What does the fortune teller mean by diamond life?

Porter's diamond theory, also known as Porter's diamond model, Porter's diamond theory, diamond theory and national competitive advantage theory, was put forward by Michael Porter, a famous strategic management scientist at Harvard Business School in the United States, in 1990. It is used to analyze how a country forms its overall advantages, so it has strong competitiveness in the world.

The logical starting point of the theory of national competitive advantage should be theory of absolute advantage. The theory of national superiority originated from Adam Smith's theory of absolute advantage or absolute cost theory.

According to this theory, every country has its absolutely favorable conditions for producing a certain product. If all countries carry out specialized production and product exchange according to their absolutely favorable production conditions, they can effectively use their own resources, labor and capital, thus effectively improving production efficiency and increasing the material wealth and social welfare of trading countries.

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The Connotation of Porter's Diamond Theory

The content of industrial competitiveness comparison is industrial competitive advantage, which is finally reflected in the market realization ability of products, enterprises and industries. Therefore, the essence of industrial competitiveness is the comparative productivity of industries. The so-called comparative productivity refers to the comprehensive ability of an enterprise or industry to continuously produce products that consumers are willing to accept in a more effective way than other competitors, so as to obtain satisfactory economic benefits.

The scope of industrial competitiveness comparison is a country or region, and industrial competitiveness is a regional concept. Therefore, the analysis of industrial competitiveness should highlight various factors affecting regional economic development, including industrial agglomeration, industrial transfer, location advantages and so on.

Baidu Encyclopedia-Porter's Diamond Theory