Porter's Diamond Theory - E3 Strategic Management from Learn CIMA

INVESTOPEDIA EXPLAINS 'PORTER DIAMOND '

Traditional economic theories cite land, location, natural resources, labor and population as determinants in competitive advantage. The Diamond Model uses a more proactive approach in considering factors such as:


-The firm strategy, structure and rivalry
-Demand conditions for products
-Related supporting industries
-Factor conditions


The Diamond Model demonstrates that countries can become competitive regardless of whether they possess natural factor endowments such as land and natural resources. In the Diamond Model, the role of government is to encourage and push organizations and companies to a more competitive level, thereby increasing performance and ultimately the total combined benefit.

Courtesy - http://www.investopedia.com/terms/p/porter-diamond.asp



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