An Analysis of Porter's Diamond Model

The provided document is an academic assignment that delves into the concept of globalization and its impact on international business. It specifically focuses on Porter's Diamond Model, a framework consisting of four diamond elements (factor conditions, demand conditions, related and supported industries, and organization structure strategy and rivalry) that contribute to a country's competitive advantage. The document discusses each element in detail, highlighting their significance in determining the success of an enterprise in the global market. It also emphasizes the importance of considering these factors when entering or expanding into international markets.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact of globalisation on international marketing................................................................1
CONCLUSION................................................................................................................................5
REFERENCES ...............................................................................................................................7

INTRODUCTION
International marketing is define the application of basic merchandising principle for
more than one country. It is the multinational procedure of planning and implementing the
valuation, conception, dispersion and promotion of specific products and services which create
exchange for satisfy a person and organisational goals or objectives. The report is based on
NEXT company which is multinational clothing, footwear and home products retailing which is
situated in United kingdom (Papadopoulos and Heslop, 2014). The main purpose of this project
is to understand globalisation and also analyse the main drivers of globalisation which impact on
strategic choices. The company is aiming to expand their business in Qatar as there are various
region where the organisation has not deployed their business despite the major cities.
TASK 1
Impact of globalisation on international marketing
Globalisation is the trend which enhancing interaction between people and community in
all over the world. With the advancement of transportation and communication application
which beginning the steamer. This refers to the combination of markets in the worldwide
economy which lead towards to increasing interconnection of national economies. Immense
changes and changes in policy in the field of technology which have result in the growth of spurt
which has eventually led to melting down the international boundaries and led to global reaching
of goods and services. The main policy which have opened the market in domestic and
international level and major products are competitive with globally level. Globalisation is
interesting process which is apparent and this process has change towards increasing economic,
social, financial, cultural, political and environmental interdependency among country. It
involves the increased segregation and interdependence of the international economy (Armstrong
and et. al., 2015). This refers to that there will be rise in trading and commerce and enhancing the
occurrence of capital and labour.
NEXT is the multinational clothing and retail industry which is located in united
kingdom. It has around 700 stores in which 500 stores are based in UK and Ireland and around
200 stores are situated in Europe, Asia and Middle east. They also try to enter in the international
market which help them in gaining maximum profitability for attracting large number of people
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for domestic as well as international level. The company always focus on impact of globalisation
in the emerging market economies.
International business refers to wide range of business functions and activities which are
undertaken across the national boundary. Along with this, rapid increment in globalisation,
global business has became popular and drawn attention of business executives, authorities and
academics (Morschett, Schramm-Klein and Zentes, 2015). International business is totally
different from local business. For enter in the international market, NEXT organisation also
make appropriate strategies and policies which help them in taking safe position and attract large
number of customers. Business manager required to take account within the globalised business
environment while developing and making global strategic decisions and also manage future
acquiring international operations. Globalisation is the leading concept which has became the
major factor in the globalised business in proper manner.
Main drivers of globalisation:
There are various issues or problems which are described among this which also help in
increasing globalisation and many countries are open their doors to such phenomenon in easy
manner. Globalisation drivers help in analysing market situation and condition where Next
company want to expand their business. There are some drivers for globalisation which are
discussed as under:
Cost- This driver refer economies of scale, approving supplying and country specific
fluctuations. It is that drivers, which occurs the cost of production in UK country which is greater
as compare to other nation. The cost of any product are different from country to country and
international organisation can take benefit of this fact. Cost driver of globalisation provide
opportunity for developing and building global scale economies and high product development
value in current time period.
Competitors- These are competitors international schemes and nation interdependence. In
the international market, global company competition will increasing and firm are forced to play
at international level (Knight, 2015). Some strong interdependence among different nations, two
way trades and FDI activities will support this driver. The factor of proper and appropriate
products as a resultant of competition which has made the aspect of globalisation which is
important part in many economies. The competition which arise in the different companies who
enter in the international market place for taking place at global level.
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Government- Authorities drivers are numerous and it include to remove all tariffs and
non tariff barriers, trading policies, grant outlaws, technological standard and possession
regulation for all the sectors. This driver help in reducing the trade tariffs as per this result of
reducing the role of political policies. This has been mentioned that adoption of free market
economy has mainly cause the barriers to international trade. Next company are capable for view
the overall international as their desired market place (Samiee, Chabowski and Hult, 2015). The
low level of barriers and errors of trade and investment which permit organisation to based on
production at optimum areas which achieving location of economy.
Market needs- Market drivers are focus on customers needs and taste which are more
common, the presence of international customers and convey marketing among different nations.
It can be seen that local market is became more concentrated, so the opportunity of growth are
limited and international market expansion is one of the most common way which are select by
many organisation to deal with this situation. This is refers to the NEXT firm which consider the
different market to invest. The variation of schemes and policies of various authorities in the
world which have free market economy has been track to the business. Sat some point,
organisation in different parts of the world have greater accessibility of different nations in all
over the world. It is necessary for company is to fulfil all customers needs and waste according
to their demand in proper manner.
Technology- Technology shape and set the foundation for advanced globalisation. In this
driver, company can make and develop modern techniques and methods which are help firm for
gaining maximum profitability. It is necessary for them is to make innovation products which
revolutionised in this sector. The current growth of internet is the latest technological drivers
which has been created international e-business and e-commerce. When there is some increment
in technology system, transportation, advancement in the trading and commerce of goods and
products which has been offered by organisation like Next (Demangeot, Broderick and Craig,
2015). Such type of development or changes in technologies has been achieving progression in
information processing, communication, transportation methods which are mainly included in
the internet.
Transportation and communication- Transport and communication is important for the
business is to expand their business in other location. This will help in move their product from
one place to another in rapid manner. Globalisation occur in the world economy are not directly
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impact on transport and logistic sector. The procedure of internationalisation is accompanied by
changes in transport networking system, structure of organisation, value of systems and
reduction the role of economic state. Another is communication which is also other factor which
help in easily flow of information from one person to another. International communication is
not interacting between two employees within an organisation but also this will help in surviving
in the large market place.
Political- It is the driver which liberalised the rules and deregulation market that will lead
towards lower the tariffs and allow foreign direct investment in all over the world (De Mooij,
2015). Political drivers also influences the other drivers of globalisation. This will refers to the
growth of the country political system, which includes size and complexity. The existence and
creation has been developed to analyse the situation of political parties which are necessary for
the Next company who enter in the global market place.
Product development cost- It is that cost which spend on the process of making new
product and company require to invest money or capital while developing some new
commodities. The cost of each product are totally based on their quality, raw material and some
other. On the other hand, within international market, the development of products is necessary
for new entrance company because they are need to analyse and observe overall market situation
in proper manner for placed their products and goods. Also they require to identify or analyse
global customers needs and demand and according to their request, Next company try to expand
their business operation and its functions in proper manner.
World economic growth- It is that driver which describe the aggregate growth estimation
that represent the actual rate or cost. The world economy has strengthened the fragilities that are
related to international financial crisis (Armstrong and et. al., 2015). In UK, the company analyse
and examine the correct growth that are expected in the upcoming future time period.
Leverage- It is the investment strategy which are using borrowed money and the usage of
different financial equipment is increasing the desired return on investment. The ability to affect
the system, and market environment which multiplies the consequence of efforts without
enhancing the resources.
International marketing theory:
Porters diamond model
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This is an effective theory which has the capacity to provide assistance to NEXT so that it
can operate effectively at the global level. Different factors are evaluated under this which act as
guidance when operations are expanded to different parts of the world. the four factors that fall
under this model are discussed below:
Factors of productions – This is the first element in the diamond model that discuss the
compulsory inputs which are required to deal the final goods and services in the new market
(Knight, 2015). This included labors raw material etc. which needs to be present in the area
where company wish to expand. There are chances that there is availability of a particular input
but on the same hand the other requirements are not full filled. In that case proper examination
needs to be done so that accordingly judgments are made.
Demand Conditions – the high demand in own country can influence business to operate
globally as it is of utmost importance that continuation in supply is maintained. Only after
fulfilling the needs of home country demands of foreign clients can be accomplished.
Related and supported industries – when a company wish to operate globally it is
important that the related industries also expand as it directly influence the demand of own
products.
Organization structure strategy and rivalry – this is the last element of porter’s diamond
model which varies for every organization and country. It is very much important that the present
state of rivalry existing for a particular brand is evaluated as this has major impact on the growth
of an enterprise (Oleson and et. al., 2017). The strategies and structure should be made such
which is capable of providing maximum returns to the enterprise. Next needs to evaluate the
present structure so that it can be evaluated that weather it needs modification while operating at
global level. Combination of all these factors should be used in order to gain the competitive
advantage.
CONCLUSION
As per the above mentioned report it can be concluded that Globalisation is the trend
which enhancing interaction between people and community in all over the world. International
business refers to wide range of business functions and activities which are undertaken across the
national boundary. For enter in the international market, NEXT organisation also make
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appropriate strategies and policies which help them in taking safe position and attract large
number of customers. Globalisation drivers help in analysing market situation and condition
where Next company want to expand their business.
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REFERENCES
Books and Journals
Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in
international marketing. Routledge.
Armstrong, G. and et. al., 2015. Marketing: an introduction. Pearson Education.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Knight, J., 2015. Five myths about internationalization. International higher education. (62).
Samiee, S., Chabowski, B.R. and Hult, G.T.M., 2015. International relationship marketing:
Intellectual foundations and avenues for further research. Journal of International
Marketing. 23(4), pp.1-21.
Demangeot, C., Broderick, A.J. and Craig, C.S., 2015. Multicultural marketplaces: New territory
for international marketing and consumer research. International Marketing Review.
32(2). pp.118-140.
De Mooij, M., 2015. Cross-cultural research in international marketing: clearing up some of the
confusion. International Marketing Review. 32(6). pp.646-662.
Oleson, M.A. and et. al., 2017. Sports electronic training system with sport ball, and
applications thereof. U.S. Patent 9,645,165.
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