May 8, 2012

Porter's Diamond



Factor of production
Shenzhen is located in China's economic developed Pearl River Delta, adjacent to Hong Kong, high-tech industries, financial services, foreign trade and exports, maritime transport developed, Occupy a pivotal position in the Chinese mainland economy. It has 10 million of people can supply the needs of the manufacture market. Such as Foxconn, which has hundreds thousands of employees in Shenzhen. Owing to Foxconn’s high efficiency production in Shenzhen, many high-tech company like Google, IBM, Samsung, Microsoft, Apple etc. they would like to ask Foxconn produces product for them, such as the Iphone we are using. After Foxconn produced, those companies can directly export to other countries (Yantian, Chiwan, Shekou maritime ports of Shenzhen, Shenzhen Total Berth 176-ton container berths 69 and 44, respectively, as of the end of 2010 ). Owing to most of huge high-tech enterprises consider Shenzhen as a world class manufacture, most of product will export to different places in the world.

Supportive industry
In order to improve the infrastructure, Shenzhen government invests around 1billion RMB to construct 10 infrastructures. It has BaoAn international airport which has been operated 35 domestic and oversee companies and 130 airlines. It also has world class ports like Yantian, Chiwan, Shekou etc for supporting export industry. Guangzhou-Shenzhen Railway and Beijing-Kowloon Railway is an important railway lines in Shenzhen, Guangzhou-Shenzhen Railway in Guangzhou and Beijing-Guangzhou line, the main artery of the Chinese railway access. Shenzhen has many highways and MTR to let people and goods to be more convenient.

Firm strategy, structure and Rivalry
In order to compete with the competitors ( Hong Kong & Guangzhou ) around it. It keeps it strength of high-tech industry development and export, also it has stock market which can compete with HongKong’s.

Demand condition
Nowadays, people like to look for convenient, beautiful, creatable new product, especially in the high-tech market. As the result, Shenzhen will get plenty of orders from the companies every day. 


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