Porter’s well-known 1990 study on the competitive advantage of nations describes factors that have promoted high rates of innovation in certain industries in certain countries. These are summarized as the porter diamond framework showing how factor conditions, related and supporting industries, demand conditions and the strategy, structure and rivalry of other local firms can force continual improvements in productivity and new product development.

1. How does the development of Indian it fit into this framework?

2. What are the threats and opportunities for western software firms arising from this shift in the competitive landscape? How are they strategically responding to these?

3. What are the costs and benefits of offshoring to India for a large multinational firm? When should it not engage in offshoring?

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1 Porters wellknown 1990 Summary As with domestic marketing global marketers have to settle on how they are to compete in their chosen market According to Porter the principal sources of competitive a... View the full answer