Porter's Diamond Model Case Study

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Michael Porter introduced the diamond model in his book "the competitive advantage nations", he make a research in ten leading trading nation. It also referred to the Theory of National Advantage. It's designed to help government to understand the competitive advantage. It suggests that the national home base of any organizations are playing a supportive role in shaping the size or scoop to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support organizations from building advantages in international competition. Porter classifies four determinants: Factor Condition, Diamond Condition, Relatives & supporting and Structure, strategy & Rivalry. Egypt government should acts to catalysts to improve Egypt position in a globally competitive economic environment. Porter's diamond model suggests threat there are inherent reasons why some nations are more competitive than others on an international market (Porter M., 1990). Another factor that influence in competitive advantages such as the policies that put by government. One of the most influencer policies is (FDI) Foreign direct investment policy. National policies are set by government for attracting FDI to a larger number of developing countries and for earning the full interest from FDI for development. FDI policies…show more content…
To facilitate processing for FDI, the country should to have a development infrastructure. All various types of infrastructure that describe the behavior of a country like health, skilled labor, communication technology and education. Therefore, it will be benefited by FDI. Government can improve and structure the existing technological tools at their disposal. It focuses on long term plan and vision. Also, communication infrastructure is an important field; it's used for the construction of railways, bridges and
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