An evaluation of porters diamond as a means of explaining why some countries and industries have competitive advantage over others.

As internationalisation of the world economy continues to gather pace all aspects of management have to be seen in a global context. This is especially true for corporate strategy. Even if an organization does not plan to import or to export directly, management has to look at the international business environment, as it will inevitably have an affect on their business activities. They have to consider how the actions of competitors, buyers, sellers, new entrants …

…stared to transform markets. Nevertheless, that does not mean that it has become invalid. It is necessary to apply it with the knowledge that like any other theory limitations exist and the diamond should be used as a part of a larger framework of management tools, techniques and theories. This approach, however, is advisable for the application of every business model - brand-new or old, from Porter or from somebody else, and in every economy.