Skip to main content

Factors that entrepreneurs should consider before investing in foreign nations.

Image courtesy of suphakit73 at

This article can add value to government officials for the purpose of attracting foreign investments, however, I will be focusing on entrepreneurs. The Porter's Diamond model will be used to let you know what factors to consider when you want to open a branch of your business in another country. According to this model, there are four factors which are:

- The Factor Conditions
- Firm Strategy, Structure and Rilvary
- Related and Supporting Industries
- The Demand Conditions

The Factor Conditions
This relates to the nature of the country, as such you must consider the natural resources of the country, the availability of cheaper labour, the availability of lowly skilled staff as well as a well educated work force. That way you can be sure that a percentage of the population possess the skills required to execute the tasks needed for the achievement of your business goals. The weather condition, the security in the country , the infrastructures of the country (such as good roads, constant power supply) are amongst all the factors you must consider.

Firm Strategy, Structure and Rilvary.
The way in which businesses are developed and managed in a country should influence your decision as a foreigners to invest in the country. The structure and style of management should influence your decision as well. The level of competition must also influence your decision.

Related and Supporting Industries
Within that country, there has to be a set of strong related and supporting industries for the industry your business falls into. That way, you will be sure your industry can get the adequate support needed. A related industry uses the same skills as yours to execute business tasks. The existence  of supporting industries makes companies competitive.

Demand Condition
The decision to open a branch of your company in another country should also be influenced by the market size for the goods and services you produce. That is there is a huge market for your products in that country.

Keep checking out my blog regularly. Cheers


Popular posts from this blog

Work-life balance: all should attain it

Hello readers, today I will be writing about work-life balance. According to, work-life balance "is a comfortable state of equilibrium achieved between an employee's primary priorities of their employment position and their private lifestyle." All work and no play makes Jack a dull boy, thus, you should find a balance between work and play. Here are some tips to help you achieve it.
1. Do not check your email (work) after working hours, this will help improve the quality of time you spend with your family and friends. Thus, you should not be distracted by work when spending time with your family and friends. 
2. When you decide to improve the situation of your work life balance, take it one step at a time. For example if you do not get to spend time in the evenings with your family during the week days due to coming back late from work, you should decide to spend one day a week and gradually increase it to two and then three till you get to spend the…

Eid Mubarak

The world of competence

Hello readers, it has been a while. Hope you did not miss me much, the good news is I am back now. Today, I will be writing about competence.
Competence is the ability that enables a company or an individual to deploy its resources effectively. It is neccessary for a company to have a competence target in all its business activities so as to deliver value to its customers. This will help create a competitive advantage for the company.
Competencies must provide value to customers. It must be unique or able to develop greatly or be better than that of competitors. New products and services must be able to be developed as a result of the competence. It must be difficult for other competitors to obtain or imitate.
Continually producing high quality products can make a company become a market leader (which is a core competence) as it provides a company with a competitive advantage. With high quality, higher prices can be demanded by the company from customers and the company will also be able…