Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 DIAMOND ANALYSIS.................................................................................................................3 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................7
INTRODUCTION Diamond model was developed by Michael Porter. This is an economic model that is establishedespeciallyforsmallsizedbusinessesanditcanalsobeusedbyotherbig organisations. This model assists the business entity in developing understanding about their competitive position in international market. It is also referred as Porter’s Diamond Theory of National Advantage. Various organisation within clusters impact each other in order to enhance productivity, facilitating as well as fostering innovation and ensuring the desired results. The enterprise working under this cluster has an opportunity to expand their business in global market, mark their presence and to gain competitive advantage. The study focuses on applying Porter’s cluster theory in order to explain the origin of Toyota’s competitive advantage. MAIN BODY Toyota Motor Corporation is a Japanese company dealing in automotive manufacturing industry. It consists of approx. 263,444 employees worldwide. Toyota enterprise is considered as the fifth largest organisation in terms of revenue. It is also the largest automotive manufacturer. Toyota firm is known as First company that has manufactured more than 10 million vehicles per year. It is also considered as the market leader that has sold hybrid electric vehicles and Toyota is the only organisation that has motivated the mass market acceptance of Hybrid vehicles in international as well as domestic market (Wonglimpiyarat, 2017) Porter’s diamond model is named as diamond because it consists of all constituents that are significant in international business competition are assembled in form of diamond. Model has adopted the concept of clusters of products group that has same features.Porter’s cluster diamond theory has analysed the major four determinants that may assist cited firm in attaining a national advantage. Theory states that the combination of four determinants has a great influence on the competitive strength of Organisation. Porter believes that various competitive industries can develop specialised cluster of domestically based organisation. These clusters are correlated with each other by vertical relations like supplier integrating with buyer or vice versa.Through horizontalrelationbycustomer,distributionchannel,technology,skillsetc.Specificor specialised cluster allow country to develop business system that may result into economic success and gaining competitive advantage. 1
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
International Operations Management PDFlg...
|15
|4210
|590
Operations Management : Toyota Motor Corpoartionlg...
|14
|4556
|69
International Business Capstonelg...
|11
|2811
|64
Leadership & Operation in Toyota Corporationlg...
|18
|5968
|289
Leadership and operations in the organisationlg...
|17
|5316
|360
Management and Organization Assignment - Toyota Motorlg...