Gurus On Marketing

Role of Chance
Some events such as wars, technological breakthroughs, unexpected
changes in financial markets, and so on also play an important part
in shaping a nation’s competitive advantage.
The Role of Government
Governments can influence other key factors which determine
national competitive advantage.
The above factors constitute what is known as ‘Porter’s Diamond’.
Global marketing strategy should take account not only of the national
diamond but also focus on the domestic diamond. It is the domestic
rivalry that puts pressure on companies to look at global markets.
Porter writes:
‘And having been tested by fierce domestic competition, the
stronger companies are well equipped to win abroad.’
Source: Porter, Michael (1990). ‘The Competitive Advantage of
Nations’.
According to Warren Keegan 26 :
‘Other researchers have challenged Porter’s thesis that a firm’s
home-base country is the main source of core competencies and
innovation. For example, Professor Alan Ragman of the University
of Toronto argues that the success of companies based in small
economies such as Canada and New Zealand stems from the
diamonds found in a particular host country or countries. For
example, a company based in a European Union (EU) nation may
rely on the national diamond of one of the 14 other EU members.
Similarly one impact of the North American free Trade Agreement
(NAFTA) on Canadian firms is to make the US diamond relevant
to competency creation. Rugman argues that, in such cases, the
distinction between the home nation and host nation becomes
blurred…’
70
GURUS ON MARKETING