On the other hand, if Porter’s diamond model adopts some of Sun Tzu’s elements (i.e., the generalship, the same goal, and the system of internal coordination), related to firm-specific advantages, it becomes a more useful framework for analyzing a firm’s competitiveness. This chapter demonstrates that by adding Sun Tzu’s overarching strategic theme – knowing the enemy – to the five elements and extending the elements of terrain and heaven (two of the five elements), Sun Tzu’s extended five elements can better estimate the probability of victory in war. Sun Tzu’s five elements are compatible with three endogenous factors of the diamond model. Similarly, the diamond model was developed to evaluate the competitiveness of nations, but it has also been widely applied to industry- and firm-level analysis.Ī careful analysis of Sun Tzu’s five elements and Porter’s diamond model reveals a surprising level of congruence between the core thoughts of two masters, cutting through more than 2,500 years of history. The five elements are used to compare one’s own competitiveness with that of one’s opponent to assess the probability of winning in war.

This chapter selects Sun Tzu’s five elements framework from the first chapter of The Art of War and Porter’s diamond model for theoretical comparison. Thus, a comparison of Sun Tzu to another theoretician must cater to each of Sun Tzu’s chapters, rather than the whole book as a single unit. While seamlessly organized, each of the thirteen chapters in The Art of War is an independent set of military strategies and theories on warfare. Porter: Diamond model for analyzing competitiveness

Sun zhus the art of war 3 principles