Small countries have a relatively weak diamond of competitive advantages
(Vlahinić-Dizdarević; 2006). According to Porter (1998) the analysis of
competitive forces or advantages should be directed towards the key factors of
the competition and the analysis of its impact on the company. Porter’ s
diamond model (Picture 1.) offers a holistic and flexible concept which enables
all interest groups in some country the analysis of competition in all its
complexity, and constructive communication about surroundings improvement
with an aim to improve competitiveness. The national, as well as local
prosperity is not inherited – it has to be created (Porter; 1998, p.155).