Diamond Model Advantages And Disadvantages

There are numerous valuable and beneficial models for the external environment inquiry of particular states in the international business theory. Such approaches may be employed by the firms, which endeavour to internationalise and to determine proper emplacements overseas regarding institutional as well as cultural adaptation and beneficial possibilities. Diamond Model introduced by Michael Porter in 1990 is considered to be one of such approaches. The essay will define the advantages and disadvantages of Porter’s Diamond Model as an implement for the inquiry of company’s home and host location judgements by concentrating on two main multinational enterprises: French hypermarket chain Carrefour and British retailer Marks & Spencer.

The Diamond Model developed by Porter (1990, p. 73) debates that “nation’s competitiveness depends on the capacity of its industry to innovate and upgrade”. Thus, it is defined by a country’s efficiency and capacity level. From an organisational perspective, it stands for the fact that state’s emulative superiority relies on its capacity to equip a home foundation for firms in order to continuously enhance their manufactures and accommodations with regard to calibre, characteristics, and processings. This will help to be emulous of extremely procreant industries at the international level. Therefore, the superiority of the model defines four crucial interconnected agents, which originate and depict the fundamental state surroundings where firms