EssayClub.com - Free College Essays and Term Papers

Zara Porter Analysis

ACADEMIC PAPER
The diamond approach to the
competitiveness of Korea’s
apparel industry
Michael Porter and beyond
Byoungho Jin
Oklahoma State University, Oklahoma, USA, and
Hwy-Chang Moon
Seoul National University, Seoul, South Korea
Abstract
Purpose – The Korean textiles and apparel-related industry has played a major role in the country’s
development; however, this sector’s competitiveness is decreasing due mainly to labor costs. As with
the country’s economic development, the new sources of competitive factors need to be strategically
developed and cultivated. The purpose of this study is to explore what constitutes a country’s
competitiveness in the global apparel market after losing its labor competitiveness and how a country
effectively achieves it.
Design/methodology/approach – This study employs two competitiveness models, Porter’s
diamond model and a generalized double diamond model, as a theoretical framework. Along with two
theoretical models, this study employs extensive literature reviews, examples of successful firms, and
four interviews with field practitioners in the Korean apparel industry.
Findings – Beginning with Porter four determinants (factor conditions, demand conditions, related
and supporting industries, and firm strategy, structure, and rivalry), new sources of competitive
advantage factors are suggested for the evolving industry. The generalized double diamond model
incorporates international activities, which may occur either within a country or outside a country.
Utilizing generalized double diamond model, the future directions and solutions for the industry with
the identified new competitive factors were suggested.
Originality/value – Based on the models and the identification of new competitive factors, the
Korean apparel industry is reviewed, and recommendations are made for its continued growth in the
global marketplace. Implications pertaining to the creation of a dynamic self-reinforcing diamond...