Abstract: The present invention provides a firm's diagnosis which evaluates the position of a product or single product firm in the market according to its strategy of differentiation. Based on an Integrated Innovation Model (IIM), a system of data recovery (for example, a questionnaire) allows making a diagnosis of firms. Based on the averages of each of three dimensions used in the model (competitive pressure, differentiation and outcome), it calculates the respective position in those dimensions. After this, the diagnostic provides firm's position in the four spaces of the IIM. The three dimensions of the model are divided into subdimensions, and then a comparison is made between each dimension and the respective subdimensions. Data recovery could be repeated for several firms and, with the storage of results, which can then be used for benchmarking by comparing a firm to the respective industry and also to the high performing firms in the industry.