Porter’s National Diamond – Competitive Advantage of Nations!!!Kapil
Porter has an amazing ability to explain complex phenomena in a crystal clear way. The National Diamond framework frames the attributes which explain the competitive advantage of Nations :
1. Factor Conditions. The nation’s position in fac- tors of production, such as skilled labor or infra- structure, necessary to compete in a given industry.
2. Demand Conditions. The nature of home-mar- ket demand for the industry’s product or service.
3. Related and Supporting Industries. The pres- ence or absence in the nation of supplier indus- tries and other related industries that are internationally competitive.
4. Firm Strategy, Structure, and Rivalry. The conditions in the nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry.