1. The model of ‘Competitive Advantage’
in Sports
The model of ‘Competitive Advantage’ that Professor Michael Porter, a leading authority in
Business Economics, has conceived, can be used as a strategic framework to design and plan the
introduction of a new sport, or the further development of a specific sport, at a national /
regional scale.
2. M. Porter’s ‘Diamond’ in Sports
Government
ChanceFactor
Conditions
(Resources)
Demand
Conditions
Related Sports
& Supporting
Activities
Strategy,
Structure
& Rivalry
3. Factor Conditions (Resources)
Human Resources: size of population, physical and mental characteristics
Knowledge: technical and scientific knowledge, cumulative experience, school of practice
Natural Resources: climate, terrain, existence of water, winds, etc.
Infrastructure: number, type, quality standards, availability / cost of use of sports facilities
Capital: amount, sources, cost / required rate of return
4. Demand Conditions
Size and frequency of demand for participation or attendance
Pressure and maturity of demand
Profitability prospect
5. Related Sports & Supporting Activities
Clusters of sports with common features: martial arts (e.g. tae-kwon-do, judo, karate), ‘white’
Olympic sports (e.g. ice-hockey, ice-skating, skiing), water sports (swimming, synchronized
swimming, diving).
Entertainment activities: e.g. sun-bathing combined with beach-volley, going to the pub with
snooker or bowling.
Production activities: e.g. concentration of car manufacturers can boost motor-sports.
6. Strategy, Structure, and Rivalry
Vision and Plans
Organizational Structure
Stakeholders Involvement
Management Skills & Policies
Conditions of Strong and Fair Competition
7. Government
Capital (direct / indirect financing)
Development of facilities
Incentives to athletes
Bidding for international events
Sports in Education, Armed Forces, state-owned enterprises etc.
8. Chance
Randomness, by default, is a decisive factor in sports.
A single charismatic athlete (more often than a team) is likely to overcome the deficiencies of a
given environment, or even avoid them by expatriation, and get a big international win.
Such a fact can have a ripple effect and become the catalyst for the development of a specific
sport.
