Michael Porter's Diamond Model

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In the mid-1980s, Professor Michael Porter developed a framework to assess the competitiveness of regions, states and nations. This framework called “the Diamond model”. The diamond is a model for classifying multiple dimensions of micro-economic competitiveness in nations, states, or other locations, and be aware of how they interact. The Diamond model involves four elements which are: factor condition, demand condition, related, supporting industries, and strategy, structure and rivalry of the firm. The elements in the diamond that are barriers to productivity, can improve competitiveness. The diamond model can help in solving the issues. Rising unemployment among the locals becomes an issue. So, …show more content…

In order to get over this problem, the Firm strategy, structure, and rivalry should be understood. On the one hand, Strategy refers to Company goals that reflect the characteristics of national capital markets and the compensation practices for managers. So these small businesses should have strategy and goals in order to exist. On the other hand, Structure refers to national circumstances and context generates strong tendencies in how companies are created, organized, and managed. For these small businesses to stand in the market, they have to make a clear way of how the business is run. The last element that helps these small businesses to continue in the market is the local rivals. Local rivals push each other to lower costs, improve quality and service, and generate new products and processes. Porter claims that domestic rivalry and the search for competitive advantage within a nation can help offer organizations with bases for accomplishing such advantage on a more global scale. For example Juhayna has strategy which is dedicated to providing high-quality, healthy, and safe products to its consumers. Juhayna has structure. At Juhayna, their commitment to their people goes beyond the operational structure that ensures they have access to state-of-the-art facilities to help them emerge as industry leaders with unparalleled knowledge and insight of the food processing and …show more content…

Coca-Cola uses those nine elements. They have their existence in any country. Coca-Cola has faith in innovation which they think that is something new that creates value and they have believe that innovation is not a function or a department, but rather an approach that is embraced across their entire company. Coca-Cola is working to execute and maintain programs that aid assure their success in including the similarities and differences of people, cultures and ideas. Coca-Cola tends to make best of opportunities based on their skills. Coca-Cola makes their decisions based on present, future, and ambition not on past. Coca-Cola Egypt launched a campaign aiming to encouraging internal tourism which would affect the economic growth of the country and the development of tourism field. Those nine elements have been a base and a helper to achieve the campaign

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