Question

The Indian software industry has become one of the leading global markets. According to Michael Porter, a nation’s competitiveness depends on the capacity of its leading industries to innovate and upgrade. Critically discuss Porter’s diamond of national competitive advantage. Illustrate your answer by referring to Indian software industry as an example. ( 450 Word)

Essay format

Answer 1

Porter's diamond and national competitive advantage:

Porter's diamond is a model designed to help understand the competitive advantage (the elements that permit an organization to create products or administration better or more cheaply over its opponents) that the country conveys because of specific elements accessible to them, and to clarify how government can go about as an impulse to improve a nation's situation in universal market.

As indicated by Michael Porter's Diamond Model (otherwise called the Theory of National Competitive Advantage of Industries) is clarified in a diamond shape framework that why specific industries with in a country are competative on international level globally.

The Porter's Diamond model likewise clarifies the components that can drive competitive advantage for one national market or economy over another. These four variables are as per the following:

1. Firm technique, structure and rivalry;
2. Related supporting industries;
3. Demand conditions; and
4. Factor conditions.

These variables refer to following facts:

1. Competition leads to development of technology innovations.
2. Industries facilitate innovation through exchanging thoughts;
3. The nature of the customers drives innovation improvements.

The concept of competitive advantage:

The variables in competitive advantage permits the productive entity to create more sales or superior margins compared to its market rivals.

The role of the government and chance:

The state and business ought to follow such kind of policies that helps advancement, thoughts and imagination of high quality goods or administrations. National strategy ought to be focused on uplifting certain organizations which can acquire name to the country in the universal market.

The capacity of an industry to innovate and update further help the country to become competative in global market. These enterprises profit by having solid domestic competitors and demanding nearby customers.

A country's competitiveness relies upon the capacity of its leading industries to enhance and update

A country develops on the worldwide level as a Compitetor along with the development in its businesses. Further, enterprises can develop with the assistance and backing of the intellectuals working in the businesses. The country's education system builds up a person as a innovative intellect which further backings in uplifting in the nation's economy. Since, having solid education system providing information to the developing youth they can additionally use their mind in creating innovatives and thoughts to deliver new items or administrations to strengthen the economy.

Indian software industry and national competitiveness:

Indian software industry is at a boom and has to indeed become one of the main worldwide markets in light of the help of the administration arrangements and the intellect of the software experts in the nation.

The country's intensity relies upon the development and redesigning of the IT Software industry's ability. And, nation like India, having significantly youth generation has truly supported the country to develop in the field of IT Industry and compete on worldwide level by contributing towards national development through improvement in intellect and constantly presenting new thoughts in the field of IT Software development.

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