958 words 4 pages
. Porter and National Competitive Advantage
i. Introduction. Suggest answer to the question and outline how to validate your suggested answer by clarifying the analytical structure ii. Key Questions. Simply: this is not just a question about Porter. If you are thinking of outlining Porter and little else, please think again. Very briefly state what the concepts of national competitiveness and the diamond entail, which is naturally connected to the work of Porter. But the question is asking you to focus on critique. Therefore, what are the key issues, debates and problems with the ideas about the Competitive Advantage of Nations and the national diamond? The second half of this synergic question suggests you employ other ideas and a lot
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Students spend part of their training program in industry.

3. Porter ignores the influence of history. In reality, so far as I know there is no sociology worthy of the name which does not have a historical character (Durkheim, 1895). Historically, in America there has been a strong popular distrust of concentrated economic power, despite the American proclivity for creating large scale organisations. The Sherman Antitrust Act was passed as a result of public resentment against enterprises like the standard oil trust that had managed to corner a large proportion of the American oil market, and enforcement of the act was one of the populist hallmark of President Theodoare Roosevelt. Political Populism was supplemented by a liberal economic ideology that believed that social welfare was maximized by vigorous competition, not by cooperation among large companies

In Germany by contrast, there has never been a comparable distrust of size per se. German industries from the beginning were export oriented; their size was more often compared to the global markets they served rather than to narrow domestics ones. Unlike American firms, Whose competitive world often began and ended completely inside the United States, German Companies had a Much stronger sense of National Identity in a world of strong international competitiors. Because they were export oriented the potential inefficiencies of domestic monopoly was minimized; large german firms were kept


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