The four classic elements of the strategic diamond (factor conditions, demand conditions, related and auxiliary sectors, strategy structure and company rivalry) interact with each other, which is key to understanding the synergies in the configuration of competitive advantage.
Analysis of factor conditions enables the philippine cp number identification of basic and advanced resources that can contribute to creating a competitive advantage.
Understanding demand conditions, including their structure and distribution, enables demand to be met more effectively.
The analysis of related and auxiliary sectors allows us to better understand the competition and the supply chain, which is key to understanding a company's place in the market.
The analysis of strategy, structure and rivalry allows us to understand how market competition affects the development of a company's innovation.
In addition, the strategic diamond takes into account the impact of government action and opportunity, which, although temporary in nature, can have a significant impact on a company's competitiveness.
The strategic diamond offers information that can provide a solid foundation for establishing strategies to grow the company, fight competition and take advantage of market opportunities.
Are you wondering how your company compares to the competition or want to know how to improve your position? The strategic diamond developed by Michael E. Porter can be a useful tool. Originally it referred to the theory of competitive advantage between countries, but in today's economic reality it can easily be applied to the analysis of specific companies or sectors. The diagram distinguishes four elements that, analyzed in sufficient depth, can provide information about the competitiveness of our company and how it can develop.