Question

Imagine that you are now going to expand your company globally, choose three countries that you can expand manufacturing plastic to and discuss the pros and cons of entering into each market using Porters Diamond model.please provide website

Answer 1

I am going to expand my manufacturing plastic business and company globally within the three countries that are

1. USA
2. UK
3. China

Porters Diamond model

The Porter Diamond model refers to the national advantage theory which helps to understand the competitive advantage nations or groups due to some globalization factors availability to them. It also explains the government intervention into it for the development of the country economic condition globally. This model is proactive in nature. This model consists of the following factors such are:

1. Firm strategy, structure and Rivalry – The age of usage plastic is starting in the 21^st century as it took over the Iron age. All the countries having the stable market conditions. So, the company business penetrates the above countries market. The firm strategy should be of differentiation type. The structure of the organization would be decentralized one. This would enhance the expansion of business by collaboration and Acquiring small business. This would enhance in the growth of the company. The cons are that the larger the size of the business needs the line of control over the business.
2. Factors conditions- The factor conditions of these countries vary according to factors such as employability, wages, etc. So, the china has most market capture than the UK and USA. So, the pros would be the enhance in the business in china than other countries. The other countries use the product manufactured by china. This actually develops the market in china and enhance the working conditions or employability in china which would in turn beneficiary to the business. The cons are the expectations would be high so more number of employees are needed for the business work. This would change the mindsets of the employees as they raise the voice to increase the salary or perks, they may form unions. Because of this work would be affected.
3. Related and supporting industries- The related and supporting industries are Raw material industries, Manufacturing industries and retail industries. These industries support the plastic industry to grow. These industries actually support to my business as they provide and support my industry with the information and also the exchange of ideas on continuous development. The cons are that due to the competition in the market the companies do not shares the information and innovation ideas.
4. Demand conditions- The demand of the plastic and plastics product is highest in the China in comparison to other countries. This means the customers are highly demanding the plastic products which helps the industry to innovate and gives additives to the business. The cons of this are that the high demand leads to high usage and it ultimately increase the waste also. This would increase the pollution so there will be intervention of the government laws which harms the business growth and value.
5. Government- The government imposes the ban on the waste plastic import. This would affect the business of plastics in china. So, the UKs level of pollution increases during this year. This effect the change in the scenarios of the plastic industry. The government rules work as the catalyst in this model it may gives pros or cons to the industry.