The Diamond Model Porter's 5 Forces is a tool that helps in understanding the competitive environment of an industry. It helps in analyzing the industry structure and provides insights on how to improve one's position. The Diamond Model Porter's 5 Forces is a tool that helps in understanding the competitive environment of an industry. It helps in analyzing the industry structure and provides insights on how to improve one's position. This model was created by Harvard Business School professor Michael E. Porter and has been used by many companies, including Microsoft, GE, Toyota, and others.