This document analyzes Porter's Diamond model for the mineral water industry in Pakistan. It discusses factor endowments in Pakistan that make it suitable for mineral water businesses, including natural resources and labor. It also examines demand conditions in Pakistan, where clean drinking water is needed. The mineral water industry relies on and supports many related industries. The industry features high competition among major brands. In conclusion, the mineral water industry in Pakistan has potential to compete internationally.

1. ASSIGNMENT NO :1
INTERNATION BUSINESS
TOPIC: PORTER’S DIAMOND ANALYSIS
SUBMITTED TO: REHAN AHMAD
SUBMITTED BY: NEELAM ASAD
ROLL NO: 10 ‘‘A’’
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2. INTERNATION BUSINESS
PORTER’S DIAMOND ANALYSIS
INTRODUCTION:
Water is a necessity for all living things. The healthy benefits of water are obvious to
everyone. Humans are made up mainly of water- in fact 70% water(sufi group, 2013), so no
doubt that drinking plenty of water is so vital to our well-being. Without water we would
literally dehydrate, which could result in shutdown of vital organs and ultimately end in
death. That is why I chose mineral water (SUFI & NESTLE)for my assignment.
NATIONAL
DIAMOND
COMPETITIVE
ADVANTAGE:
PORTER’S
FACTOR ENDOWMENT:
Factors can be of two types:
 BASIC factors
 ADVANCED factors
BASIC FACTORS:
Pakistan is rich in national resources so investment in mineral water business is a healthy
decision. The water plants are situated at very wide and big area. This is an indoor activity so
climate does not affect the operations but due to shortage of electricity, this sector is facing
shutdown problems. The company has stand by generators but it creates financial pressure on
company in terms of money.
ADVANCED FACTORS:
In this sector large space is utilized for building because of heavy machinery. And yes also
has well qualified R&D department, up to date machinery so it can deliver excellence to its
customers.Pakistan is in top ten (9th) labour forces of the countries of the world(Thomas
Brinkhoff, 2013), so no need to import labour, and the wage rates are also low as compared to
other countries.
DEMAND CONDITIONS:
As water is essential for our life, and in country like Pakistan where there is a problem of
clean and pure water, the demand of bottled water is very high. The domestic customers are
becoming sophisticated and demanding day by day so there is a trend found in Pakistan that
people are shifting form tap and home water filters to 100% balanced mineral water. In
winter season this sectors has to face a little low demand but in summer season especially in
May to August there is huge demand. This huge demand is forcing companies in this sector
to innovate and to meet high standards of product quality(Charles W.L. Hill)0 to gain
competitive advantage.
RELATED AND SUPPORTING INDUSTRIES:
This industry is supported by many other industries like:
 Carbon resources industry
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3. INTERNATION BUSINESS
PORTER’S DIAMOND ANALYSIS
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Water Treatment chemicals
High Quality Total Industrial Water Management
Ozone Generator
Automatic Mineral Water Purification and Filling Plant
Water softener
Plastic industry
Colour label printers industry
Complete bottled eater operation machinery
Bottle caps industry
Distribution industry
Engineering industry
Package industry
Advertisement industry
FIRM STRATEGY, STRUCTURE AND RIVALRY:
In this sector, engineers are appointed at the top level so they can emphasis on improving the
production process.The structure follows in this sector is mostly horizontal. All strategies
made by the top management and information gave to the low management. Like other
sectors this sector also has rivals like:
 Nestle
 Aquafina
 Kinley
 Atlantis Pure
 Gourmet
 Aquaguard
The level of completion in this sector is very high because every company strive to be at the
top.
IS THIS SECTOR COMPETITIVE IN THE INTERNATIONAL
MARKET?
Yes, this sector is capable of competing internationally.There are other countries like
Pakistan that faces clean and pure water problems so we can export our product to these
countries. As the customers are sophisticated and demanding, so companies in this sectors are
striving to meet high standards of product quality which gave them competitive advantage on
others.
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4. INTERNATION BUSINESS
PORTER’S DIAMOND ANALYSIS
Bibliography
Charles W.L. Hill. (n.d.). Internation Business.
sufi group. (2013). Retrieved from http://www.sufigroup.biz/water/health.htm
Thomas Brinkhoff. (2013). Retrieved from world by map.org:
http://world.bymap.org/LaborForce.html
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