Question 5 Select a leading industry in your home country and answer the following: Using Porter’s Diamond model, discuss its four attributes, Using the Double Diamond model identify the international...

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Answer
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Question 5

Select a leading industry in your home country and answer the following:
a) Using Porter’s Diamond model, discuss its four attributes
Answer

The state of Kuwait is situated in Arabian Peninsula and the chief industry of the region is the oil
and petroleum industry; the region is producing oil since 1940 and it has the fourth largest
reserve of oil in the global market. Therefore, the oil and petroleum industry of Kuwait will be
evaluated on the basis of porter diamond model, which is as follow;
Factor condition

Factor conditions are concentrated towards analyzed the availability of elements required for
continuous production such as raw material, labor, resources etc. Under this factor also Kuwait
has a strong industry position because of high availability of raw material in the region; as it has
been found out that 101.5 billion barrel of oil is available in the region. Beside this, another
major factor is labor; there is lack of skilled labors in the region so there is high presence of
expatriates in the region. In terms of FDI, oil is an attractive industry but to protect the economy
of the region government control the management of oil industry.
Demand Conditions

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Another important factor is the present market demand of the product in the market and the
growth rate as well; it will facilitate in understanding the future scope of the industry. The
demand for petroleum is very high in the international market; the forecasted figure for oil
demand in the global market for the year 2013 is 90.7 mb/d(Wood, 2013). the region also
export heavily to the global market, in the year 2010 Kuwait exported US dollar 61.698
billion. Therefore, industry attractiveness of oil industry of Kuwait is very high in the
international market.
Diagram 1: diamond model
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Related and Supporting Industries
To uplift any industry the role of supporting industry is inevitable; these supporting...