Porter diamond model states:

the competitive advantage of an industry or business that makes it work better than other
competitors in a region or country. Also known as the Porter Diamond Theory of National Advantage,
the model explains why certain industries thrive in particular nations. Companies use this model to
analyze the competitive environment in foreign markets before entering them.

Pakistan’s sports goods has major contribution to the GDP of Pakistan. This sector not only contributing
to the revenue but also provide employment opportunities, generating national income,

increasing foreign exchange and contributing to national trade. It is the major exports of Pakistan as in
2022 Pakistan earned 14billion USD on exporting sports goods.

We can explain the export of sports good under porter diamond model by the following a:

 Factor condition:

Factor conditions are actually which are necessary to make the product such as raw materials ,human
resource etc. these factor are basic and advance in categories.

Basic factors are those which are not the reason of competitive advantage or can be Obtained by any
one. Such as raw materials .Manufacturing firms get raw materials such as rubber ,wood , leather and
varnish etc. From local suppliers as well as import from japan , Korea and England.

Advance factor are the actual cause of competitive advantage .in Pakistani sports goods manufacturing
industry the most valuable factor is skilled labor .the abilities of the Pakistani labors is unmatchable to
anyone in the world. For example the footballs manufactured in Pakistan are highly demanded in world
because the foot ball are stitched in a finest manner which is the specialty of Sialkot labor. The most of
the worker in factories are females who have delicate fingers which make the stiches finest .

 Demand condition:

The second element of porter diamond model is demand condition which is actually the demand of a
good in local market as well as in international market. Pakistani sports goods are highly demanded
international market Even the football used in FIFA world cup are manufactured in Pakistan export
almost 98% of sports goods while only 2%are sold domestically. Most of the famous brands export
sports goods and sold them by giving their brand name.

As the product market increases the competition also increases. To keep our product alive in market we
have to maintain our quality because that is our competitive advantage.

 Relating and supporting industry

The share of Pakistan sports goods in total exports of Pakistan is 1.51% (2015-16) with football as major
export product having 43% share of total sports goods exported in 2012-13 and major export of Pakistan
sports goods are to Europe. Pakistan operates one of the largest and most prominent sports goods
industries in the world. It exports a large chunk of its sports goods to some of the most famous
international brands including

Nike

Adidas

Puma

Umbra

Lotto

Wilson

Due to better quality of sports goods Pakistan’s sports items gain foreign fame. Because of its well
production process starts from adaptation of raw material to delivering to customers. This process
involves better selection of raw material, designing of goods, production process and timely delivery to
customer.

 Firm strategy, structure, and rivalry:

Sports goods worth US$ 450 million annually from around 2,400 companies. Sialkot caters for more than
70% of total world demand for hand-stitched inflatable soccer balls, around 40 million balls annually
worth US$ 210 million. Football with a share of 0.7 percent in total export rose both in quantity and
value by 15.8 percent and 7.8 percent, respectively, on account of an innovation driven football making
company which maintained the largest global presence with renowned global brands

Footballs, gloves, and sportswear account for more than 80% of the total sports goods exported.
Footballs made in Pakistan have been used in international tournaments throughout history. Brazuca
and Telstar were the two Pakistani-manufactured footballs that became a part of FIFA World Cups in
Brazil and Russia, respectively. Pakistan also has the honor of providing hand-stitched footballs for the
world cups organized from 1990 to 2010.

In 2020 the top exporters of Sports Equipment were China ($16.1B), Chinese Taipei ($2.4B), United
States ($1.6B), Germany ($1.11B), and Netherlands ($912M). China is found to be the top exporter of
sports goods in the world. China´s export growth jumped to the highest in over two decades on during
the year 2020. China has 49% of the market share of Sports Goods in the world. There is no local brand
of sports goods acclaimed internationally from Pakistan although major brands buy their products from
Sialkot. There is a sever need for specialized training in branding for local exporters.