The competitive advantage of the Country Singapore using Porter's Essay

The competitive advantage of the Country Singapore using Porter's Competitive advantage and the Diamond factors - Essay Example We also find out in this study that, though the country has a natural small land area, the country capabilities and efficient and effective use of information technology has more than compensated for its present international position in the shipping and sea transportation industry. The country position and image has been further enhanced through electronic government that has transformed public services. This paper examined the competitive advantage of Singapore using Porters competitive advantage of nations. Porter tries to solve apparent puzzle of a country's competitive advantage, or why one country is more competitive than the other through the attributes of his competitive advantage of nations (Porter 1990).These constitute the essence of his notion of competitive advantage. Porter (1990) echoes an important question in which he provides a succinct answer. For example, "why does a nation achieve international success in a particular industry Porter argues that, the answer to this question lies in four broad attributes of a nation that shape the environments in which local firms compete and promote or impede the creation of competitive advantage." (1990:71). ... The first part of the paper examined Porter's competitive advantage of nation, the second part of the paper looks at this competitive advantage with respect to Singapore. The last part of the paper provides a brief finding conclusions and recommendations. 1.1 Porter's Competitive Advantage of Nation-Porter's Diamond Porter's essential task in his ground breaking tool was to explain why a nation would succeed in a particular industry and not in another. In the words of Porter (1990), "in global competition, firms from any nation can gain scale economies by selling worldwide" (Porter 1990:71). To the researcher, which nation's firms will do so Thus, to Porter, a range of new explanations for trade has been proposed. One is economies of scale which give the nation's firms that are able to capture them a cost advantage that allows them to export, but however this theory are fraud with gross weaknesses (Porter 1990). Porter in his ground breaking work of (1990) postulates that a nation's competitive advantage can be deduced from his four attributes of competitive advantage. These attributes include include (1) factor conditions, which he defines as: "The nation's position in factors of production, such as skilled labor or infrastructure, necessary to compete in a given industry." (Porter 1990). The second attribute in Porter's competitive advantage of Nations is the demand conditions. Porter (1990) refers to this as the nature of home demand for industry's product or service. The third attributes of Porter's competitive advantage of nations focuses on related and supporting industries, which according to Porter (1990) refers as: "The presence or