Michael Eugene Porter is an American academic known for his theories on economics, business strategy, and social causes. He is credited for creating great works, Porter’s Five Forces Analysis, Competitive Strategy, National Diamond and Value Chain.
Slide 1, Michael Porter’s Diamond model
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Slide 2, Classical Michael Porter’s Diamond model
Factor conditions (endowments), Factor endowment can be categorized into two forms:
- “Home-grown” resources/highly specialized resources
- Natural endowments
Related and supporting industries
For many firms, the presence of related and supporting industries is of critical importance to the growth of that particular industry.
Demand conditions in the domestic market provide the primary driver of growth, innovation and quality improvement. The premise is that a strong domestic market stimulates the firm from being a startup to a slightly expanded and bigger organization.
Strategy, structure and rivalry
National performance in particular sectors is inevitably related to the strategies and the structure of the firms in that sector.
The role of government
The role of government in Porter’s Diamond Model is “acting as a catalyst and challenger; it is to encourage – or even push – companies to raise their aspirations and move to higher levels of competitive performance …” .
The role of chance basically denotes the idea that it may occur that many times a product or an enterprise may get an opportunity to maximize its benefits out of sheer luck.
Slide 3, Classical Michael Porter’s Diamond model
For detailed info on it, please refer to Wikipedia.
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