Porter’s Diamond

Porter’s Diamond is a framework that explains why some countries or regions excel in certain industries. It identifies four key factors: (1) factor conditions, such as skilled labor or infrastructure; (2) demand conditions, meaning the strength of local customers demanding high-quality products; (3) related and supporting industries, like suppliers or partners that boost competitiveness; and (4) firm strategy, structure, and rivalry, which influence how companies compete and innovate. Together, these elements create a conducive environment that encourages innovation, efficiency, and global success in specific industries.