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- The Porter Diamond Model consists of four main determinants that shape the competitive advantage of a nation1:
- Factor conditions: These include a nation's resources, skills, and infrastructure.
- Demand conditions: The nature of domestic demand influences innovation and competitiveness.
- Related and supporting industries: The presence of strong related industries and suppliers contributes to competitiveness.
- Firm strategy, structure, and rivalry: Intense competition within a nation drives firms to improve and innovate12.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.The model consists of four main determinants that shape the competitive advantage of a nation: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Example Let’s consider the automobile manufacturing industry in Germany as an example to illustrate the Porter Diamond.quickonomics.com/terms/porter-diamond/To give an example: BMW, Mercedes-Benz and Audi would not be such successful brands if they did not have to compete against each other. Constant pressure from competition makes them develop competitive products, offer them at competitive prices and stay competitive on the whole.eightception.com/porter-diamond-model/The German luxury car manufacturing industry is a good example of Porter’s Diamond Model.parsadi.com/porter-diamond-model/ - People also ask
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