Examining Belgian Pig Meat Domestic And Export Markets
The majority of successful international industries are based in particular regions and cities. In small firms for processing pig meat with old traditions equals low profit in Belgium. This case identify the competitive of Porter’s diamond which determinant factors in pig meat domestic and export markets sector in Belgian. Traill and Pitts (1990) explained that the complexity set of factors are caused by the poor financial situation of pig slaughterhouses in Belgian and cutting items, which are arbitrated by international elements and local. In addition, the government is sited problem on the domestic market which the level of demand and supply. EU subsidies were provoked investment European export. However, this industry lack of translucent animal for living and intensive competition and stress on margins. These reasons can change to work conditions distinguished in small margins effect about production costs calculation. Part of the demand side, the progression of consumption and population are depressed and declined. Furthermore, Belgium has main export markets position because production of quality and service. Slaughterhouses overcapacity and cutting items in France, Germany and the Netherlands has increased due to price competition. The most important thing is that the consumer needs healthy meat. For this reason, the production chain has to unity work to afford healthy meat and quality of production methods to the consumer. Traill and Pills (1990) stated that analysis this case by using Porter’s diamond to identify the competitive of which determinant factors in pig meat of Belgian it has approach strengths and weaknesses. A mention strength of Porter’s diamond is it affords apply checklist to evaluate a sector. The massiveness on mutual relationships diamond model of each feature is particularly helpful.
A vision of weakness of the Porter’s diamond is associated with the fact which it does not offer to quantity of competitiveness in a sector target that it is the limit of an analytical tool. Many synthesises of research is very important and become subjective. Since the model is complete and considers all the factors that influence competitiveness, concentrate in one specific factor as possible in classifying a sector either competitive or uncompetitive. The second weakness is the one of Porter’s diamond model element can be essential that it support balance other elements and outcomes in uncompetitive sector, although the other aim of the Porter’s diamond observes that the competitive position is forceful. This situation is specially when a competitive sector. The definition as possession can be sustained to maintain profitability and market share in overseas markets. Agriculture Canada (1991) is an important characteristic of the high level of state intervention that controls the other elements and also in the European meat sector is a clear example. The Diamond model has attracted praise for its depth level of analysis. According to Grant (1991) Porter has created "a bridge international economics between and strategic management," because of economists tend to study the country as entire with macroeconomic indexes such as inflation rate, interest rate and GDP. However, some researchers consider Porter's diamond model is not complete and requires review (Fitzgerald, 1994). The vulnerability to the diamond model is home based concept does not include cross border activity is useful for analysis of national (Moon et al 1995 1998). The weakness of the diamond model is specific ideas home base by Porter’s concept. For example in the case of Canada, the porter did not determine the nature of transnational activities (Rugman 1991). Porter’s diamond model could not explain the success of resources industries and export dependent in New Zealand which are closely linked to neighbouring countries because of trade agreements. (Cartwright, 1993). Not surprisingly, the diamond model is not sufficient to explain what determines a nation’s of competitive advantage (Singleton 1997). Indeed, Porter’s diamond model is called non-location bound companies particular benefit which are developed by companies in home based before they attract foreign direct investment and can be consigned to other offshoots of the companies. But this ignores notwithstanding, the benefits that multinational firms have already undertaken FDI; enjoy the value added activities in many areas to and from their public governance. Some of these benefits are areas enclose, which means that they obtain from an especial geographic area and not easily consigned abroad (Reinert et al 2009). Accordingly, Porter’s diamond model tends to lack of dependent variables clearly, as a consequences it cannot indentify the pathways that procreate outcomes. This is important to resolve whether cluster performance should be evaluated in terms of development in rate of revenue growth, quality of innovation, value added, market share or some comprises hidden dependent variable such as competitiveness.
The points of criticism of Porter’s diamond model method is a clear recognition of the need to model transnational activity valid in the context of Canada if necessary policy recipe and activities are defined and undertaken. This must be understood deeply and consistent with the nature of multinational enterprise in Canada to partner with a rich experimental and an understanding of the practical of the real action of multinationals. This weakness of this porter’s model would be generalized to many smaller, nations of trade and open (Rugman 2002). Porter's Diamond model understand enhance the dynamic interplay between corporate strategy and its competitive advantages of countries. Although the evolution of structure in domestic industry, but Porter's Diamond model strengthening of the housing can be used to evaluate the advantages of a national environmental agencies , organisations or the industry processing. On the other hand, the level of importance of a core opportunity for change is not clear. Terms of diamonds conditions in the domestic country can prevent companies and industries from global competition. For example, if connected and the advocating industries are not obtain locally, components and materials can be brought from overseas due to in transportation advances and leisure section limited import of restrictions. Also, collaboration between directly competitors is considered disadvantageous because of it reduce the strength of competition such as when based on collaboration, the industry standards gain developed that as a growth market overall. Porter’s diamond may be too focused on the role of the home based firms when driving power is the multinational firms.
Dunning (1993) argues that Porter's diamond model have reconsidered. Multinationals (MNEs) are an increasing play role in the global economy. Instead to focus on traditional foreign direct investment (FDI), these MNEs are more numerous in their ways of global in the world interrelation. The proportion of ratio increasing the assets of the companies of an especial country are procured from in another country or located. The value properties of most industrial countries in the world economy are rising from of building properties rather than building up natural assets. Many of these built properties are untouchable and pertain to commercial corporations not governments or to countries. Furthermore, the problem of Porter’s diamond model is that rather than determining the domestic influence as a special case of diamonds of the worldwide influences, he likes to look after the “addon'' to the previously. The evaluation of Porter’s diamond principles is still good, but of diamonds is still good, but its geographical constituency has been set on other criteria than national political boundaries (Pursiainen 2002). A few improvement and extension to the traditional model, it can use in competitiveness analysis of significant industries or efficient cluster in especial country. Although no comprehensive changes to the nature of the traditional model can be used to provide good information on the state of competitiveness currently of research area, Penttinen (1994) explained. In fact, the performance and capabilities of the diamond model is still strength in the analysis of strategic competition to the industry and region. Fortune 500 companies and governments in many parts of the world has brought out the potential of diamond model analysis to identify opportunities to improve the competitiveness of the industry environment changes widely nation. It may seem weaknesses of the models also appear to see the company and the industry in performance assessment models that can not be found competitiveness factors in combined economics, it has been suitable for developing economies, and it has been created for developing good ones. The diamond model does not evaluate innovations factors that influence competitiveness.
Another weak side of the diamond model is not divided into clear source of competitiveness and complex relationship between different model parts that does not easily interpreted of information. The authors described problems they encounter in a local competition sector and summary perseverance and skilful steps they plan to overcome this problem. They know that the survival of the sector less competitive in the local industry, itself increases doubts about there can be important clusters of the type and size described by Porter (Donnell 1997). The main point of the Porter diamond model was that it excellent from traditional analysis to new integrated, and more to develop on the theory such as cluster based procedure (Rouvinen and Ylä-Anttila, 1999).
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