What is the Porter Diamond?
The template does more than just demonstrate the Porter Diamond. It is a model that helps visualize the competitive advantages that groups, organizations, or nations possess based on their resources. It also demonstrates how governments can become catalysts to improve their country’s outlook in the competitive global economic environment.
Created by Michael Porter, founder of Harvard Business School’s Institute for Strategy and Competitiveness, it is a theory of economics that is proactive by nature and avoids the listing of advantages as typical of most evaluations of this type.
How It Works
The Porter Diamond offers a different perspective compared to standard global economic statistics or factors that represent the resources available to a country. Instead of listing the natural resources, location, population, and the land itself as what makes a country competitive in the global environment, the Porter Diamond instead considers how countries can create advantages that include the following factors;
- Government Economic Support
- Skilled Labor and More
In other words, how the government of the country supports its citizens plays a powerful role in how it can compete with neighboring countries and around the world.
The Four Points of the Diamond
The visual representation of the Porter Diamond Template consists of four points that feature the determinants of where the competitiveness of the country can be found on a global scale.
- Structure & Rivalry
- Supporting Industries
- Firm Strategy
- Factor & Demand Conditions
The template successfully demonstrates the Porter Diamond in a manner that is easy to understand for you and your audience.