The Diamond Model By Michael Porter

1452 words - 6 pages

Michael Porter developed Porter’s Diamond, also known as The Diamond Model, in 1990 in his book ‘The Competitive Advantage of Nations’. The four determinants of Porter’s diamond must operate as a system rather than individually. It provides the answers to ‘Why does nation achieve international success in a particular industry?’ (Porter, 1998:71). Despite the universal application of Porter’s diamond framework, many critics argued that the model is flawed. This essay aims to discuss the different critiques drawn to the diamond network. Firstly, an overview of Porter’s Diamond model will be entailed. Thereafter, focus will be on the many criticisms of the model. For example, many criticized the lack of consideration of the influence of the government and the role of chance in the nation. Some also critique on the inaptness of the framework to small economies, while others comment on the lack of historical perspective of the framework and lastly, the neglecting of national culture in the framework.
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 infrastructure (Porter, 1998). One nation’s endowment of factors plays an important role in the competitive advantage of the nation. A firm can gain competitive advantage if they can gain access to and retain low-cost or relatively high quality of factors of production in one particular industry (Porter, 1998). He also states that these factors can be upgraded or deployed over time to meet the nation’s demands. For example, Switzerland is a multicultural country, containing French, Italian, and German speaking regions; it has the advantage with the ability to deal with investors from different countries, which is particularly useful in banking and trading industries. Demand conditions are the nature of home demand of the nation for the industry’s product or service. Porter outlined three important attributes of demand conditions: the composition of home demand, the size and pattern of growth of home demand, and the mechanisms by which a nation’s domestic preferences are transmitted to foreign markets. Porter also argues that the quality of home demand conditions is far more important than the quantity of home demand conditions. However, demand condition cannot be assessed alone; it is also dependent on other determinants of the...

Find Another Essay On The Diamond Model by Michael Porter

The Jilting of Granny Weatherall by Catherine Ann Porter

1179 words - 5 pages In The Jilting of Granny Weatherall, Catherine Ann Porter shares the story of an eighty year old woman who has lived a long life filled with personal triumphs and tragedies. Having been left at the altar by the love of her life at a young age, Ellen “Granny” Weatherall, whose name appropriately represents her character, learned to put up walls of protection around herself and her family early in life lest she fall to the same hurt once again

The Omnivore’s Dilemma by Michael Pollan

2165 words - 9 pages The Fresh Model of America In the Omnivore’s Dilemma, Michael Pollan talks about 4 different models that we consume, purchase, and add it to our daily lives. Michael Pollan travels to different locations around the United States, where he mentions his models which are fast food, industrial organic, beyond organic, and hunting. I believe that the 3 important models that we need to feed the population are fast food, industrial organic, and

The Road to Woodstock by Michael Lang

1065 words - 5 pages Woodstock: Three Days of Peace and Music The Road to Woodstock is the novel written by Michael Lang. Michael Lang was known as the man behind the legendary festival. Lang paints a vivid picture of how Woodstock changed America forever. He takes you through the hard work, dedication, passion, and struggles of creating the country’s most powerful music and peace festival in history. Michael Lang grew up in New York in the early fifties. He came

The Killer Angels by Michael Shaara

651 words - 3 pages When people think about the Civil War, many people think about the conflict between slavery, yet not often is it that the reader will take into consideration the men who actually fought the war. For the Union soldiers, it was a war fought for freedom of all men, while on the other hand, for the Confederate soldier it was a war fought to preserve their way of life. Regardless of the outcome of the Civil War, Michael Shaara gives a

The Killer Angels By Michael Sharra

829 words - 3 pages The Killer Angels by Michael Sharra The Killer Angels by Michael Sharra tells about the Battle of Gettysburg that took place in the Civil War. The Confederate Army of Northern Virginia was invading the North on July of 1863. The Battle of Gettysburg is depicted through the perspectives of General Robert E. Lee who made a daring move with seventy thousand men in an effort to draw out the Union Army of the Potomac and has hurt it severely

The Search For Cleopatra by Michael Foss

1212 words - 5 pages Search For Cleopatra, Michael Foss tells the story of Cleopatra VII. He tells us about her remarkable legacy from hundreds of years before she was born all the way to her death, as well as, the historical circumstances surrounding her life. Foss begins the book with a historical explanation of the hard work and uncertainty that naturally comes with finding more about the past. In the following chapters he splits the book into four important and

"The Killer Angels" by Michael Shaara

745 words - 3 pages The Killer Angels, by Michael Shaara, tells the story of the historic Battle of Gettysburg. On July 1, 1863, the Confederate army and the Union army fought the largest and most gruesome battle of the American Civil War. Shaara states that he wrote the book because he wanted to know "what it was like to be there, what the weather was like, what the men's faces looked like." Between the days of July 1, 1863 and July 4, 1863, the Civil War's

Running in the Family, by Michael Ondaatje

1192 words - 5 pages Ondaatje’s “running in the family” is an elaborate representation of the author’s unique perspective and identity. Ondaatje’s identity is represented by his unique desire to present his memories in irrational and imaginary themes, and his argue to represent the natural characteristics of his ancestors. “Running in the family,” is a fictionalized memoir, written by Michael Ondaaji. Michael Ondaatje is a writer from a Ceylonese origin

"The Killer Angels" by Michael Shaara

2536 words - 10 pages of others did not interest Lee and he felt compassion for the Union. Lee had contradictory feelings towards war and says, "He was not only to serve in it but he was to lead it, to make the plans, and issue the orders to kill and burn and ruin...he could not do that" (Shaara 263). The Civil War was not in the taste of General Lee, felt it was his duty, and he could not just stand by and watch the war pass him by. Michael Shaara says of Lee's

The Killer Angels by Michael Shaara

1392 words - 6 pages In a letter to the reader, Michael Shaara states that his purpose is similar to Stephen Crane's in The Red Badge of Courage. He wishes to display history not as cold facts, but rather in such a way that the reader can live the history. This is to be accomplished through extensive detail of the emotions of the men, the atmosphere of the battle, and strategies of the commanding officers. Accepting this as Shaara's intent, it can be justifiably

The Killer Angels by Michael Shaara

1175 words - 5 pages The killer angels is a world acclaimed novel that was written by an author known as Michael Shaara. In the year 1975, it was granted the Pulitzer Prize for creative writing. It gives us in details the occurrences of the four days in the Battle of Gettysburg. This was during the American Civil War that occurred in the year 1863. At this time, troops that comprised of both the Union and Confederacy were at war in town called Gettysburg in

Similar Essays

The Five Forces Model Of Evaluating Business Segments By Michael Porter

1411 words - 6 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

Management: T He Porter Five Forces Model

962 words - 4 pages In my opinion, I think that the Porter five forces model is still relevant in today’s competitive environment. It is because porter’s five forces can give the managers in the corporate to analyse the current situation of their industry in a structured and understand easily way (Porter 2001). Based on the strategic management view, it is good for managers of any organization in the similar industry or sectors to understand the

Canonical Model In The New Testament Books By Michael J. Kruge

1283 words - 6 pages brick and mortar school with the added convenience of online courses. Content Summary The book entitled Canon Revisited: Establishing the Origins and Authority of the New Testament Books written by Michael J. Kruger explains the canonical model by which the books of the New Testament were selected as the right word of God. The correctness of the canon has always troubled Christians; they have always wanted to know that the twenty-seven books of

"The Hours" By Michael Cunningham Essay

888 words - 4 pages the screen, as inspired by Michael Cunningham's 1998 novel, The Hours, which was in turn inspired by Virginia Woolf's Mrs. Dalloway.The film opens with Virginia Woolf's 1941 suicide. She places stones in her pockets and wades calmly into the river, letting the rushing water engulf her fragile body and battered soul. Eighteen years earlier, she is already struggling with her sanity. She hears voices. She succumbs to "moods." And she writes