Poter's diamond model

In his book, The Competitive Advantage of Nations, 1990. Michael Porter argues that there are inherent reasons why some nations are more competitive than others; and why some industries within nations more competitive than others. The framework he uses for this has become known as 'Porter's diamond' (See Figure). Porter used it to illustrate the determinants of national competitive advantage. Porter argues that the strategy of companies that have gain competitive advantage against the world best …

…for example, good miniaturised components since there is less space in Japan. ·<Tab/>Domestic rivalry in this industry pushed innovation and resulted in rapid cost reductions. ·<Tab/>Government support Porter's diamond model is very useful in explaining how and why a nation has competitive advantage in particular industry. The framework of porter's diamond is very useful to understanding the international competitiveness.