Application Of Diamond Model

Industrial analysis has been regarded as a more and more important job by enterprises and government. To enterprises, industrial analysis is a fundamental job for making investment decisions and company's strategy; to the government, it can provide detailed information for macro-economical management. This dissertation is going to make a deep analysis of the status of the industrial competitive advantage of china's ship industry under the frame of Diamond Model theory.Ship industry is a capital-technology-and-labor-intensive industry, which has remarkable pulling effect for promoting the industrial structure. By analyzing the internal reasons of the status of competitive advantage, we can try to build a satisfactory environment for ship industry's smooth development, so as to make contributions for our country's industrialization. The result of the paper is that, china has much strong advantages on domestic demand and common labor forces; the intra-industry division is coming to shape, and the financial environment, exchange rate system reform and intermediate association are marching towards good directions. But the technological disadvantage on ship equipments, design and building has become a main encumbrance for china to be one of the strongest but not the biggest ship-building country.The innovations of this dissertation:1. Make a deep analysis of the status of china's ship industry's competitive advantage by using Diamond Model and refine the factor collection for analyzing ship industry.2. Find that domestic demand is a double-edged sword. If domestic demand can be fulfilled domestically, it is good for our industry. If not, it might make foreign companies stronger than ours.3. Find that the Diamond Model is hard to be quantified, and hard to provide operational solutions.