Question

While taking into account different dimensions of strategy diamond, would you prefer to make any change to the model?

Would you add or delete any dimension? Why or why not? Provide the rationale while supporting your answer.

Answer 1

There are 5  dimensions of strategy diamond that are bargaining power of suppliers, bargaining power of customers, rivalry among the customers, the threat of new entrant and level of competition. In my opinion, apart from these 5 elements, one more element should be added in this framework which is government intervention. The reason for adding this factor is that when we talk about the industry, it is also largely affected by government policies and interventions. There are many industries that are regulated by the government and in order to operate in that industry, the firms need approval from the government. Apart from this, some companies get relaxed tariffs in the same industry while some do not get these benefits. Similarly, some businessmen can get the land at a lower cost that becomes their advantage which may not be offered to the other players in the industry.

Thus the manner in which the government favors some business houses and ignores some can also play a significant role