The Porter’ diamond model was described in his book Competitive Advantage of Nations; it’s an economical model theory, where Porter has approached the facts and figures regarding excel of certain corporation in particular and suitable locations. The Porter has practically advanced by relating the four practical factors and the behaviors related to the particular companies excelling in the particular demographic locations and have also established the government’s pro-active attitude towards influencing the particular business (Bruce and Pitts, 1988).
Traditional country advantages
The traditional economic approach of comparing the competitive advantages of the nations included Location, Land, and natural resources including the fuels and minerals, land, population size at particular location and the associated labor with that population. But the economic opportunity of the nation was scarcely affected by such detriment as mentioned above rather they were considered passive in this regard. Porter’s view was quite diverged from this inherited view of factors influencing the opportunities and considered such factors in destabilizing the expected out puts regarding the competitive advantages.
Porter’s Concept of Clusters
The term clusters as perceived by the Porter was associated with the assemblage of interrelated entrepreneurs, the interconnected industries, suppliers and the firms that were coupled with certain demographic location. And in the view of Porter the inclusion of capable labor, a competent technology, strong base of knowledge, the specific culture of the nation and alliance of the government are the factors to be created by the nations.