1. MICHALE PORTER’S APPORACH
FOR GLOBALISATION
PRESENTED BY-NAVEEN.ER,NAVEEN
FRANCIS,MUNAVAR

2. INTRODUCTION
• Globalization of markets involves the growing
interdependency among the economies of the
world; multinational nature of
sourcing, manufacturing , trading, and
investment activities; increasing frequency of
cross-border transactions and financing; and
heightened intensity of competition among a
larger number of players

3. • Globalization of markets is best reflected in
the "internationalization" of business
transactions. This means that one or more
aspects of economic activity carries an
international character.
• Development of new technologies and the
proliferation of new products also contributes
to the globalization of markets.

4. M.PORTERS APPORACH FOR
GLOBLISATION
• In the theory of competitive advantage of
nations, Michale Porter makes a new
apporach for both understanding and creating
economic success in a global economy.
• Using this apporach around the world, Porter
relates the competitiveness of nations and
regions directly to the competitiveness of
their home industries.

5. • Moreover he argues that in advanced economies
today , religion clusters of related industries
(rather than individual companies or single
industries)are the source of jobs , income and
export growth.
• These industry clusters are geographical
concentrations of competitive firms in related
industries that do business with each other and
that share needs for common talent , technology
and infrastructure.

6. • Essentially Porter’s approach requires regions
, cities or countries to identify concentrations
of similar or related firms that are driving the
economy and to assess what resources rooted
in the region – ranging from
• Research universities , to cultural attractions
,airports and skilled workers – provide these
clusters of firm with a competitive advantage
in responding to global markets.

7. • The competitive advantage of nations has
transformed thinking about basis of national
competitiveness , and has had a massive
impact on public policies towards religion and
national economic development.

8. • In spite of globalization of markets and
production successful companies in certain
industries are found in specific countries:
-- Japan ha most successful consumer
electronics companies in the world.
-- Germany has many successful chemical and
engineering companies in the world.
-- It shows that national has an important
bearing on the competitive position of the
companies in the global market.

9. • So according to Michale Porter , the nations
competitive position in an industry depends
on factor conditions , industry rivalry
, demand conditions and related and
supporting industries.