Michael Porter’s Diamond Model, which is also popularly known as the Theory of National Competitive Advantage of Industries is a strategic tool used by companies for determining and developing the basis of competitive advantage needed for international growth and expansion.

Toyota Five Forces analysis (Porter’s model) of competition, buyer power, supplier power, substitutes, new entry threat in the automotive business.

Michael Porter’s Diamond Model (also known as the Theory of National Competitive Advantage of Industries) is a diamond-shaped framework that focuses on explaining why certain industries within a particular nation are competitive internationally, whereas others might not.

Toyota Motors faces the major effects of external forces of the industry, as determined in the Porter’s five forces model. These five external factors help Toyota in analyzing the strategic directions for the company.

This article explores and analyzes the industry and competitive positions of Toyota using the Five Forces Model of Michael E. Porter. An Analysis of Toyota Based on Porter’s Five Forces Framework: Understanding Its Industry and Competitive Positions. 1. Industry or Competitive Rivalry.