The Applicability of the Porter Diamonds Framework Essay Example for Free

The Applicability of the Porter Diamonds Framework hearThe car industry contributes for 40% of German exports. Germany is the third world car producer and approximately 6 million cars are produced every year. Among these firms are the luxury firms much(prenominal) as BMW, Mercedes, Porsche and Audi. Lets consider, scratch of all, the factors conditions in relation to the car industry.These factors express the Nations present in factors of production such as unskilled labor, skilled labor, infrastructure, natural resources * The industries are based on a high expert region, in the center of a z bingle of economic development. * Germany has always considered very important the transmission of scientific and technical knowledge from the mid XIX century, a huge net of technical cultivates has been created (the Gewerbeschulen).Those schools became later engineers school and technical universities. Today, Germany sustain this effort in favor of a knowledge society by winning me asures such as the Exzellenzinitiative which is backed by Angela Merkel and allocate 1,9 billions in order to maintain German research among the top 3 in the world. This initiative wishes also to sustain the creation of clusters. * In Germany, approximately one job out of seven is linked (directly or indirectly) to the car industry.The labor is very skilled. * Germanys position is also an advantage the country is in the heart of Europe and shares borders with many countries. * The tran sportsman infrastructure is optimum (railway, important harbors, road infrastructure) The Demand conditions are another factor of the Porters ball field * The topical anaesthetic consumer is demanding quality is very important * Huge population.* The wage level is high among the population* gain of revenue levels in emerging countries. The demand abroad is high. The Related and supporting industries (clusters of industries) factors * battlefront of competitive suppliers* Presence of clusters (and government incentives in order to develop them) * Presence of a labor market that develops specific skills relevant for the cluster Firm strategy, structure and rivalry factors* The four luxury brands are based in the very(prenominal) region. Therefore there is a strong competitiveness among them. However, each brand has a specific positioning. * The local context favors investments and constant improvements. Government* There are no speed limits in Germany therefore sport cars can be used to their full potential. * Incentives to sustain scientific development and the creation of clusters. 1 . http//fr.wikipedia.org/wiki/%C3%89conomie_de_l%27Allemagne.