With the continuous development of modern agriculture in China, agricultural industrial cluster has become one of the most important organizational forms in agricultural development, and the "diamond model" is an important theoretical analysis model to measure the competitiveness of industrial cluster. Taking the development of apple industry cluster in Shandong as an example, through the "diamond model", respectively from the factors of production, demand conditions, related and supporting industries and the enterprise strategy, structure and competition of the four major key factors, as well as the opportunities and the government two exogenous factors analysis, thus it is concluded that the competitiveness of industrial cluster development strategy in Shandong, and provide reference for other agricultural industry development.