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Vinatex and Arvind Mills - Essay Example

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VINATEX AND ARVIND MILLS Name: School: Course: Tutor: Date: Introduction Porters diamond model is an economical systems outlook developed by Michael Porter, and published in his book, “the competitive advantage of Nations.” The model explains why certain industries become highly competitive at some locations and not others (Rugman & D'Cruz, 1993)…
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Vinatex and Arvind Mills
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"Vinatex and Arvind Mills"

Download file to see previous pages The model is divided into two steps, where in the first phase, the group of successful industry players are plotted for ten important trading countries. At the second stage, the historical competition of certain industries is reviewed, towards exposing the dynamic processes involved in the creation of competitive advantage (Rugman and D'Cruz, 1993). The review entails the historical analysis of the industry and the industry players. SWOT analysis is a structured planning model used during the evaluation of the environment of a business – both internal and external (Hill and Westbrook 1997). The areas reviewed include the internal strengths of the entity and the internal weaknesses of the entity. The other two aspects reviewed are the external surroundings of the entity, particularly, the opportunities available to the business and the threats that face it (Hill and Westbrook 1997). Vinatex Textile Company is a textile company based at Vietnam, and it is one of the largest companies in the country. It covers 50 joint stock corporations and 40 joint venture corporations in its productive sector – mainly in the manufacture of textiles. ...
The company manufactures different fabrics, and is the fourth-largest manufacturer and exporter of denim. The company runs a mega-art and a value retail chain, all of which stock the brands of the company. Porter’s Diamond Model of Vinatex Textile Company The factor conditions of Vinatex Textile Company include the wide employee base of more than 120,000, which is about 5% of the total employee count for the entire industry. Factor conditions also comprise of diverse company’s production sector, across the 50 joint stock and the 40 joint venture corporations (Do 2008). The diversity of its production sectors enables the company to increase and expand its production to different product lines. The factor conditions in favour of the success of the company include its diverse sectors, including fashion design, fashion magazine, universities, vocational schools, supermarkets, and real estate. These different sectors improve the company’s competitiveness locally and internationally. Examples of the competency areas created from the different sectors include that the company uses the fashion magazine to market its fabrics and other product lines. In addition, it uses the university and the vocational training centres to develop the talent required to recruit high-potential talents, which can increase its productivity (Do, 2008). The company uses its supermarket outlet to market its products and fabrics, which enable it to offset the threat of its competitors. The demand conditions are favourable for Vinatex, as Vietnam’s full membership into the world trade organization (WTO), in 2007, opened the production of the company and the country in general, to the world. Following the acquisition of the membership, all restrictions on the trade of textiles were ...Download file to see next pagesRead More
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