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- The Porter Diamond Model identifies four main determinants that shape the competitive advantage of a nation12:
- Factor conditions: These include a country's resources, infrastructure, and skilled labor.
- Demand conditions: The level of demand for products or services within a country.
- Related and supporting industries: The presence of complementary industries that support a particular sector.
- Firm strategy, structure, and rivalry: The competitive environment and how companies operate within it.
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/Key Takeaways
- The four factors contributing to competitive advantage in an industry are firm strategy, structure, and rivalry; related and supporting industries; factor conditions; and demand conditions.
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Factor conditions in a certain country refer to the natural, capital and human resources available. Some countries are for example very rich in natural resources such as oil for example (Saudi Arabia). This explains why Saudi Arabia is one of the largest exporters … See more
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