You are using Porter’s Diamond to analyze the ability of a foreign competitor X to succeed and be a potential threat when entering your home market Y. You learn that X is market leader in their country of origin Z. Under what conditions is X likely to be a competitive threat to your home market leadership?

You are developing a new ‘smart shoe’ that can measure body temperature and adjust air circulation to regulate user comfort. You are thinking about partnering with a ‘smart watch’ producer to provide a convenient user interface and to allow customers to manually regulate shoe air circulation. Using Porter’s Five Forces and the ecosystem concept, what are critical factors that may affect the profitability of this idea?