The fundamental of competition has shifted significantly to the creation and assimilation of knowledge hence, role of the nation has grown.
It can be seen that with the changes that take place in the economic factors is due to the competition level in the market. Transportation industry will be taken into consideration for this task. So, the answers will be given by considering the Kuwait market.
It can be stated that transportation sector in Kuwait have proper policies related to transportation and also it helps the companies to consider the competitive advantage prevailing in the market. It attracts and retains FDI so that it can be easy for the industries to grow in the market. The main of the paper is to focus on the factors which are responsible and required to attract and retain the foreign direct investment. So, Porter’s diamond of national advantage is considered to consider the factors which are impacting the FDI in the Kuwait market. To achieve this it is important to compete with the competitors present in the market or with the competitive international investment. It can also been seen that there is a need for the Kuwait companies to focus on growing and competing against the companies which are in the market (Kiggundu and DeGhetto, 2015).
There are many international organizations employing the people and it can be analyzed that without FDI it is not possible for the companies that have the direct connection with the jobs. FDI can be considered as the concept in which the interest of the business is in one country and also the investment is made in the business located in another country. It can be seen that FDI is related with the investment that helps to control the ownership of the business located in the one country by the specific entity which is located in the another country (Phillips and Moutinho, 2017). So, it can also be considered as the foreign portfolio investment which focuses on the direct control of the activities.
Diamond theory of national advantage was introduced by Michael Porter. In this model, it can be stated that the feature of the home country important at the time of focusing on the presence in the international platform. The Diamond of national advantage gives emphasis on the industrial success on the global economy.
Factor conditions
The transportation industry focuses on considering the employees who have proper knowledge of the activities so that growth can be attained. It can be stated that factor conditions are the considered by the companies and also by the industries in the nation. These factors take into consideration the factors related to manufacturing and production. In relation to the Kuwait market it can be seen that there is a need of the employees who have proper knowledge of the activities. With this, it can be simple for the companies to grow in the market. It can also be analyzed that the factor related to production requires the skill employees so that activities can be managed in proper manner (Fang et al., 2018).
Demand conditions
These conditions will help to increase competitiveness in context to the local products which are supplied in the market It has been investigated that when there is local product with the huge supply and demand in the foreign market, then in the case it is important to focus on bring improvisation in the overall activities of the foreign market. The demand conditions can also be related to the size of the overall product demand in the domestic market.
Related and Supporting industries
It is evaluated that local supporting industries have proper functioning and also the companies considers proper innovation and cost effectiveness. It can be seen that R&D affect the overall ranking which also impact the overall mission and vision of the company. It also emphasizes on R&D which is important in the transportation industry in Kuwait. Also, it can be analyzed that nonexistence of the supplier can affect the working pattern of the company. If the suppliers who are local are competitive then it will help to maintain the overall cost effectiveness (Lucato, Vieira and Filho, 2015).
Firm strategy, structure and rivalry
It has been analyzed that Kuwait government also focuses on maintaining the dynamic structure so that growth can be attained in the market. The structure of the organization should be flat so that the overall operations of industry can be managed effectively. It is important that local conditions impacted the overall operations of the industry in the home country. Also the agreement has helped to minimize the overall cost of the import so that exports can be improved in a proper manner. Also, the country emphasizes on maintaining the good structure so that it can be simple to attract and retain the maximum foreign companies who are investing in the country. The transportation organizations help to attract the customers on the global platform (Westeren et al., 2018).
So, by analyzing the overall factors, it can be concluded that porter diamond model can assist in maintaining the rivalry on the international platform. By emphasizing on this model, it can be stated that transportation industry can consider various benefits related to foreign market as it can help in considering the growth in the market.
Attracting and retaining FDI
Kuwait market can easily retain the FDI by emphasizing on the economic framework. There are various factors which will be selected by the investors at the time of investing in any country. The factors are related to general security environment and also with the legal and regulatory process which should be maintained. It can be seen that the investors are focusing on investing in the next three years and the country is also one the third platform. Also the focus is given on the five priorities to attract and retain the FDI. The five priorities or the areas are related to food, agro, infrastructure and tourism (Krugman, 2017).
The transportation industry is considered as one of the largest industry in Kuwait. Also, the competitive advantage can be related to focus on considering the specific products which can help in meeting the need of domestic and foreign needs. It can be seen that there are basic policies which should be considered so that competitive advantage can be maintained in the competitive market. It is important that government should focus on the policies so that it can be easy to maintain the transportation sector and to attract FDI so that it can be easy to maintain the overall economy (Smit, 2010).
The strategy is related with forums in which there are problems that should be resolved by the companies so that In house capacity can be maintained. This is considered as the way that can help to connect with the people from one location to the other. The producers will also locate the users or the customers. Also to consider the innovative approach, it is important to have online and offline hubs so that it can be easy to consider the creative solution. It is important that there should be open industrial forums so that it can be easy for the industry to manage in the overall efforts (Harding, 2017).
The policy network approach states that the resources, strategies and also values are different. Also, it helps to maintain the innovative and open relationship by focusing on exchanging the own technology and resources. It has been considered that the government should emphasize on the policy network approach so that strong image can be maintained in the mind of the customers on the global platform. This policy network approach can help to maintain the relations and also it boost the overall efficiency in the transportation sector.
The government should also focus on managing the science and technology council and committee for the leaders from the industry of the Kuwait. The leaders of the industry should also promote the innovation technologies by considering the solutions. It is important for the government to consult with the companies so that it can be easy to achieve growth and also it will help to create the jobs in the particular industry sector. These centers will enhance the overall competitiveness that can assist in the roadmaps and structures. There should be proper principles and guidelines that can help the business to achieve growth in the competitive market.
Research and development is also considered as one of the strategy that can help the companies to maintain their image in the competitive market. Innovative technology can also help the transportation industry to differentiate the products from the competitors. Also, it is important for the Kuwait government to focus on considering the latest technology and resources so that good image can be maintained in the international market. There are various rules and policies that can affect the overall productivity and targets of the industry on the global platform (Wonglimpiyarat, 2015).
Conclusion
It is important to consider the innovative policies so that it can be easy for the industry to compete in the Kuwait market. So, it can be concluded that porter diamond model has an important role in managing the overall rivals and also the benefits in the global platform.
References
Fainshmidt, S., Smith, A. and Judge, W.Q., 2016. National Competitiveness and Porter’s Diamond Model: The Role of MNE Penetration and Governance Quality. Global Strategy Journal, 6(2), pp.81-104.
Fang, K., Zhou, Y., Wang, S., Ye, R. and Guo, S., 2018. Assessing national renewable energy competitiveness of the G20: A revised Porter’s Diamond Model. Renewable and Sustainable Energy Reviews, 93(6), pp.719-731.
Harding, S., 2017. MBA management models. Routledge.
Kiggundu, M.N. and DeGhetto, K., 2015. Regional integration: Review of the management literature and implications for theory, policy, and practice. Africa Journal of Management, 1(4), pp.303-332.
Krugman, P., 2017. Crises: The price of globalisation?. In Economics of Globalisation (pp. 31-50). Routledge.
Lucato, W.C., Vieira, M. and Filho, J.D., 2015. The competitive distance as a tool for competitiveness improvement. International Journal of Business Excellence, 8(2), pp.181-196.
Phillips, P. and Moutinho, L., 2017. Contemporary issues in strategic management. Routledge.
Westeren, K.I., Cader, H., de Fátima Sales, M., Similä, J.O. and Staduto, J., 2018. Competitiveness and Knowledge: An International Comparison of Traditional Firms. Routledge.
Wonglimpiyarat, J., 2015. New economics of innovation: Strategies to support high-tech SMEs. The Journal of High Technology Management Research, 26(2), pp.186-195.
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