Managing International Business: Porter Diamond Model Analysis of TATA and Microsoft

This presentation provides an analysis of the Porter Diamond Model for managing international business, focusing on two contrasting multinational companies, TATA and Microsoft. It explores their strategies, products, and services.

MANAGING INTERNATIONAL
BUSINESS

INTRODUCTION
 Managing International business is the most complex
process for an organisation because it comprises
various risks such as market trends, rivalries, labour
demand and supply, consumer preferences etc.
 The presentation will outline porter diamond model of
two contrasting and leading multinational companies
TATA and Microsoft.

TATA TATA is a Multinational conglomerate
organisation.
 The success of firm started after purchase of
several international companies.
 The company offers different types of
services across the globe and is known as
largest employer worldwide.

MICROSOFT
 Microsoft is American multinational technology
organisation.
 The services of company are focused on
developing and selling of licenses, personal
computers, computer software, consumer
electronics and almost all technology based
computer services.
 The firm is best known for its technology services
worldwide.

PORTER DIAMOND
MODEL
 Porter Diamond Model is the tool which is
used by organisation to analyse best strategy
and competitive advantage.
 It is and toll which helps the companies in
evaluating all the necessary functions of
business such as factor conditions, demand,
support industry, firm and rivalry strategy,
chance and government.

FACTOR CONDITIONS
TATA
 TATA Company is known as largest employer and
provides opportunity to Human Resource across
the globe.
 The Human Resource department of organisation
is focused on recruiting young minds and
collaboration of their knowledge.
 The firm enables corporate environment to
workers and us also aims at making optimum
utilisation of infrastructure and environment.

FACTOR CONDITIONS
 MICROSOFT
 This relates to raw materials and work force of
company and Microsoft has highly innovative and
skilled information technology Human Resource
worldwide.
 To ensure enthusiasm among man power the
firm offers highly democratic and flexible policies
of Human Resource.
 Universities such as, Stanford, Caltech etc.
provides high class research and development
facilities to Microsoft.

DEMAND CONDITIONS
 TATA
 The continuous growth of company in India and
other international areas has assisted the firm in
establishing competitive advantage.
 Innovation in products and services of
organisation is the key due to which consumer
demand for companies’ goods has increased
rapidly.
 In addition the, production of cheapest car TATA
Nano across the globe was the factor that
remarked its innovation and demand.

DEMAND CONDITIONS
 MICROSOFT
 The demand for highly equipped system and
technological tools has been increasing because
these days technology has become essential part
of Humans.
 The increasing demand for gadgets is the
motivation for the company to come up every
time with improved quality and
innovated services in global market.

RELATED AND SUPPORTING
INDUSTRIES
 TATA
 The merging and acquisition is the unique
strategy of Company which helped the firm on
internationalising its market and strategies.
 Innovation and recruitment strategies are the
key drivers of TATA which helped the
organisation in standing out competition and
support growth in different industries such as
motors, steel, consultancy etc.

RELATED AND SUPPORTING
INDUSTRIES
 MICROSOFT
 The increasing demand of technological services,
support from other firm has become essential to
attain growth in industry.
 Microsoft is one of the brands which have not
sold its services to any telecommunications or
network system.
 Market share of enterprise is based on its
innovation which is increasing continuously
worldwide wide as it owns global leadership
positions for its core product that in windows
operating system.

FIRM STRATEGY, STRUCTURE AND
RIVALRY
 TATA
 Globalisation has led huge impact on economy of
world but it has majorly affected automobile
industry.
 The firm also started working in partnership with
Ford, the leading international automobile
company which was biggest market rivalry if
industry.
 The partnership with Ford revealed the strategy
and plan of TATA which was to establish its
presence worldwide by overcoming competition.

FIRM STRATEGY, STRUCTURE AND
RIVALRY
 MICROSOFT
 Strategy of innovation is the only trump card
with Microsoft to maintain its lading position in
industry at global level.
 Structure of Microsoft is unified as the firm aims
at making innovation own technology and do
note merge with other IT.
 Technological advantage at international level
has increased competition for Microsoft and to
overcome the management of business aims at
constant innovation in gadgets and technological
tools with improved quality.

CHANCE
TATA
The company was aware of changing
economic factors and therefore
grabbed the chance and strategies
merger and acquisition.
The acquisition strategy if TATA
helped the enterprise in making its
entity, a global brand.

CHANCE
MICROSOFT
Opportunity has play crucial role in
managing growth and success of
Microsoft at international level.
Increasing need of software and
windows in teaching practices,
researcher fields and also for
recording business transaction has
boosted opportunity and chance of
growth of Microsoft in IT industry
globally.

GOVERNMENT
TATA
Government played a crucial role in
driving companies’ growth and
success.
The support from Indian government
to TATA on its plant construction, Tax
benefits and Incentives has assisted
organisation in establishing its
successful market operations.

GOVERNMENT
MICROSOFT
US Government has contributed to
growth and development of Microsoft for
which it has even faced criticism at initial
level.
The government even provided the
company with research work after
analysing its successful efforts over
development.

CONCLUSION
 The presentation summarized brief
discussion about two contrasting and
leading companies of era that is
Microsoft and TATA.
 It outlined Porter Diamond model
analysis of both the companies which
helped in differentiation between their
strategies, products, services and
functions.

REFERENCES
 Books and Journals
 Verbeke, A., 2013. International business strategy. Cambridge
University Press.
 Dixit, S. and Joshi, M., 2011. Enhancing Competitiveness of Indian
Automobile Industry: A Study Using Porters Diamond Model.
 Krivorotov, and et.al., 2016. Optimisation model for industrial
complex competitiveness: a path to sustainable innovation
process. World Review of Entrepreneurship, Management and
Sustainable Development. 12(2-3). pp.254-269.
 Online
 Microsoft’s Perspective on the Benefits, Challenges, and Potential
Roles for Government in Fostering the Advancement of the
Internet of Things (IoT). 2016. [Online]. Available through:
<https://cloudblogs.microsoft.com/microsoftsecure/2016/06/15/m
icrosofts-perspective-on-the-benefits-challenges-and-potential-
roles-for-government-in-fostering-the-advancement-of-the-
internet-of-things-iot/ >.

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