ACCA SBL Syllabus C. Strategy - Porters Diamond - Notes ^{4 / 5}

This framework is particularly important in GLOBAL competition contexts

This model suggests there are inherent reasons why some nations & some industries are more competitive than others

For firm strategy it also includes:

Local rivalry can really push the industry in that nation

“High status” industries eg Investment banking in UK can lead to a competitive advantage

National Level
Encouragement of competition by governments, rather than being protected from outside competition
Governments trying to foster high standards amongst its population
Organisational Level
Building on their countries advantages eg Benetton in Italy

Be careful of companies who do well locally - due to the local conditions - this may well not transfer abroad if that is the strategy
Also, if you are a company competing in an industry which has no local advantages, be careful of competitors growing in countries where they have a natural advantage
The examiner will make it quite clear when he wants you to use this as he will be explicitly giving you the local resources / structure / supporting industries / local demand
All you have to do, then, is plug them into the model
It is a fairly specialised model and so won’t be as prominent in the exam as, say, the 5 forces model