Competitive Advantage Based On Diamond Theory: Development Of China Shipbuilding Industry

China shipbuilding industry started to enter the international market in late 1970s. The annual building capacity is increasing year by year. As shipbuilding is developed, ship building capability is also increasing. However, compared with the internationally advanced shipbuilding countries, particularly Japan and Korea, China shipbuilding is still at a developing stage.The purpose of this thesis is to propose scientific development policies and strategies for China shipbuilding industry through the study of competitive advantages and disadvantages of the industry.Porter's introduction of Diamond Model has made great contribution to the study of competitiveness theory. His method of analysis breaks through those of various comparative advantage theories, and provides a new theoretic model of analysis for future researchers.The thesis uses Michael E. Porter's'Diamond Theory'of the theory of national competitive advantage as its research tool.In the first part it reviews Porter's theory including the basic concepts, structure and model. Then, it sums up the development of the Diamond Model from the following diamonds model: Multiple Linked Diamond Model of Wayne R. Cartwright, International Diamond Model of Dunning, Double Diamond Model of Rugman, Rugman&Cruz, The Generalized Double Diamond Model of Moon, Rugman&Verbeke, The Nine-Factor Model of Cho D. Sung.Then, it studies the unique and great status of the shipbuilding industry in the whole national economy and the course of Chinese industrialization. It analyzes three aspects: the shipbuilding industry output in GDP, the shipbuilding industry in the national manufacturing and the shipbuilding industry in the oceanic economy. Also it describes the brief development situation of the shipbuilding industry through the recent data and statistics.The third part goes from the national competitive advantage theory and uses Diamond Model and its developments to analyze the competitive advantages of China shipbuilding industry: the compatibility relations between the sophisticated and common technology at the Factor Conditions aspect, sustainable increasing demand at the Demand Conditions aspect and widening development area at the Chance aspect.The fourth part goes on using the national competitive advantage theory to analyze the disadvantages of China shipbuilding industry: laggard scientific and technologic level and innovation ability at the Factor Conditions aspect, laggard ship-related products industry at the Related and Supporting Industries aspect, laggard management level and the slow transformation towards modern shipbuilding model at the Firm Strategy, Structure, and Rivalry aspect and low industry concentricity and unsuitable company scale structure at the Firm Strategy, Structure, and Rivalry aspect.In the last part, according to the studies before, aiming at the disadvantages and problems pointed out, the thesis follows the logic of the national competitive advantage theory. It proposes four suggestions from aspects of the Factor Conditions, e Related and Supporting Industries and the Firm Strategy, Structure, and Rivalry as the conclusion.Based on the development situation of China shipbuilding industry, using the national competitive advantage theory as analysis tool, the thesis systematically studies the competitive advantages and disadvantages of China shipbuilding industry. The development policies and strategies proposed on the study is comparatively pertinent and exercisable.As a strategic industry upgrading industrial structure of nation and component of national economy, the development strategy of China shipbuilding industry has been concerning the government, industry and academe for years. Many comments have been raised. What innovated in this thesis is using the tool of the national competitive advantage theory-mainly Diamond Theory-to study China shipbuilding industry. Also it studies the relationship between shipbuilding industry and the national economy comprehensively and comments on the oceanic economy which was seldom mentioned before.