The Diamond Model which has been penned down by Michael Porter
...Porter's 'diamond' of National Competitive Advantage. How might the four attributes impact upon the content of National Policy>
The Diamond Model which has been penned down by Michael Porter is a very effective model when it comes to studying the topic of competitive advantage of nations. This world is fast becoming a global village, and thus the interdependency between nations is increasing day by day. If a nation is good at producing a single commodity, other nations will not waste their time by using their own resources to make that product. Rather, they would prefer... for that commodity and it even gives the nation the power to dictate prices at times, especially if there is scarcity of that commodity or the raw materials needed to make that commodity in other parts of the world, or if the commodity is a staple good or a fast moving consumer good.
Thus, competition, in today's age, is not limited to domestic competitors. Rather, the competitors are now present worldwide for a single industry. Thus, Porter's model becomes the most comprehensive model available for this purpose only - to help nations make policies which will help them out beat their international competitors.
Michael Porter's model discusses four factors which must be studied if nations have to compete... ...