Utilizing the National Advantage Model of Porter for Industrial Analysis in Brazil

Running head: NATIONAL ADVANTAGE MODEL
NATIONAL ADVANTAGE MODEL
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NATIONAL ADVANTAGE MODEL1
Introduction
The study is in regards to utilizing the National Advantage Model of Porter to find the
industry that is best suited for a given country. The country selected for the analysis of industrial
prospects is Brazil. Brazil is one of the fastest growing economies in the world and has
significant resources that can be optimally utilized. The model is used to understand the
industries that have the best potential for growth in the country and contribute towards the
further development of the country. The national advantage model of Porter depends on the
diamond framework. The most important factors in the diamond are competitive intensity,
demand conditions, factor conditions and supporting industries.
Analysis
It is important that the industrial and economic conditions of Brazil are evaluated through
the Porter’s national advantage model to determine the industries with the most effective growth
potential. The four factors discussed above can be used to analyze the industrial situation of the
country namely, competitive intensity, demand conditions, factor conditions and supporting
industries. The country has many different industries that contribute towards its growth. Some of
the more important are agro industries concentrated mainly on coffee and tobacco,
manufacturing industry and iron and steel industry
Factor conditions
The factor conditions of any country refers to the production factors that are present in
the industrial sector of a given country. In the country there is significant prospects for iron and
steel industry growth. Already the country is the 10th largest iron and steel exporter in the world
(Lora et al., 2015). The country has a significant portion of the working population that work in