In Porter's national diamond Porter emphasizes that rivalry:
A)Is crucial: cooperation and the growth of complementary services require lots of friendly rivals
B)Is crucial: intense domestic competition drives innovation, efficiency and the growth of firms' individual competitive advantages
C)Must be killed, in order to create national champions
D)Is less important than having a good strategy and structure

Question

Quizplus · Accepted Answer

In Porter's national diamond, rivalry is seen as crucial because it drives innovation, efficiency and the growth of firms' individual competitive advantages. Intense domestic competition can lead to firms developing unique strengths that can be leveraged on a global scale. Additionally, friendly rivals can cooperate and develop complementary services, further enhancing the competitiveness of the nation's firms. Therefore, option B is the correct answer.

In Porter's National Diamond Porter Emphasizes That Rivalry