National Diamond

DEFINITION of 'National Diamond'

A theory of competitive advantage developed by HarvardBusinessSchool professor Michael E. Porter that is represented visually using a diamond-shaped graphic. The graphic can be used to show the factors that make up an industrialized country's competitive advantage in the global marketplace or the factors that make up a company's competitive advantage within a single country.

BREAKING DOWN 'National Diamond'

Porter, an expert on economic competitiveness, divides the factors of competitive advantage into four categories, placing one at each point of the diamond. The four categories are firm strategy, structure and rivalry; factor conditions; related and supporting industries; and demand conditions. His model also recognizes the impact of the institutional environment on competitiveness.



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RELATED FAQS
  1. Who uses Porter's 5 forces analysis?

    Find out how the Porter's five forces analysis helps financial decision makers in a company stay profitable and competitive. ... Read Answer >>
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    Find out what happens when a country intentionally focuses solely on its most competitive factors of production or industries ... Read Answer >>
  3. How do I determine my company's competitive advantage?

    Find out how to determine if your company has a competitive advantage and, if so, learn how to figure out how to make it ... Read Answer >>
  4. What is the difference between CI (competitive intelligence) and competitive analysis?

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  5. Is it possible for a country to have a comparative advantage in everything?

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