Porter’s “Diamond Model” of Competitive Advantage
The diamond model is an economical model developed by Michael Porter in his book The Competitive Advantage of Nations (Porter, 1990), where he published his theory of why particular industries become competitive in particular locations. Porter's diamond model suggests that there are inherent reasons why some nations, and industries within nations, are more competitive than others on a global scale. The argument is that the national home base of an organization provides organizations with specific factors, which will potentially create competitive advantages on a global scale.