The Porter Diamond Theory Of National Advantage

1000 Words4 Pages
“The Porter Diamond, properly referred to as The Porter Diamond Theory of National Advantage, is a model that is designed to help understand the competitive advantage nations or groups possess due to certain factors available to them and to explain how governments can act as catalysts to improve a country’s position in a globally competitive economic environment.”[1] (Investopedia, 2016) The diamond is made up of four critical ingredients namely – factor conditions, demand conditions, related and supporting industries and lastly firm strategy, structure and rivalry. Each of these attributes has a profound impact on a nation’s ability to achieve competitiveness. In Kuwait the most important factors of production include labour, land, capital, natural resources and infrastructure. Kuwait being a deserted country has abundant land available for both commercial as well as residential purposes for instance areas such as Eqaila, Al –Siddeeq, Khiran and many more are being developed to boost the national economy through rent and commercial activities. Similarly, labour also plays an essential element in achieving national advantage. Over the years the availability of highly skilled labour has enabled Kuwait to construct the most sophisticated buildings, towers, commercial centers etc. This in turn has attracted a lot of foreign tourists which has boosted Kuwait’s economy and enabled it to achieve competitive advantage. Kuwait is the second richest country
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