Intersection Marketing

Business Strengths + Insights from Market Intelligence = Customer-Compelling Values.

<h2><a href="http://johniduh.yolasite.com/breakthrough-marketing/eating-and-drinking-on-the-go-trends-led-beverage-manufacturers-introducing-plastic-and-cans-beverages-such-as-plastic-coke-lacasera-teems-eat-can-malt-can-juice-eat-" title="Eating-and-Drinking-on-the-go trends led beverage manufacturers introducing Plastic and Cans Beverages, such as plastic: Coke, Lacasera, Teems, eat, Can-malt, can-Juice eat.">Eating-and-Drinking-on-the-go trends led beverage manufacturers introducing Plastic and Can Beverages, such as plastic: Coke, Lacasera, Teems, Can-malt, Can-Juice eat</a>, etc</h2>

Eating-and-Drinking-on-the-go trends led beverage manufacturers introducing Plastic and Can Beverages, such as plastic: Coke, Lacasera, Teems, Can-malt, Can-Juice eat, etc

Posted 176 weeks ago
<h2><a href="http://johniduh.yolasite.com/breakthrough-marketing/trends-in-healthy-living-through-immune-boosting-led-alliance-in-motion-global-developed-c24-7" title="Trends in healthy living through immune boosting led Alliance in Motion Global developed:  C24/7">Trends in healthy living through immune boosting led Alliance in Motion Global developed: C24/7</a>.</h2>
<p><small><span>C24/7 Natura-Ceuticals contains the most number of anti-oxidants with approximately 22,000 phytonutrients in one product. The ingredients of C24/7 work in “synergy” to produce the maximum result for your body, making it the most potent anti-aging product in the history of supplementation.</span></small></p>
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<p><span>C24/7 is the new breakthrough in food supplements; a unique and patented formulation that delivers the highest amount of anti-oxidants and phyto-nutrients.<br/><br/>C24/7 is packed with benefits for different needs, from controlling blood sugar and cholesterol, to healthy blood circulation and sexual vitality.</span><span></span></p>

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Trends in healthy living through immune boosting led Alliance in Motion Global developed: C24/7.

C24/7 Natura-Ceuticals contains the most number of anti-oxidants with approximately 22,000 phytonutrients in one product. The ingredients of C24/7 work in “synergy” to produce the maximum result for your body, making it the most potent anti-aging product in the history of supplementation.

C24/7 is the new breakthrough in food supplements; a unique and patented formulation that delivers the highest amount of anti-oxidants and phyto-nutrients.

C24/7 is packed with benefits for different needs, from controlling blood sugar and cholesterol, to healthy blood circulation and sexual vitality.

Posted 176 weeks ago
<h2><a href="http://johniduh.yolasite.com/breakthrough-marketing/dual-trend-in-the-in-hot-drinks-and-the-use-of-herbs-led-kasapreko-a-ghanaian-based-alcoholic-manufacturer-introduces-alomo-bitters-" title="Dual-trend in the in Hot-Drinks and the use of herbs led KASAPREKO, a Ghanaian based alcoholic manufacturer introduces Alomo Bitters.">Dual-trend in the in Hot-Drinks and the use of herbs led KASAPREKO, a Ghanaian based alcoholic manufacturer introduces Alomo Bitters.</a></h2>
<p><small><strong>Alomo Bitters</strong><span class="apple-converted-space"> </span><span>is a herbal alcoholic product made</span><span> </span><span>from carefully chosen tropical plant extracts and</span><span> </span><span>very well known for its proven medicinal values.</span><span> </span><span>It has its roots in the traditional herbal industry</span><span> </span><span>that is meticulously researched by the Centre for</span><span> </span><span>Scientific Research into Plant Medicine a World</span><span> </span><span>Health Organization affiliate, based at Mampong</span><span> </span><span>Akuapem in the Eastern region of Ghana.</span></small></p>
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<p><span class="yui-tag-span yui-tag"><span class="yui-tag-span yui-tag"><strong><br/>Alomo Bitters</strong><span class="apple-converted-space"> </span><span>– A herbal based drink, is not just any ordinary alcoholic drink. With its origins from Ghana, Alomo Bitters is made from carefully selected tropical plant extracts which forms part of a secret recipe. It’s popular for its aphrodisiac qualities.</span></span><span><br/></span></span></p>
<p><span class="yui-tag-span yui-tag">To quote a recent article by Euromonitor -<span class="apple-converted-space"> </span><em>“Africa brings one of the most surprising alcohol growth stories in recent times. Distilled in Ghana, sales of Alomo Bitters in neighboring Nigeria have skyrocketed over the last few years. What’s behind the jump? The drink is said to hold aphrodisiac qualities for men and women. Nigerians mix the beverage with non-alcoholic beer – sales of that have soared in the country too. Plans to export the drink to more countries on the continent are said to be afoot. -</em><span class="apple-converted-space"></span><strong><em>Euromonitor’s</em></strong><span class="apple-converted-space"></span><em>Malandrankis says the supposed sexual enhancing properties “hit all the right buttons in Nigeria.” Watch out for it on local shelves soon.”</em><span></span></span></p>

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<p><span class="yui-tag-span yui-tag">Packaged in a<span class="apple-converted-space"> </span><strong>200ml PET, 30ml Sachet</strong><span class="apple-converted-space"> </span>and<span class="apple-converted-space"> </span><strong>750ml Glass</strong><span class="apple-converted-space"> </span>bottle Alomo Bitters is developed in conjunction with the Center for Scientific Research into Plant Medicine in Ghana, an affiliate of the World Health Organization,<span class="apple-converted-space"> </span><strong>Alomo Bitters contains natural components/ingredients which promote/stimulate/enhances vitality and general well being.</strong><span></span></span></p>

<p></p>
<p><span class="yui-tag-span yui-tag">Alomo Bitters is also c<strong>leanses bowel and relieves body pain, helps ease menstrual pains/cramps in women and contains anti malaria properties</strong><span></span></span></p>

<p></p>
<p><span class="yui-tag-span yui-tag">Alomo Bitters is enjoyed all over the world, it’s vitalizing and best enjoyed straight or mixed with your favorite juice or soda.<span></span></span></p>

<p></p>
<p><span class="yui-tag-span yui-tag">In 2012 Alomo Bitters was awarded a Super Brand. It has also been identified to be amongst the top 5 emerging brands in the world by CNN money.<span></span></span></p>

<p></p>

<p><a href="http://money.cnn.com/gallery/news/companies/2013/10/08/exotic-drinks/6.html"><strong><span class="yui-tag-span yui-tag"><a href="http://money.cnn.com/gallery/news/companies/2013/10/08/exotic-drinks/6.html">http://money.cnn.com/gallery/news/companies/2013/10/08/exotic-drinks/6.html</a></span></strong></a></p>
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<p><span></span></p>

Dual-trend in the in Hot-Drinks and the use of herbs led KASAPREKO, a Ghanaian based alcoholic manufacturer introduces Alomo Bitters.

Alomo Bitters is a herbal alcoholic product made from carefully chosen tropical plant extracts and very well known for its proven medicinal values. It has its roots in the traditional herbal industry that is meticulously researched by the Centre for Scientific Research into Plant Medicine a World Health Organization affiliate, based at Mampong Akuapem in the Eastern region of Ghana.


Alomo Bitters
 – A herbal based drink, is not just any ordinary alcoholic drink. With its origins from Ghana, Alomo Bitters is made from carefully selected tropical plant extracts which forms part of a secret recipe. It’s popular for its aphrodisiac qualities.

To quote a recent article by Euromonitor - “Africa brings one of the most surprising alcohol growth stories in recent times. Distilled in Ghana, sales of Alomo Bitters in neighboring Nigeria have skyrocketed over the last few years. What’s behind the jump? The drink is said to hold aphrodisiac qualities for men and women. Nigerians mix the beverage with non-alcoholic beer – sales of that have soared in the country too. Plans to export the drink to more countries on the continent are said to be afoot. -Euromonitor’sMalandrankis says the supposed sexual enhancing properties “hit all the right buttons in Nigeria.” Watch out for it on local shelves soon.”

Packaged in a 200ml PET, 30ml Sachet and 750ml Glass bottle Alomo Bitters is developed in conjunction with the Center for Scientific Research into Plant Medicine in Ghana, an affiliate of the World Health Organization, Alomo Bitters contains natural components/ingredients which promote/stimulate/enhances vitality and general well being.

Alomo Bitters is also cleanses bowel and relieves body pain, helps ease menstrual pains/cramps in women and contains anti malaria properties

Alomo Bitters is enjoyed all over the world, it’s vitalizing and best enjoyed straight or mixed with your favorite juice or soda.

In 2012 Alomo Bitters was awarded a Super Brand. It has also been identified to be amongst the top 5 emerging brands in the world by CNN money.

http://money.cnn.com/gallery/news/companies/2013/10/08/exotic-drinks/6.html

Posted 176 weeks ago
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<h2><a href="http://johniduh.yolasite.com/gurus-on-marketing/chinalife-introduced-%E2%80%9Cultra-slim-tea%E2%80%9D-kinetizing-" title="Chinalife Introduced “Ultra Slim Tea” - Kinetizing!">Chinalife Introduced “Ultra Slim Tea” - Kinetizing!</a></h2>
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<p class="MsoNormal"><span></span><strong>Chinalife,</strong> born in 2007,  felt that the concept of natural healthy living with herbs and tea had, for far too long, been thrown together with images of perfectly pure people restricting themselves from indulgence. </p>
<p class="MsoNormal"><span>With such reason in mind, <strong>Chinalife</strong> introduced </span><strong>Ultra Slim Tea, </strong><span>a high grade herbal tea traditionally used to help reduce weight & regulate blood fat levels - an effective and natural way to lose weight. </span><strong>Ultra Slim Tea</strong><span> can be infused up to 3 times simply by adding fresh water. Ultra Slim Tea defines a  market space, Kinetizing!</span></p>

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Chinalife, born in 2007,  felt that the concept of natural healthy living with herbs and tea had, for far too long, been thrown together with images of perfectly pure people restricting themselves from indulgence. 

With such reason in mind, Chinalife introduced Ultra Slim Tea, a high grade herbal tea traditionally used to help reduce weight & regulate blood fat levels - an effective and natural way to lose weight. Ultra Slim Tea can be infused up to 3 times simply by adding fresh water. Ultra Slim Tea defines a  market space, Kinetizing!

 

Posted 176 weeks ago
<h2><a href="http://johniduh.yolasite.com/gurus-on-marketing/historical-flashback-create-a-business-space-in-the-newspaper-industry" title="Historical Flashback create a Business space in the Newspaper Industry">Historical Flashback creates a Business space in the Newspaper Industry</a></h2>
<p><span>The desire to document Nigeria’s historical past events has led to the emergence of a newspaper called <strong>Historical Flashback.</strong> The newspaper  serves as the reservoir of information about Nigeria’s past from the pre colonial period, publishing past historical stories in a refreshed manner for documentation purpose. Many things happened in the country  and they continue to happen because many people did not know what happened in the past. </span><strong>Historical Flashback</strong><span> is the first of its kind in the newspaper industry. </span><strong>Historical Flashback</strong><span> is in the market to fill the gap of documentation. The documentation of the past and materials about Nigeria’s past events that cannot be found anywhere. “If you pick the newspaper you can read about events of 100 years ago, stories of past events before and after the country’s independence. The publishers are researching on the past stories in the country so that they can be freshly presented for those who have anything to do with Nigeria. It’s not just newspaper, its historical, as well as documented information. </span></p>

Historical Flashback creates a Business space in the Newspaper Industry

The desire to document Nigeria’s historical past events has led to the emergence of a newspaper called Historical Flashback. The newspaper  serves as the reservoir of information about Nigeria’s past from the pre colonial period, publishing past historical stories in a refreshed manner for documentation purpose. Many things happened in the country  and they continue to happen because many people did not know what happened in the past. Historical Flashback is the first of its kind in the newspaper industry. Historical Flashback is in the market to fill the gap of documentation. The documentation of the past and materials about Nigeria’s past events that cannot be found anywhere. “If you pick the newspaper you can read about events of 100 years ago, stories of past events before and after the country’s independence. The publishers are researching on the past stories in the country so that they can be freshly presented for those who have anything to do with Nigeria. It’s not just newspaper, its historical, as well as documented information. 

Posted 177 weeks ago
<h2><a href="http://johniduh.yolasite.com/gurus-on-marketing/kinetizing-marketing-has-the-ability-to-drive-successes-consider-the-introduction-of-energy-bars-whose-market-was-fragmented-by-definition-targeting-at-different-demograp" title="Kinetizing Marketing has the ability to drive successes. Consider the introduction of energy bars, whose market was fragmented by  definition targeting at different demographics.">Kinetizing Marketing has the ability to drive successes. Consider the introduction of energy bars, whose market was fragmented by definition targeting at different demographics.</a></h2>
<p><strong><span> </span></strong><strong><span>Energy bars</span></strong><span> are supplemental bars containing </span><span><a href="http://en.wikipedia.org/wiki/Cereal" title="Cereal"><span>cereals</span></a></span><span> and other high energy foods targeted at people that require quick energy but do not have time for a meal. They are different from </span><span><a href="http://en.wikipedia.org/wiki/Energy_drink" title="Energy drink"><span>energy drinks</span></a></span><span>, which contain </span><span><a href="http://en.wikipedia.org/wiki/Caffeine" title="Caffeine"><span>caffeine</span></a></span><span>, whereas bars provide </span><span><a href="http://en.wikipedia.org/wiki/Food_energy" title="Food energy"><span>food energy</span></a>. </span><span>Holland & Barrett stock a wide range of energy bars that combine </span><a href="http://www.hollandandbarrett.com/pages/categories.asp?cid=5"><span>sports nutrition</span></a><span> with great tasting confectionary. Customer favourite Powerbar, offer a wide choice of tasty energy bars that are a great source of </span><strong>protein</strong><span> and long lasting energy. Trek bars also come in a range of delicious forms, including protein packed flapjacks and virtually fat free brownies.</span>However, there are Energy bars for women, for children, for sports people; even protein bar, Nutrition bar, Honey bar etc.</p>

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Kinetizing Marketing has the ability to drive successes. Consider the introduction of energy bars, whose market was fragmented by definition targeting at different demographics.

 Energy bars are supplemental bars containing cereals and other high energy foods targeted at people that require quick energy but do not have time for a meal. They are different from energy drinks, which contain caffeine, whereas bars provide food energyHolland & Barrett stock a wide range of energy bars that combine sports nutrition with great tasting confectionary. Customer favourite Powerbar, offer a wide choice of tasty energy bars that are a great source of protein and long lasting energy. Trek bars also come in a range of delicious forms, including protein packed flapjacks and virtually fat free brownies.However, there are Energy bars for women, for children, for sports people; even protein bar, Nutrition bar, Honey bar etc.

 

Posted 177 weeks ago
<p class="MsoNormal"><strong><span>Revlon: An ultimate Kinetizing Marketer, smart at Category innovation. Consider  the innovation of  @Colorstay Lipstick!“</span></strong></p>

<p class="MsoNormal"><span>Revlon is a global color cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirant / deodorants and beauty care products company whose vision is<span class="apple-converted-space"> </span></span><span class="corporatebold"><strong>Glamour, Excitement and Innovation through High-quality Products at Affordable Prices</strong></span>. <span>The company began its success with <strong>opaque long-lasting nail enamel</strong> sold to beauty salons. Revlon sold its nail enamel through department stores and selected drugstores. llicitudin.</span> <span>Revlon® is one of the strongest consumer brand franchises in the world. Revlon’s global brand portfolio includes Revlon® color cosmetics, Almay® color cosmetics, SinfulColors® color cosmetics, Pure Ice® color cosmetics, Revlon ColorSilk® hair color, Revlon® beauty tools, Charlie® fragrances, Mitchum® anti-perspirant / deodorants, and Ultima II® and Gatineau® skincare and its products are sold in over 100 countries across six continents. Websites featuring current product and promotional information can be reached at<span class="apple-converted-space"> </span></span><span><a href="http://www.revlon.com/" target="_blank"><span><a href="http://www.revlon.com">www.revlon.com</a></span></a></span><span>,</span><span></span></p>

Revlon: An ultimate Kinetizing Marketer, smart at Category innovation. Consider  the innovation of  @Colorstay Lipstick!“

Revlon is a global color cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirant / deodorants and beauty care products company whose vision is Glamour, Excitement and Innovation through High-quality Products at Affordable Prices. The company began its success with opaque long-lasting nail enamel sold to beauty salons. Revlon sold its nail enamel through department stores and selected drugstores. llicitudin. Revlon® is one of the strongest consumer brand franchises in the world. Revlon’s global brand portfolio includes Revlon® color cosmetics, Almay® color cosmetics, SinfulColors® color cosmetics, Pure Ice® color cosmetics, Revlon ColorSilk® hair color, Revlon® beauty tools, Charlie® fragrances, Mitchum® anti-perspirant / deodorants, and Ultima II® and Gatineau® skincare and its products are sold in over 100 countries across six continents. Websites featuring current product and promotional information can be reached at www.revlon.com,

Posted 177 weeks ago
<h2><a href="http://johniduh.yolasite.com/gurus/starbucks%E2%80%98-howard-schultz-is-one-of-my-nominees-for-kinetizing-strategy" title="Starbucks‘ HOWARD SCHULTZ is one of my nominees for kinetizing strategy" target="_self">Starbucks‘ HOWARD SCHULTZ is one of my nominees for kinetizing </a>Initiatives</h2>
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<div><span class="userContent">When HOWARD SCHULTZ, starbucks ceo till year 2000,came to the company in 1982, he recognized an unfilled niche for “cafes serving gourmet coffee directly to customers“. This strategic initiative helps starbucks achieve loyal customer base in Seatle. In the next growth phase, it applied the same successful formular that had worked wo<span class="text_exposed_show">nders in seattle, first in other cities in the pacific Northwest, then through out North America, and finally, across the globe. Once starbucks had established itself as a presence in thousands of cities internationally, it sought to increase the number of purchases by existing customers with “kinetizing strategy“ that led to new in-store merchandise including compilation CDs, Starbucks Duetto Visa Cards that allows customer to recieve points towards starbucks‘ purchases when they use it; and high-speed internet wireless access at thousands of starbucks‘ HOTSPOTS through a deal with T-MOBILE. Finally, starbucks kinetized into grocery store aisles with Frappucino bottled drinks, starbucks‘ self-branded ice-cream, and the purchase of a tea retailer, Tazor Tea!</span></span></div>
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Starbucks‘ HOWARD SCHULTZ is one of my nominees for kinetizing Initiatives

When HOWARD SCHULTZ, starbucks ceo till year 2000,came to the company in 1982, he recognized an unfilled niche for “cafes serving gourmet coffee directly to customers“. This strategic initiative helps starbucks achieve loyal customer base in Seatle. In the next growth phase, it applied the same successful formular that had worked wonders in seattle, first in other cities in the pacific Northwest, then through out North America, and finally, across the globe. Once starbucks had established itself as a presence in thousands of cities internationally, it sought to increase the number of purchases by existing customers with “kinetizing strategy“ that led to new in-store merchandise including compilation CDs, Starbucks Duetto Visa Cards that allows customer to recieve points towards starbucks‘ purchases when they use it; and high-speed internet wireless access at thousands of starbucks‘ HOTSPOTS through a deal with T-MOBILE. Finally, starbucks kinetized into grocery store aisles with Frappucino bottled drinks, starbucks‘ self-branded ice-cream, and the purchase of a tea retailer, Tazor Tea!
Posted 177 weeks ago
<h2><a href="http://johniduh.yolasite.com/blog/ford-repositioned-existing-products-services-resulting-in-an-original-category-" title="Ford Used Kinetizing Model Repositioned Existing Products/Services Resulting in an Original Category." target="_self">Ford Repositioned Existing Products/Services Resulting in an Original Category.</a></h2>
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<p><span>In the United Kingdom, Ford positioned its Galaxy Minivan in relation to First-Class Air Travel comfortable enough to be suitable for busy executives. By highlighting attributes far different from those that would appeal to buyers looking for a family vehicle, the automaker used a classic Kinetizng approach created a Minivan subcategory.</span></p>
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Ford Repositioned Existing Products/Services Resulting in an Original Category.

In the United Kingdom, Ford positioned its Galaxy Minivan in relation to First-Class Air Travel comfortable enough to be suitable for busy executives. By highlighting attributes far different from those that would appeal to buyers looking for a family vehicle, the automaker used a classic Kinetizng approach created a Minivan subcategory.

Posted 177 weeks ago
<h2><a href="http://johniduh.yolasite.com/blog/royal-philips-used-market-insight-to-kinetize-attuned-to-consumer-tech-trend" title="ROYAL PHILIPS Leverage Market Insight Plus Consumer Electronics-Trend to Kinetize" target="_self">ROYAL PHILIPS Used Insights from Consumer Electronics-Trends, Kinetiz</a>ing</h2>
<p><span class="usercontent"><span>Philips researchers asked 1,650 consumers and 180 customers in dozens of in-depth and qualitative interviews and focus groups on what was most important to them in using technology. Respondents from the Uk, U.S, France, Germany, The Netherlands, Hong Kong, China and Brazil agreed on one theing: they wanted the benefits of tech</span></span><span class="textexposedshow"><span>nology without the hassles. With these, Philips crafted “Sense and Simplicity” campaign with the believe that their brands plus innovation will reflect simplicity – the major of mordern technology. To achieve its plans, Philips tirlessly integrate media: the campaign consists of prints, Online, Television advertisement showcasing perspectives on the journey to simplicity, resonating with consumers. It just make sense!</span></span></p>

ROYAL PHILIPS Used Insights from Consumer Electronics-Trends, Kinetizing

Philips researchers asked 1,650 consumers and 180 customers in dozens of in-depth and qualitative interviews and focus groups on what was most important to them in using technology. Respondents from the Uk, U.S, France, Germany, The Netherlands, Hong Kong, China and Brazil agreed on one theing: they wanted the benefits of technology without the hassles. With these, Philips crafted “Sense and Simplicity” campaign with the believe that their brands plus innovation will reflect simplicity – the major of mordern technology. To achieve its plans, Philips tirlessly integrate media: the campaign consists of prints, Online, Television advertisement showcasing perspectives on the journey to simplicity, resonating with consumers. It just make sense!

Posted 177 weeks ago

Porter's Diamond of National Advantage

Posted by John Iduh on Friday, April 12, 2013 Under: Business Principles That Work

Classical theories of international trade propose that comparative advantage resides in the factor endowments that a country may be fortunate enough to inherit. Factor endowments include land, natural resources, labor, and the size of the local population.

Michael E. Porter argued that a nation can create new advanced factor endowments such as skilled labor, a strong technology and knowledge base, government support, and culture. Porter used a diamond shaped diagram as the basis of a framework to illustrate the determinants of national advantage. This diamond represents the national playing field that countries establish for their industries.


Porter's Diamond of National Advantage

Firm Strategy,
Structure,
and Rivalry




Factor
Conditions














Demand
Conditions





Related and
Supporting
Industries



The individual points on the diamond and the diamond as a whole affect four ingredients that lead to a national comparative advantage. These ingredients are:
  1. the availability of resources and skills,

  2. information that firms use to decide which opportunities to pursue with those resources and skills,

  3. the goals of individuals in companies,

  4. the pressure on companies to innovate and invest.


The points of the diamond are described as follows.


I.  Factor Conditions
  • A country creates its own important factors such as skilled resources and technological base.

  • The stock of factors at a given time is less important than the extent that they are upgraded and deployed.

  • Local disadvantages in factors of production force innovation. Adverse conditions such as labor shortages or scarce raw materials force firms to develop new methods, and this innovation often leads to a national comparative advantage.


II.  Demand Conditions
  • When the market for a particular product is larger locally than in foreign markets, the local firms devote more attention to that product than do foreign firms, leading to a competitive advantage when the local firms begin exporting the product.

  • A more demanding local market leads to national advantage.

  • A strong, trend-setting local market helps local firms anticipate global trends.

III.  Related and Supporting Industries
  • When local supporting industries are competitive, firms enjoy more cost effective and innovative inputs.

  • This effect is strengthened when the suppliers themselves are strong global competitors.

IV.  Firm Strategy, Structure, and Rivalry
  • Local conditions affect firm strategy. For example, German companies tend to be hierarchical. Italian companies tend to be smaller and are run more like extended families. Such strategy and structure helps to determine in which types of industries a nation's firms will excel.

  • In Porter's Five Forces model, low rivalry made an industry attractive. While at a single point in time a firm prefers less rivalry, over the long run more local rivalry is better since it puts pressure on firms to innovate and improve. In fact, high local rivalry results in less global rivalry.

  • Local rivalry forces firms to move beyond basic advantages that the home country may enjoy, such as low factor costs.

The Diamond as a System
  • The effect of one point depends on the others. For example, factor disadvantages will not lead firms to innovate unless there is sufficient rivalry.
  • The diamond also is a self-reinforcing system. For example, a high level of rivalry often leads to the formation of unique specialized factors.

Government's Role

The role of government in the model is to:

  • Encourage companies to raise their performance, for example by enforcing strict product standards.

  • Stimulate early demand for advanced products.

  • Focus on specialized factor creation.

  • Stimulate local rivalry by limiting direct cooperation and enforcing antitrust regulations.

Application to the Japanese Fax Machine Industry

The Japanese facsimile industry illustrates the diamond of national advantage. Japanese firms achieved dominance is this industry for the following reasons:

  • Japanese factor conditions: Japan has a relatively high number of electrical engineers per capita.
  • Japanese demand conditions: The Japanese market was very demanding because of the written language.
  • Large number of related and supporting industries with good technology, for example, good miniaturized components since there is less space in Japan.
  • Domestic rivalry in the Japanese fax machine industry pushed innovation and resulted in rapid cost reductions.
  • Government support - NTT (the state-owned telecom company) changed its cumbersome approval requirements for each installation to a more general type approval.

Recommended Reading

Porter, Michael E., The Competitive Advantage of Nations

In this 800+ page work, Michael Porter introduces his diamond of national advantage and its self-reinforcing nature. He then applies the diamond to examples in both manufacturing and service industries, and uses the value chain to explain the growing role of services. The book concludes with implications on company strategy and national agendas.

In : Business Principles That Work 



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