Porter’s diamond model approach: Assessing the competitiveness of British Columbia’s lumber industry’s exports to India

The British Columbia softwood lumber industry continues to pursue market diversification to reduce the reliance and market vulnerability of the United States (US) for exports. Recently, the industry has been successful in penetrating the China market and is looking to emerging markets such as India for further growth and diversity, but India remains an elusive market which poses many challenges. The purpose of this study is to examine how to enhance B.C. exports to India and maintain its competitive advantage in this lucrative market. This study employs two competitiveness models, Porter’s (1990) diamond model and also the generalized double diamond model developed by Rugman et al., (1993) as the analytical framework for analyzing the competitive dynamics of Softwood Lumber industry’s drive for market development outside North America and to identify opportunities to achieve this. Using the four determinants (1. factor conditions, 2. demand conditions, 3. related and supporting industries, 4. firm strategy, structure and rivalry) of Porter's diamond model, the B.C. softwood lumber industry's current home advantages and competitiveness is identified. Through the identification of the home advantages, the generalized double diamond model internationalizes these advantages with India and examines the prospective competitive advantages, directions and solutions for the industry in enhancing the market share in the Indian lumber market.