Porter’s Diamond Model of National Competitiveness

Running head: PORTER’S DIAMOND MODEL OF NATIONAL COMPETITIVENESS
Porter’s Diamond Model of National Competitiveness
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PORTER’S DIAMOND MODEL OF NATIONAL COMPETITIVENESS
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Executive Summary
The objective of this paper is to highlight the importance of Porter’s Diamond Model in the
economy of Singapore. The four important dimensions of the model has been explained in this
paper incorporating the real-life examples. The inclusion of the real-life example has enhanced
the quality of the analysis of the paper. The examples have been drawn from the reliable
resources. Having been recognized as tigress of the Asian Economy, Singapore holds a
remarkable market strength across the world. Its advanced technology, skilled labor force and
developed service sector are considered as the fundamental pillars of the robust economic over
the last decade. However, unrest economic condition, like, international trade war, financial
crisis and geo-political strive trigger a serious challenge to the macroeconomic policymakers in
Singapore.

PORTER’S DIAMOND MODEL OF NATIONAL COMPETITIVENESS
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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Factor conditions:.......................................................................................................................5
Demand Condition:.....................................................................................................................6
Related and Supporting Industries:...........................................................................................7
Firm Structure, Strategy and Rivalry:.......................................................................................8
Opportunity:................................................................................................................................9
Government:..............................................................................................................................10
Conclusion.....................................................................................................................................12
Reference list.................................................................................................................................14

PORTER’S DIAMOND MODEL OF NATIONAL COMPETITIVENESS
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Introduction
The economy of Singapore is highly developed, business-friendly and trade-oriented. This
sovereign city-state is one of the alluring business hubs for both national and international
investors. Its position among top five economies in terms of the Ease of Doing Business Index
describes its strong position in the international market. As per the data, the economy offers least
corrupt financial market to the corporate companies. The per capita income of Singapore is
registered around US$ 55,000 (approximately) in 2019 which highlights the strong purchasing
power of the consumers. The consumers are capable of spending money as to get quality product
and services from the market (Chiu 2018). Apart from the demand, an investor should entail
sound knowledge, local business laws and establishment costs about the market structure of
Singapore. The companies always attain to extend the business on which they hold competitive
advantage with respect to their rivalries. Competitive advantage is generally determined by the
degree of the opportunity cost. The company will be considered to have competitive advantage if
the opportunity cost is least for the particular product. The economists have found that the
company achieves this economic advantage due to different economic variables. Some basic
factors are always important for specific type of industry. For example, agricultural firms are
relative labour-intensive than the technology firms. Therefore, the agricultural firm should
overhaul whether the domestic or foreign country is enrich in labour and land.
According to Porter’s Diamond model, every country owns competitive advantage in
particular industry. The certain model is the reflection analytical study of ten nations. This study
examines how a country competes with its overseas rivals in trade sector (Vlados 2019).
Economic environment, trade and institution policies have been observed to have critical role in
determining the competitive advantage position of the country. The study is conducted across