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The Diamond-E Strategic Analysis Model

This paper is a summary review of the Diamond-E Strategic Analysis Model proposed by Joseph N. Fry and Peter J. Killing in their book Strategic Analysis and Action, originally published in 1986, and since updated in the 4th edition released in 2000.

This strategic analysis model looks at how the structural, cultural, and process related elements of an organization and the human and physical assets work through their strategies to impact the environment in which the company chooses to compete and operate. This environment may be an external marketplace in which the business unit is trying to compete, a “hostile” internal environment in which one business is competing with another business unit for funds or other resources, or a “friendly” internal environment where the customers of the organization doing the strategic planning are all internal.

In this model, strategy is comprised of four elements; Goals, Competitive Premise, Product Market Focus, and Business System Focus. Every strategic initiative always has some goal or goals to be achieved. Depending upon the goals and the nature of the business initiative, any one of the other facets may be dominant but all will be present to some greater or lesser extent.

Goals are fairly self explanatory but essentially represent all of the hard and soft goals (financial performance, market share, employee and customer care, etc.) that the organization is trying to achieve in its environment.

Competitive Premise is the definition of how your organization chooses to meet its competition in the marketplace, or, in other words, differentiate itself from the competition. This could be an external competitor or an internal competitor.

Product Market Focus is the definition of the product markets you are choosing to compete in. In the case of internally competing for resources etc. it is the definition of what your offering is to the market place and what from a product...