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Porter's Diamond Model
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TweetNarelle Peng
on 2 April 2013Transcript of Porter's Diamond Model
PORTER'S DIAMOND MODEL China's Competitive Advantage
in the LED Lighting Industry Chance Government Firm strategy
structure
and rivalry Factor condition Demand Condition Related and
supporting
industries LED Package Chip Wafer LED Package CHINA
2010 15.4% global market share; US $12.2B
2015 18.3%; US $20B China will "top out" a new skyscraper every five days for the next three years. Beijing, China Brian Po-Yen Lee
Dawei Zhou
Kapil Nijhawan
Narelle Peng Naved Akhtaruzzaman
Sathya Vanamali
Sean Xiao
Van Ngo Energy efficient regulations including incandescent ban San’an (China)
Financial Performance MOCVD equipment used in semiconductor manufacturing
China owns 68% world demand
$2 - 3M per unit Some Reflection... Better allocation of resources and pressure of competition creates capacityNo direct attention to competence building
A large natural resource base is not sufficient to develop industry
Strategic alliances with organizations in supporting and related industries
Thank you! Questions? Japan's Fukushima Nuclear Crisis in 2011 What is LED Packaging? What is LED Packaging? Chance Chance Chance Chance Factor Condition Factor Condition Factor Condition Government Government Demand Condition Demand Condition Demand Condition Related and Supporting Industries More Reflections... Cooperation among rivals is considerd non-advantageous (decreases the strength of rivalry) but is not always true (i.e. industry standards get developed)
The level of importance of chance as a nucleus for change is not clear
The importance of exchange rates and wage rates in determining competitiveness is overlooked
Digitalization gives all player in the market access to far more information
Last Bit of Reflections... Totally new business model can emerge from outside the industry and vastly change the basis of competition
Globazation improves distribution logistics and communications and allows nearly all businesses to buy, sell and cooperate on a global basis
More emphasis on home-based companies. What about the MNEs?
Full transcriptin the LED Lighting Industry Chance Government Firm strategy
structure
and rivalry Factor condition Demand Condition Related and
supporting
industries LED Package Chip Wafer LED Package CHINA
2010 15.4% global market share; US $12.2B
2015 18.3%; US $20B China will "top out" a new skyscraper every five days for the next three years. Beijing, China Brian Po-Yen Lee
Dawei Zhou
Kapil Nijhawan
Narelle Peng Naved Akhtaruzzaman
Sathya Vanamali
Sean Xiao
Van Ngo Energy efficient regulations including incandescent ban San’an (China)
Financial Performance MOCVD equipment used in semiconductor manufacturing
China owns 68% world demand
$2 - 3M per unit Some Reflection... Better allocation of resources and pressure of competition creates capacityNo direct attention to competence building
A large natural resource base is not sufficient to develop industry
Strategic alliances with organizations in supporting and related industries
Thank you! Questions? Japan's Fukushima Nuclear Crisis in 2011 What is LED Packaging? What is LED Packaging? Chance Chance Chance Chance Factor Condition Factor Condition Factor Condition Government Government Demand Condition Demand Condition Demand Condition Related and Supporting Industries More Reflections... Cooperation among rivals is considerd non-advantageous (decreases the strength of rivalry) but is not always true (i.e. industry standards get developed)
The level of importance of chance as a nucleus for change is not clear
The importance of exchange rates and wage rates in determining competitiveness is overlooked
Digitalization gives all player in the market access to far more information
Last Bit of Reflections... Totally new business model can emerge from outside the industry and vastly change the basis of competition
Globazation improves distribution logistics and communications and allows nearly all businesses to buy, sell and cooperate on a global basis
More emphasis on home-based companies. What about the MNEs?