Question

While Kodak had 85% of the camera industry market share in the U.S., Fuji came from Japan where there were numerous camera companies (including, Minolta, Canon, Olympus, and others) that were all strong competitors to Fuji, but none of them dominant, which meant Fuji benefited from which of the following within its diamond of national competitive advantage?
a. Strong strategy and rivalry
b. Strong demand
c. Strong input
d. Strong related and supporting industries

Answer 1

Answer:

The correct answer is letter "A": Strong strategy and rivalry.

Explanation:

American Business professor Michael Porter (born in 1947), proposed the "Theory of National Competitive Advantage of Industries" mostly known as the Diamond Model. Porter proposes that entities compete in foreign countries, they needed to consider four components in their competitive advantage:

1. Firm Strategy, Structure, and Rivalry: domestic rivalry is important to develop international competitiveness because it pushes entities to create sustainable strengths.
2. Factor Conditions: refers to natural resources and capital the firm relies on and how it helps to upgrade them.
3. Demand Conditions: tight demand forces entities to improve to keep and increase their market share.
4. Related and Supporting Industries: supply chain components such as suppliers and vendors contribute to the process of improving the quality and time when the output is delivered to end-consumers.