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Hi All,
I would like to understand where exactly Porter’s Diamon is applicable. It is clear that the model is used for competitive advantages of countries. But I feel like model is more based on the “home Country” competitive advantage.
My question is can I use the model when I need to address whether a country is attractive as a new market for market development?
Another question is what kind of models/analysis I can use for addressing the attractiveness of a country as a new market for the company?
Thanks in advance
Porter’s diamond attempts to explain why certain nations are good at certain things. However, this tends to be because of historical events eg the country is fortunate in having deposits of a certain mineral, or had had a population that demanded a certain product. However, explaining a country’s traditional strengths is of little use for strategic decisions.
Instead, for exam questions, the diamond’s use is changed somewhat so that it indicates if expanding into a country might be a good idea. So, if you were thinking of setting up a courier service abroad, you would be interested in transport infrastructure (a factor condition), whether there was demand for your services (home demand conditions), rivalry (too much might make it difficult) and supporting industries (eg garages and engineers capable of maintaining vehicles and warehouse machinery).
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