Porter’s Diamond Model
The Diamond Model (figure 1) outlines the ‘four broad attributes of a nation that shape the environment, in which local firms compete that promote or impede the creation of competitive advantage’ (Porter, 1998:71). It helps to understand the competitive position of nation in global competition. The four determinants of national advantage are 1) factor conditions, 2) demand conditions, 3) related and supporting industries and 4) firm strategy, structure and rivalry.
FIGURE 1: Porter’s Diamond (Adapted from Porter, 1990)
Factor conditions refers to factors of production; the inputs that are necessary to compete in any industry, these include labor, land, natural resources, capital and infrastruct...
... middle of paper ...
Redding S.G., Competitive Advantage in the Context of Hong Kong, in The Competitive Advantages of Far Eastern Business, edited by Fitzgerald, R. (1994)
Porter, M (1990). The Competitive Advantage of Nations. New York: Palgrave Macmillan.
Rostow, W.W (1960). The Stages of Economic Growth. London: Cambridge University Press.
Rugman, A.M and D'Cruz, J.R. (1993). The "Double Diamond" Model of International Competitiveness: The Canadian Experience. MIR: Management International Review. 33, 17-39.
Van den Bosch. F. (1994). Government's Impact on the Business Environment and Strategic Management. Journal of General Management. 19 (3), 50-59.
Van den Bosch. F, Van Prooijen. A. (1992). The Competitive Advantage of European Nations: The Impact of National Culture - a Missing element in Porter's Analysis. European Management Journal. 10 (2), 173-77.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Does Porter’s ‘Diamond’ concept convincingly explain the achievements of major national business systems, or are their weaknesses, theoretically and empirically, in his arguments. In The Competitive Advantage of Nations, which was published in 1990, Michael Porter – who has dedicated most of his career to studying businesses and how they can develop a competitive advantage (Competitive Strategy, 1985) – the author offers a theoretical framework, which outlines the underlining factors that contribute to national competitiveness.... [tags: diamond concept, government, chance]
2287 words (6.5 pages)
- This study focuses on discussing the criticism of Porter’s model of national competitive advantage. In order to fully discuss the limitations of Porter’s model of national competitive advantage, the determinants in Porter’s diamond model should be explained. Therefore Porter’s diamond model and its elements are analyzed in the first part of the study while rest of the study is explaining the limitations of the Porter’s diamond model that are late development theory, the role of the state, multinational enterprises, foreign direct investment, national competitiveness and history.... [tags: conditions, economy, policy]
1266 words (3.6 pages)
- Introduction Since its publication in 1990, Michael Porter's book The Competitive Advantage of Nations has attracted much consideration. The main analytical tool of the book is the diamond of competitive advantage (figure 1). This model is based on four country specific "determinants" and two external variables. Porter's four determinants and two outside forces interact in a "diamond" of competitive advantage, with the nature of a country's international competitiveness depending upon the type and quality of these interactions.... [tags: Business Economics]
1584 words (4.5 pages)
- What is Porter Diamond Model. It was known as a Diamond Model by anyone or public. The diamond model is one of the economic model developed by Porter's in 1990 in his own entitled. 'The Competitive Advantage' of Nation's, where he published herself on his theory. The theory was founded by Michael Porter's that has been used by certain industries only, where it will be more competitive in some specific location. The theory by Michael Porter is why the particular industries become a more competitive in some particular locations.... [tags: competitive advantage of nations]
1605 words (4.6 pages)
- What Is the Porter Diamond Model . He was recognized as a model by Diamond Anybody or layman . Diamond model is one of the economic model was awakened by Porter in 1990 in the titled itself, ' Excess Competition ' than this nation , in which he published himself in his theory . This theory has been founded by Michael Porter that has been used by certain industries sake only, where it will become more competitive in a particular location. By Michael Porter's theory of why particular industries become more competitive in certain locations.... [tags: business competition theories]
1789 words (5.1 pages)
- The extended economic recession we have been facing in the UK since the 2008 financial crisis, and the rising levels of unemployment here, have raised significant concern about what the government can and should be doing to help revitalize the economy. In this essay I analyse possible solutions to this from the viewpoint of two different economic philosophers, Adam Smith, based on his publication “The Wealth of Nations” and Michael Porter, based on his 1998 Harvard Business Review article “Clusters and The New Economics of Competition”.... [tags: Economic Philosophy, Role of Government]
1810 words (5.2 pages)
- As of June 2009, USAID claimed working relationships with over 3,500 American companies and over 300 private volunteer organizations. In its effort to encourage economic growth and trade, USAID has the following components: a) Business Enabling which helps countries lower the cost and risks of doing business; b) upgrading commercial legal systems – USAID helps reform laws, revise policies; c) improving business regulation- with co-orperation from the World Bank’s “Doing Business” program; d) promotes the development of diverse and healthy institutions in order to help countries build projects and help poor the poor (www.usaid.gov).... [tags: USAID, Partnerships]
1012 words (2.9 pages)
- Analyse the case study with reference to Michael Porter’s Theory of Competitive Advantage and answer the following question: Does America have competitive advantage in the textile and garment industry. Analyse the case study with reference to Michael Porter’s Theory of Competitive Advantage and answer the following question: Does America have competitive advantage in the textile and garment industry. You answer must include the following elements: 1. A clear outline of Porter’s theory with supporting references.... [tags: Business and Management Studies]
2553 words (7.3 pages)
- Companies make decisions all the time. Sometimes if the company is a big one, then the decisions are usually big ones too. One of these large decisions is the choice of if a company should enter into a new business segment or not. There is a very useful theory by Michael Porter who developed the Five Forces Model of Evaluating Business Segments. (Batlzan,Detlor,Welsh 2012) In today’s business top managers need structure when making decisions and this helps, but they also need accurate and up to date information from all parts of the business process.... [tags: buyer power, supplier power]
1205 words (3.4 pages)
- PORTER'S FIVE COMPETITIVE FORCESMethodology 4 Because the subject matter of strategic management is so inherently complex and because each one of us brings his own personal biases to the analysis, it was suggested early on that virtually all case material in the field be analyzed from the perspective of more than one methodology. Profit theory and industrial chains were selected as the first of a number of viable approaches to the analytical process. It would have been equally correct to select the Five Competitive Forces analysis refined by Michael Porter, one of the major figures in the field of strategic management.... [tags: essays research papers]
502 words (1.4 pages)