The answer lies in the four characteristics of a country, which are independent and can be systematically combined into a diamond system with national advantages. In the field that constitutes this diamond system, countries can establish their own industries and operate them. These features are:
1. Conditions of factors of production The conditions of national factors of production, such as skilled labor or infrastructure, are the basic competitive factors in this industry.
2. Demand determines the nature of demand for products or services in the local market.
3. Supporting industries and related industries Does the country have supporting industries and related industries for this industry, and are these industries internationally competitive?
4. The strategy, structure and competitive state of an enterprise determine the domestic conditions for the establishment, organization and management of the enterprise, as well as the domestic competitive nature of the country.
These key factors create a national environment in which enterprises are born and learn how to compete. Every point of the diamond system, as well as the system itself, will affect the basic conditions for enterprises to succeed in international competition.
How the diamond system works: Italian ceramic tile industry
1987, the annual output value of Italian tile production industry was 1000 billion US dollars, which is a veritable tile production and export kingdom. Italian ceramic tile manufacturers are mainly concentrated in Sassuolo, Emilia-Ro-Magna province. The locally produced tiles account for 30% of the global output and 60% of the international market, and bring Italy a trade surplus of $654.38+04 billion.
The ceramic tile production in Sassuoluo Town originated from the local pottery and pottery manufacturing industry in the13rd century. Until the end of World War II, there were only a handful of local ceramic tile manufacturers, limited to the local market.
In postwar Italy, the demand for ceramic tiles increased sharply. Because the reconstruction plan needs a lot of building materials, the demand for tiles in Italy is particularly strong, because tiles meet the needs of climate, local taste and building technology. Compared with other parts of Italy, the economic conditions in Sassuolo town are relatively comfortable, and the local people started to build tile factories with little money and necessary organizational skills. In 1955, there were 14 local ceramic tile manufacturers, and in 1962, the number increased to 102.
At the beginning of the development of Italian ceramic tile industry, clay and production technology were completely dependent on foreign countries. In 1950s, the ceramic tile was made of kaolin, which was not available locally in Sassuolo and had to be imported from England. Kilns are imported from Germany, the United States and France, and brick flat rolling mills are imported from Germany. Even the simplest glazing machine depends on imports.
Because equipment vendors and tile vendors live near each other, they also have an unusually close relationship. In the mid-1980s, there were about 200 ceramic tile machinery manufacturers in Italy, 60% of which were located in Sassuolo area. They compete fiercely with each other for local business opportunities. The price of equipment purchased by ceramic tile manufacturers is usually lower than that of foreign competitors, and the most advanced equipment can be obtained in advance.
With the concentration and cluster formation of ceramic tile industry in Sassuolo area, the professional groups of engineers, production technicians, maintenance workers, service technicians and designers in this industry are also growing. This geographical neutrality encourages the formation of other supporting and related industries, such as molds, glazes, packaging materials and transportation services. Small-scale professional consulting companies also came into being, providing factory design, material management, finance, advertising, marketing and other services for ceramic tile production enterprises.
Throughout the 1960s, Italy was probably the country with the highest per capita consumption of ceramic tiles in the world. Italian ceramic tile market is also the most exquisite and advanced market in the world. Italian consumers will take the lead in using products with new design and new performance, while ceramic tile manufacturers will continue to innovate, improve production methods and introduce new shapes, forming a virtuous circle of two-way interaction.
This unique and exquisite domestic demand feature also extends to the retail field. In 1960s, ceramic tile stores began to appear in Italy. 1985 There are nearly 7,600 such specialty stores, which control nearly 80% of domestic sales, far higher than other countries. 1976, Piemme first introduced ceramic tile products designed by famous designers, aiming at increasing sales channels and establishing brand image in consumers' minds. All these innovations are attributed to Italy's design service industry, which is one of the best in the world, with an annual export volume of more than 654.38+000 billion US dollars.
The turning point of internationalization
The Italian ceramic tile market entered saturation at 1970, and the stagnation of the domestic market forced manufacturers to expand overseas markets more diligently. In the export of ceramic tiles, related and supporting industries have also played a role in fueling the situation. Ceramic tile manufacturers usually advertise in professional architectural magazines at home and abroad, while Italian interior design and decoration magazines have a large number of overseas architects, designers and consumers. The advantages of magazines strengthen the image of Italian tiles. In addition, Italy's marble, building materials, bathroom equipment, lighting, indoor products and other products are world-class, and the image of these industries is conducive to the export of ceramic tile industry.
1980, the Italian ceramic tile industry association established a product promotion base in the United States; The promotion bases in Germany and France were established after 4 years and 7 years respectively. It held trade shows from Bologna, Italy to Miami, USA, and released a large number of exquisite advertisements to promote Italian tiles. During the whole period from 1987 to 1989, the organization spent about 8 million dollars on the promotion of the American market.