GSM Lecture 5

Management > Global Strategic Management > Conditions > Macro/microenvironment > Porter's 5 Forces > 5 Forces explained > 5 Forces continued > Market analysis > System views > Macroenvironment > STEP > Porter's Diamond > Diamond explained > Problems

Problems

Porter's diamond is a useful tool for analysing national competitiveness, but it does have some limitations.

• To understand national competitiveness more fully, a comprehension of global industries is necessary, which Porter does not cover
• It does not take into account MNEs
• There is an assumption that technology is free-flowing
• It only works for larger countries
• It does not consider how a competitive advantage is integrated into a world model