Module: General Practice
Q64: Michael Porter's "Diamond Model" is a framework used to analyze why certain clusters achieve competitive advantage. Which of the following is NOT one of the four main attributes of the Diamond?
✅ Correct Answer: D
Concept Definition: Porter's Diamond explains the competitive advantage of nations or clusters.
The 4 Pillars:
Factor Conditions: Specialized inputs like skilled labor and infrastructure (not just cheap labor).
Demand Conditions: A demanding local market that pressures companies to innovate.
Related & Supporting Industries: Local suppliers who are globally competitive.
Firm Strategy, Structure & Rivalry: Intense local competition that forces efficiency.
Correction: "Government Subsidies" is not a core pillar.
In Porter's view, the government's role is a "catalyst" or "challenger," not just a financier of losses.
The 4 Pillars:
Factor Conditions: Specialized inputs like skilled labor and infrastructure (not just cheap labor).
Demand Conditions: A demanding local market that pressures companies to innovate.
Related & Supporting Industries: Local suppliers who are globally competitive.
Firm Strategy, Structure & Rivalry: Intense local competition that forces efficiency.
Correction: "Government Subsidies" is not a core pillar.
In Porter's view, the government's role is a "catalyst" or "challenger," not just a financier of losses.