Competitive Analysis with Diamond Model
To analyze the diamond model competitiveness, Prof. It is a method developed by Michael Porter. Competitive analysis helps to understand the business, the market and competitive conditions in which the business operates. In this way, the perspective of gaining competitive advantage is provided to the project team. During the strategic framework creation phase of Workcube Digital Transformation projects, Workcube consultants conduct competitive analysis of the business using the Diamond Model.

- Demand Conditions: The survival of a business depends on making sales and sales depend on creating demand. Market trends, expectations, growth scenarios, local, national and global market sizes and demand structure are examined.
Write your results directly on the diagram in simple and understandable sentences. In addition; You can describe your findings as weak, moderate or strong.
For example; The widespread use of smartphones and tablets has reduced the demand for desktop computers. In this case, a manufacturer producing desktop computers must find a new way according to demand conditions. Or cultural differentiation according to geography makes food different. You cannot sell hot sauces in a society that does not like spicy food.
- Entry Requirements: Every business and geography has opportunities. Input conditions such as human resources, physical resources, information resources, capital resources and infrastructure expand or narrow the capacity of the enterprise. Understanding the input conditions helps understand the possibilities and what can be done to push the possibilities.
For example; A company that will produce medical devices tries to establish its factory in a city where talented engineers live. Data centers are built in countries where it is cold and energy costs are low. Reducing input costs is very important even in value-added industries.
- Related and Supporting Sectors and Institutions: No business is strong on its own. There are complementary businesses, educational institutions, sectors. Examine the relevant and supporting sectors and institutions according to the nature of the company's work.
For example, a milk processing plant needs plastics, glass bottles, labels, and designers to design the packaging to package its products. In a place where there is no packaging industry, milk processing plants will have difficulty.
- Company Strategy, Structure and Competitors: Competition increases quality and accelerates development. If the competitors are strong, the job becomes difficult. The goals and management styles that companies set to achieve their intended success are important. Intense competition also forces the company to innovate for competitiveness.
For example; While a hierarchical company can be successful in construction, a horizontal organization is more successful in architecture and design.
- Government and Regulation: Government and legal regulations can influence and direct the entire market, competition, demand, supply process and all other factors. Examining and understanding the regulations affecting a company guides implementation and ensures you do the right things.
For example; Taxes may vary depending on countries and cities, incentives can be deducted, CE norms in Europe, ASTM in America, DIN in Germany, TSE norms in Turkey are valid. Carbon emission rates in Europe are lower than in China.
- Luck: Uncontrolled developments can turn into opportunities but also cause losses. While creating the strategic framework, luck factor and conjuncture are taken into account.
For example; A storm breaks out, it rains and the windows of vehicles and houses are broken. While this is an opportunity for glass manufacturers and services, it causes losses for insurance companies.
Try to get to know the competitors by making tables about the competitors as follows.
| Competitor Company | Products and Services | Region* | Density |
* Local, National, Global, ** Low, Medium, High
Exercise
Conduct a competitive analysis of a business using the Diamond Model. If possible, discuss the analysis with at least three people and finalize it with their opinions.