Determine the appropriate industry group in which Diamond operates, and identify its competitors, input suppliers, and major classes of customers. Then, evaluate the competitive position of Diamond Foods' industry around 2011, using Porter's five forces framework (Porter 1979).

(b) Evaluate Diamond's business strategy during 2006-2011 and provide an assessment of its sustainability in the longrun. Are Diamond's financial statements (Case Exhibit 2) consistent with its strategy?