ABSTRACT
This chapter contains Michael Porter's Diamond model; the principles on which it is based; underlying assumptions; guidance on application, and relevant issues; and related models. The model shows how a nation's international success within a specified industry depends upon four specific attributes which promote or impede competitive advantage. The four specific attributes are factor conditions; demand conditions; related and supporting industries; and strategy, structure, and rivalry. The model may be applied to individual industries, organizations or business units in order to audit strength of the four attributes and so assess competitive advantage. The competitive environment of an industry within which organizations operate is influenced by four attributes which determine the competitive advantage of the nation for that industry. Understanding of the model can encourage the formation of strategic alliances between organizations to improve the state of 'related and supporting industries'.
