Porter's Diamond Model

Porter's Diamond Model explains why certain countries excel in particular industries. It identifies four interconnected factors: factor conditions (like skills and resources), demand conditions (home market needs), related and supporting industries (suppliers and partners), and firm strategy, structure, and rivalry (business environment and competition). These elements create a favorable environment that encourages companies to innovate and compete globally. Additionally, chance events and government policies can influence these factors. Ultimately, the model shows how these internal and external factors combine to give a nation a competitive advantage in specific industries.