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Diamond Model of Porter with Reference to Indian Automobile Industry


Submitted By mrzb
Words 1907
Pages 8



Submitted To
Prof. A. K. Kher
Submitted By
Rameez Bagban 03
Shahanawaz Mujawar 11
For the academic year

The Indian automobile industry is one of the key drivers of industrial growth and employment, which will gain rapid importance. In order to accelerate and sustain growth in the automotive sector, a roadmap is needed to steer, coordinate and synergize the efforts of all stakeholders. Exogenous and endogenous factors affecting industry also affects the competitiveness of the firms. Competitiveness captures the awareness of both the limitations and the challenges posed by global competition as an exogenous factor. Underdeveloped economies tend to be competitive by producing cheaper products, developing economies by producing better products, and developed economies by producing innovative products continuously. Though Indian automobile manufacturers are manufacturing innovative products and leading India to a new summit, there are various roadblocks, which prevent this industry from being a global player.

Competitiveness has emerged as a paradigm towards the economic development. Michael Porter has defined competitiveness as productivity with which a nation utilizes its human, capital and natural resources. To understand competitiveness, the starting point must be a nation’s underlying sources of productivity. Productivity depends both on the value of a nation’s products and services –measured by the prices they can command in open markets – and by the efficiency with which they can be produced. Productivity is also dependent on the ability of an economy to mobilize its available human resources. True competitiveness, then, is

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