IMC Campaign Stories
February 14, 2021
Financial Statement Analysis and Firm Performance
February 14, 2021

Porter’s Diamond

Written Assignment – Porter’s Diamond

In 1990, Michael Porter and a team of researchers attempted to determine why some nations succeed and others fail in international competition. The task was to explain why a nation achieves international success in a particular industry, such as Japan in the automobile industry and Germany in the chemical industry.

Porter theorizes that four factors of a nation lead to shaping the competitive advantage:

  • Factor Endowments
  • Demand Conditions
  • Relating and Supporting Industries
  • Firm Strategy, Structure, and Rivalry


Your Hill & Hult textbook describes Porter’s theory in detail. In a 3-4 page paper, give an example of an industry and a country and relate each of the four factors of the Diamond to this example. How has that industry succeeded or failed according to the Diamond strategy?

NOTE: Do not use an individual company or firm as your example, the Diamond illustrates industries as a whole.

This assignment is due at the end of this week.

The Grading Rubric for Assignment is as follows: (Total of 50 Points)

Factor Endowments (Heading) 10 points: To clearly identify the Basic factors (5 points) and advanced factors (5 points) of your industry and country chosen.

Demand Conditions (Heading) 10 points: To clearly identify the demand conditions for the industry’s product in your country.

Relating and Supporting Industries (Heading)10 points: (5 pts Related industries, 5 pts Supported industries)-Identify the related industries and supported industries that lends support to your industry having national advantages and are internationally competitive

Firm Strategy, Structure, and Rivalry (Heading) 10 points: (5 pts. for Firm Strategy and Structure, 5 pts. for Rivalry)-Clearly identify in your paper the strategy or strategies that make your industry competitive. Give an explanation of structure of firms in creating competitive advantages. In your paper identify the domestic rivalry aspects that are competitive advantages for your industry in your country.

Conclusion Section 4 points: (Will take off points if no conclusion in paper)

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