NPD Jargon Buster: Porter's Diamond Model

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Porter's Diamond Model is a framework for identifying the factors that contribute to the competitive advantage of a nation or region.

Porter's Diamond Model is a framework for identifying the factors that contribute to the competitive advantage of a nation or region. Porter's Diamond Model is a framework for identifying the factors that contribute to the competitive advantage of a nation or region.

Porter's Diamond Model is a framework for identifying the factors that contribute to the competitive advantage of a nation or region. The model was developed by Michael Porter, a professor at Harvard Business School. The model is based on the concept of "factor endowments" - the resources, technology, and skilled labour that are available in a given location. Porter's Diamond Model is often used by businesses to assess the attractiveness of a particular market. The model can also be applied to other factors, such as infrastructure or institutions

Porter's Diamond Model has four main components

1. Factor Conditions: This refers to the natural resources, technology, and skilled labour that are available in a given location

2. Demand Conditions: This refers to the presence of buyers in a given market who are willing and able to purchase the product or service being offered

3. Related and Supporting Industries: This refers to the presence of supplier industries and other industries that provide supporting services

4. Firm Structure, Strategy, and Rivalry: This refers to the characteristics of firms operating in a given market, including their size, ownership structure, and level of competition.

Key Takeways

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