In his book ‘The Competitive Advantages of Nations’, Porter (1990) developed a diamond model to examine
the reasons for the success of an industry in a specific region (country) in comparison to other regions
(countries).
The model can be used to explain why some companies that emerge from certain countries or regions are
globally competitive.
The model is made up of several factors that together, make up the national environment in which companies
are established and learn to compete globally. These factors can support organisations’ search for
competitiveness.
In this model, the regional (country) advantages can be assessed by four factors including:
1. Firm Strategy and Rivalry
2. Demand Conditions
3. Related and Supporting Industries
4. Factor Input Conditions.
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The roles of the Government and Chance
Governments can help or hinder a country or region by providing a supportive business environment.
The role chance plays in re-shaping industries is significantly evident as the global economy responds to the
ongoing pandemic.
You are required to select a multinational company familiar to you and using Porter’s Diamond Model, critically
discuss how the model can be used to explain your organisation’s global success.