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The Diamond of National Advantage Assignment
The Diamond of National Advantage Paper
Dolce and Gabbana from Italy decided to set up a subsidiary in China to capitalize on the emerging market. The main question is how can Dolce and Gabbana dominate the Chinese market using Michael Porter’s Diamond of National Advantage? Firstly, the company has to leverage their factor conditions, that is, the critical resources that can enable it to innovate and succeed. China contains one of the best labor markets, which is characterized by cheap labor and raw materials. However, Dolce and Gabbana will have to preserve their brand image, which is associated with quality and luxury commodities. The move will require the organization to capitalize on the resources from its own home-country, Italy, to attract buyers in the new market. China is also a technologically advanced nation. Hence, Dolce and Gabbana will obtain access to the latest digital technologies and machines.
Secondly, customers in Italy and China demand the latest fashion products and affiliated commodities, such as perfumes and jewelry, particularly among the rising middle-class society in China. Hence, Dolce will encounter adequate demanding conditions to innovate and satisfy the new market. Thirdly, Dolce will have to liaise with supporting and related industries in China that can help it co-exist in the local environment. The company might source joint ventures or partnerships with corporations that deal with online marketing like Luxury Pavilion or retail in China and other firms that can provide raw materials that are pertinent to the taste of the local consumers. Lastly, in the firm rivalry, Dolce and Gabbana is likely to encounter a lot of competition in China since there are already-established fashion houses, such as Hugo Boss and Gucci. The rivals will keep Dolce on its feet in terms of innovation and capturing a larger market share in China...................GET A PLAGIARISM FREE COPY