Logistics and Supply Chain: Porter’s Diamond Model and Market Entry Strategy

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Logistics and Supply Chain 1
Contents
Part 1: Porter’s Diamond Model......................................................................................................1
Part 2: Market Entry Strategy..........................................................................................................5
Part 3: Contemporary Management Issues......................................................................................7
References........................................................................................................................................9

Logistics and Supply Chain 2
Part 1: Porter’s Diamond Model
Porter Diamond Model is a National Advantage Theory that is formed to provide upper hand to
the countries and organizations due to several aspects present to them in the external market.
This model was developed by Michael Porter who successfully analysed the company strategy
and fiscal competition and need to implement the national advantage strategy. This model
explains the factors that drive the competitive advantage to the country and its economy as well.
This model evaluates the ways in which organizations can competitive advantage using
competitiveness of the country in the worldwide environment (Mishra, Rao, Monga, &
Vishwanath, 2016). This model focuses on the reason why certain industries in some nations
gain advantage in the worldwide view where as others do not work effectively. Thus, it can be
said that this model helps the companies in determining whether it is profitable to invest in
certain departments of the county or not (He, & Lin, 2016).
This factor argues the capability of the organization to strive in the external international
environment and how the company can attain location advantage from the country. Several
factors present in this model that affect the strategic condition of the country and the company
are labour, knowledge, government and culture. Talking about the solar renewable energy
industry of the country India, the fact should be noted that the industry has seen major growth in
the past few years and is expected to grow progressively in future as well (Kharub, & Sharma,
2017). The overall renewable industry is fourth most attractive renewable energy market present
in the world. The country is ranked at the fifth position in the solar renewable energy capacity
that makes the industry resourceful and innovative for an international organization to invest in
the country.
Talking about the solar energy of the country, the fact should be noted that this industry
specifically in the renewable industry has immense future growth as the government of India is
aiming to install 100 GW of solar power in India by 2022. This contract will be given to an
organization present in the Indian solar industry. So, it can be said that the entry of the company
in this segment currently will be profitable. As the earlier target of government was 20,000 MW
which has now increased to 100 GW. However, the company Tata Power Solar will give biggest
competition to the company in the Indian industry. Major large scale solar projects are conducted

Logistics and Supply Chain 3
by Tata group only. Thus, this will provide competitive difficulty to the business to grow in
Indian market. Secondly, considering the demand factor of the industry, it should be noted that
more companies have started to towards corporate social responsibility in the environment.
Resulting to which, they are insisted to use solar power against electricity in India. The solar
revolution has led the companies to set up megawatts and large solar parks in India. Solar lines
are setup at remotest Indian villages so as to provide them solar energy. Thus, considering the
factor condition aspect of the Porter diamond model, it should be noted that there is less
availability of solar power in several parts of the country which is profitable for the business
there is more work to do for the business in India. Whereas if the company will enter in another
country where solar lines are already placed so they would not be able to attain sufficient sales in
the market.
Further, it should be noted that this model is framed to analyse the upper hand advantage that
certain countries and group attain due to various circumstances or favourable factors available
only to them in the external international environment (Kharub, & Sharma, 2016). With the help
of this model, the organization aiming to invest in this industry can successfully analyse the ways
through which they can increase their profitability. The primary factors on which the success of
the country in dependent include population, location, natural resources and land. Apart from the
four factors that are linked with the country features, there are four factors present in the model
that are firm strategy and rivalry, factor conditions, related and supporting industries and last
demand conditions (Li, & Zhang, 2018). Further, below mentioned is the elaboration of the
model along with the analysis of the favourableness of Indian solar renewable energy industry to
work for the European company: