Competitive Advantage of Nations

Michael Porter’s Diamond Model explains why certain industries in specific nations are more competitive than others.

• Factor Conditions: Skilled labor, infrastructure, natural resources.
• Demand Conditions: Nature of home-market demand for the industry’s product.
• Related and Supporting Industries: Presence of supplier industries that are internationally competitive.
• Firm Strategy, Structure, and Rivalry: The conditions in the nation governing how companies are created, organized, and managed.