Michael Porter’s Diamond model is a tool that helps companies decide on the type of strategy to adopt for their business or product. The model highlights three different types of strategies: low-cost production, low-cost differentiation, and high-cost production. The diamond model was originally designed to help companies decide which type of strategy they should adopt but it can also be used to identify the strengths and weaknesses of a company’s current strategy. In general, the diamond model is composed of five forces that are applied to the company in order to determine its potential success. These forces are competition, threat, opportunity cost, cost structure, and sustaining innovation.