential role is being played in a specific
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industry for gaining competitive benefits. In the framework of the establishment of the
establishment of the industry regarding telecommunication, a significant role is to be played
by the below factors which assists the industry for the gaining of the competitive
advantage(Fang, Zhou, Wang, Ye, & Guo, 2018).
With the human resources, the created factor conditions include the different factors
which is inclusive of the skilled workforce, good infrastructure along with scientific
knowledge base which plays a crucial role in generating competitiveness. As commented by
Porter, the different created factor conditions need to be upgraded in the constant manner
with the help of the development of skills along with creation of the new knowledge(Naidoo,
Donovan, Milner, & Topple, 2016). In case of the respective telecom sector, which is shifting
their operations in South Africa, there can be issue related to the slowdown of the processes,
in such scenario, as the basic factors provide the initial advantage and these should be
supported by the different advanced factors as to maintain success(Hollender, Zapkau, &
Schwens, 2017). On the contrary, there should be proper advancement of the factor conditions
through development of skills which will be suitable for creating the specialized factors and
then continually work on them for upgrading the same (Wonglimpiyarat, 2018).
Demand Conditions:
According to this factor, the home country is required for playing a tremendously vital
role. A pivotal role is being played for understanding the desires as well as the requirements
of the customers. Therefore, the factors have proved to be helpful in a specific way for the
creation of the attributes (Gunarathne & Senaratne, 2018).
In the respective scenario, the demand conditions play a crucial role which enables the
better understanding of the needs along with desires of the different customers in a suitable
manner( Wan, Orzes, Sartor, & Di Mauro, 2019). Moreover, in case of the South African
Telecom Industry, the demand conditions will be suitable for shaping the attributes of the
domestically prepared products along with services which created pressure on quality and it
creates huge pressure for quality along with innovation that will be playing a successful role
in the overall growth of the company positively.
On the other hand, it can be seen that in the telecom industry, there are different
competitors present in the market which are constantly upgrading the technology to meet the
expectations of the customers and gain revenue. In the case of the respective telecom industry
in South African market, the innovation is the key element, else the company can face
tremendous challenges in competing with the other competitors. In the present scenario, the
different customers are more attracted towards the companies and products which are
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