Porter's Diamond Analysis

Porter's Diamond Analysis

• 1.
  ASSIGNMENT NO :1 INTERNATIONBUSINESS TOPIC: PORTER’S DIAMOND ANALYSIS SUBMITTED TO: REHAN AHMAD SUBMITTED BY: NEELAM ASAD ROLL NO: 10 ‘‘A’’ M.COM 4
• 2.
  INTERNATION BUSINESS PORTER’S DIAMONDANALYSIS INTRODUCTION: Water is a necessity for all living things. The healthy benefits of water are obvious to everyone. Humans are made up mainly of water- in fact 70% water(sufi group, 2013), so no doubt that drinking plenty of water is so vital to our well-being. Without water we would literally dehydrate, which could result in shutdown of vital organs and ultimately end in death. That is why I chose mineral water (SUFI & NESTLE)for my assignment. NATIONAL DIAMOND COMPETITIVE ADVANTAGE: PORTER’S FACTOR ENDOWMENT: Factors can be of two types:  BASIC factors  ADVANCED factors BASIC FACTORS: Pakistan is rich in national resources so investment in mineral water business is a healthy decision. The water plants are situated at very wide and big area. This is an indoor activity so climate does not affect the operations but due to shortage of electricity, this sector is facing shutdown problems. The company has stand by generators but it creates financial pressure on company in terms of money. ADVANCED FACTORS: In this sector large space is utilized for building because of heavy machinery. And yes also has well qualified R&D department, up to date machinery so it can deliver excellence to its customers.Pakistan is in top ten (9th) labour forces of the countries of the world(Thomas Brinkhoff, 2013), so no need to import labour, and the wage rates are also low as compared to other countries. DEMAND CONDITIONS: As water is essential for our life, and in country like Pakistan where there is a problem of clean and pure water, the demand of bottled water is very high. The domestic customers are becoming sophisticated and demanding day by day so there is a trend found in Pakistan that people are shifting form tap and home water filters to 100% balanced mineral water. In winter season this sectors has to face a little low demand but in summer season especially in May to August there is huge demand. This huge demand is forcing companies in this sector to innovate and to meet high standards of product quality(Charles W.L. Hill)0 to gain competitive advantage. RELATED AND SUPPORTING INDUSTRIES: This industry is supported by many other industries like:  Carbon resources industry Page 1
• 3.
  INTERNATION BUSINESS PORTER’S DIAMONDANALYSIS              Water Treatment chemicals High Quality Total Industrial Water Management Ozone Generator Automatic Mineral Water Purification and Filling Plant Water softener Plastic industry Colour label printers industry Complete bottled eater operation machinery Bottle caps industry Distribution industry Engineering industry Package industry Advertisement industry FIRM STRATEGY, STRUCTURE AND RIVALRY: In this sector, engineers are appointed at the top level so they can emphasis on improving the production process.The structure follows in this sector is mostly horizontal. All strategies made by the top management and information gave to the low management. Like other sectors this sector also has rivals like:  Nestle  Aquafina  Kinley  Atlantis Pure  Gourmet  Aquaguard The level of completion in this sector is very high because every company strive to be at the top. IS THIS SECTOR COMPETITIVE IN THE INTERNATIONAL MARKET? Yes, this sector is capable of competing internationally.There are other countries like Pakistan that faces clean and pure water problems so we can export our product to these countries. As the customers are sophisticated and demanding, so companies in this sectors are striving to meet high standards of product quality which gave them competitive advantage on others. Page 2
• 4.
  INTERNATION BUSINESS PORTER’S DIAMONDANALYSIS Bibliography Charles W.L. Hill. (n.d.). Internation Business. sufi group. (2013). Retrieved from http://www.sufigroup.biz/water/health.htm Thomas Brinkhoff. (2013). Retrieved from world by map.org: http://world.bymap.org/LaborForce.html Page 3